Financial Aid, Dropping/Withdrawing from Classes
What happens to Financial Aid recipients who withdraw or stop attending classes?
Students who receive federal financial aid are subject to a federal regulation if they cease attending before the end of the term. This law applies in cases where a student ceases enrollment officially OR unofficially.
- Return of Title IV Funds - IVCC must return financial aid funds to the Department of Education when a student stops attending before 60% of the term has been completed. If a student stops attending classes before that point in time, IVCC must return a portion of the financial aid because it was not "earned." Because IVCC has to repay money to the federal government, the Business Office will bill the student for this amount (i.e., the balance created on the student's account once the funds have been returned by the college). If this balance is not paid, the student will be prevented from registering for future classes at IVCC and a hold will be placed on the student's academic transcripts. The amount the student will owe is based on the date the student stops attending. IVCC will determine what percent of the semester has been completed. For example, if the student's tuition and fees are $800 and the student completes 25% of the semester, then IVCC must return 75% of the student's aid (= $600) to the Department of Education. The student will then owe $600 to IVCC for the now unpaid tuition and fees.
- Financial Aid Disbursements - A student receiving financial aid who stops attending IVCC may also be required to return a portion of Federal Grant aid (Pell Grant or SEOG Grant) which was paid directly to the student by IVCC. The student may be required to return a percentage of the unearned grant aid he/she received if he/she stopped attending before 60% of the term has been completed.
Students who do not return these federal funds will be barred from receiving further financial aid because IVCC will refer these persons to the Department of Education for debt collection. If that happens, the student will lose eligibility for financial aid at all colleges in the United States until he/she has either repaid the money or established a satisfactory repayment program with the Department of Education.
Because this regulation is complex, you are strongly encouraged to contact the Financial Aid Office before you stop attending IVCC.