6.2.4 Return of Federal Funds (R2T4)
The treatment of Title IV funds is governed by the Higher Education Amendments of 1998, Section 484B 34 CFR 668.22 (Return of Federal Funds). The Law requires the college to determine the amount of aid a student earned based upon the length of time the student is enrolled during a payment period (semester). If a student completes 60% or less of the semester, the percentage of the period completed is the percentage of aid earned. Refer to the pro-ration calculation as an example. If a student completes at least one day beyond the first 60% of the semester, the student will have earned 100% of the aid disbursed. Eligibility for late disbursements will be considered on a case-by-case basis. Exceptions are “unofficial withdrawals” as described on the previous page. (Work earnings are excluded from these calculations. The student will be paid for actual hours worked.)
Software provided by the Department of Education is used to determine your “earned” versus “unearned” federal aid based on your official withdrawal date.
Financial Aid returned must be allocated in the following order”
- Unsubsidized Federal Direct Loans
- Subsidized Federal Direct Loans
- Federal Graduate PLUS Loans
- Federal Parent PLUS Loans
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant
Students who have acquired any Federal Student Loan while enrolled must complete the required exit counseling on www.studentaid.gov when a student graduates, drops below half time attendance, or withdrawals from the institution at any time.
6.2.5 Return of State Funds
(Only applies to these state funding programs: NC/VT/others if applicable). Awards made by a state will be refunded back to that state as directed by that state’s policy. Most are consistent with the same process as “Return of Federal Funds”. North Carolina provides us with their own policy and refund calculation worksheet.
State-funded grants are provided to assist students with the cost of attendance on the assumption that the students will attend college for the entire term for which the funds are awarded. When a student withdraws before the end of the term, an institution must determine how much, if any, State grant funds must be returned. The amount an institution must return depends on when the student withdraws. Changes in eligibility if a student reduced his or her original number of enrolled credit hours are addressed in specific program rules. Institutions are required to calculate the amount of funds it must return, when a student withdraws prior to or on the 35% point of the term, via the CFI Grant System. In completing the calculation, the “last date of attendance” is determined consistent with Title IV regulations for a Return of Title IV Funds. “Term” means the academic period for which the State funds are awarded.
- If a student’s last date of attendance can be verified and is prior to or on the 35% point of the term, the State grant repayment will be based on the percent of the term not completed (or the percent of the scheduled hours remaining in the payment period for clock hour schools). • If the last date of attendance occurs after the 35% point of the term, the State grant award is considered 100% earned and no State grant repayment is due. State grant repayment formula: Known last date of attendance, prior to or on the 35% point of the term.
6.2.6 Return of All Other Funds
This same earned and unearned percentage will be used for the remainder of a student’s institutional financial aid.
- This includes merit aid, need-based aid, institutional scholarships, and institutional tuition programs including NC Free Tuition Plan and the MilePost One tuition scholarship.
- NC Free Tuition Plan and MilePost One scholarships will cover the students tuition up until the date of withdrawal. Funds will be prorated to cover the tuition only reduction of charges. Any balance remaining will be the responsibility of the student.
- Any remaining unearned non-federal aid will be returned to WWC institutional and/or private/outside donor funds - in that order.
- Any designated outside scholarships (civic club, church, etc.) will be handled as instructed by the donor. If there are no special instructions, designated outside scholarships will be applied towards any remaining balance due to Warren Wilson College or refunded to the donor.
- Alternative educational bank loans and VA Chapter 33 benefits may also be applied towards any remaining balance due to the college. Any remaining alternative loan funds held by WWC after direct costs have been paid will be returned to the borrower’s lender as a prepayment.
Spring awards cannot be applied towards fall charges. Any remaining VA Chapter 33 funds will be refunded to the student (VA recipient). The VA recipient will be responsible for repaying, if necessary, any unearned veteran funds to Veteran Affairs. Questions regarding VA benefits should be directed to the Financial Aid Office.
Federal, state, and institutional financial aid policies are subject to change as necessary for WWC to remain in compliance with federal and state regulations.
For the most updated policy information please visit our website: