Return of Funds

Withdrawal and Return of Title IV Aid

Unexpected events may cause students to withdraw or stop attending their courses prior to the end of the semester. Federal regulations require that a Return of Title IV Aid calculation be performed on any student receiving federal aid during the semester. Federal aid includes the Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (SEOG), Federal Direct Loans, and Federal Direct PLUS Loan.

The Financial Aid Office will perform a Return of Title IV funds for each student that withdraws and/or is administratively withdrawn for non-attendance for the semester or who earns grades of all F’s and notify the student of any repayment of funds as a result of the calculation.

If the student withdraws, a Title IV refund calculation will be processed based on the last day of attendance and all federal aid will be calculated according to the federal regulation. If the student withdraws from school prior to completing 60% of the term, he or she may be required to repay all or part of financial aid received for that term.

If the student initiates the withdrawal process after completing over 60% of the enrollment term, he or she will have earned 100% of the federal financial aid for that term and no repayment is required.

Repayment of Unearned Aid

The portion of the term that the student does not attend represents the portion of aid that is determined to be unearned. Earned federal financial aid is prorated according to the percentage of the semester completed. The amount of the unearned federal aid is the total amount of federal aid less the portion of earned federal aid. Unearned federal aid, other than federal work-study, must be returned to the federal government. The responsibility to repay unearned aid is shared by Galveston College and the student. GC’s share is the lesser of the total amount of unearned aid or the institutional charges multiplied by the percentage of aid that was earned. The student’s share is the difference between the total unearned amount and the institution’s share.

Earned financial aid is prorated according to the percentage of the semester completed. The return of funds is allocated among the Title IV programs, in an order specified by federal statute. GC is required to return all unearned federal aid attributed to school charges. This means that a portion of the student’s tuition and fees is no longer covered by financial aid and the student or financial aid recipient is liable for paying the balance of school charges. All unearned federal aid is attributed to school charges is subject to immediate repayment by the financial aid recipient unless the financial aid recipient is eligible for tuition and fee refund.

Failure to Begin Attendance in All Courses He or She Was Scheduled To Attend

Anytime a student begins attendance in at least one course but does not begin attendance in all courses he or she was scheduled to attend, regardless of whether the student is a withdrawal, the school must check to see if it is necessary to recalculate the student’s eligibility for Pell Grant and other funds based on a revised enrollment status. If the student is a withdrawal, this recalculation must be done before performing a Return of Title IV Funds calculation, and the school must use the recalculated amounts of aid in the Return calculation. If a student who has withdrawn did not begin attendance in enough courses to establish a half-time enrollment status, the school may not make a first disbursement of a Direct Loan to the student after the student withdraws.

When a Student Fails All Classes

If a financial aid student has not officially withdrawn and fails to receive a passing grade in at least one class during the semester, the Financial Aid Office will determine whether the student actually established eligibility for the aid originally awarded. This is intended for students who received all “F’s” and stopped attending before the end of the semester. Instructors will be contacted and asked to provide information on the student’s attendance. If the student did not begin attendance, or stopped attending during the semester, the financial aid originally awarded will be canceled or adjusted.

In Person

Financial Aid Office

Phone

409-944-1235