If you withdraw, drop out or are dismissed from the College before completing 60 percent of the semester, you may need to return funds received from Title IV programs which include Federal Pell, SEOG and state grants, as well as Federal Direct Student and Parent PLUS Loans. The Financial Aid Office will notify you in writing of any repayment required.
The Financial Aid Office calculates the amount of money that must be repaid. The responsibility for returning funds is allocated between PVCC and you, according to the amount of money you earned by attending classes. PVCC is required to return unearned Title IV funds. You will be billed for any amount owed to Title IV programs or PVCC as a result of returned funds.
Repayment is calculated based on the percentage of aid you earned over the course of the semester.
To determine your percentage of earned aid, divide the number of days completed up to your withdrawal date by the total number of days in the semester. Breaks of five or more days are not counted in the semester total.
Multiplying the percentage of earned aid by the amount paid toward institutional charges determines the amount of earned aid in dollars. Subtract the amount of earned aid from the total amount paid toward institutional charges to determine unearned aid in dollars.
If you earned more aid than you received, you may receive a payment for the difference. In that event, you will be notified by the Financial Aid Office and must respond within 14 days. If there is no response, the funds are returned to the federal programs.
If you received more aid than you earned, the amount of Title IV funds that must be returned is determined by subtracting the earned amount from the amount actually paid out.
Example (for illustrative purposes only):
Seth received a Pell Grant in the amount of $1,875 for the fall semester.
He registered for 13 credit hours.
Tuition cost $524.16 and textbooks cost $310.75.
His total institutional charges for the semester come to $834.91 ($524.16 + $310.75).
On September 9, Seth received his financial aid balance check in the amount of $1049.09 ($1875 - $834.91) to use for other educational expenses throughout the semester.
In October, Seth's work schedule changed, causing him to withdraw from all of his classes. Since Seth has completely withdrawn from the College, the Financial Aid Office must determine whether a return of Title IV funds is required.
Calculation of earned and unearned aid:
Seth attended 61 of the 112 days in the fall semester.
Seth earned 54.5% of the aid received (61/112).
The amount of aid earned by Seth is $1021.88 ($1875 x 54.5%).
The amount of unearned aid is $853.12 ($1875 - $1021.88).
PVCC's repayment responsibility:
Total institutional charges were $834.91.
Percent of financial aid that was unearned is 45.5% (100% - 54.5%).
PVCC must return $379.88 to the Pell Grant program ($834.91 x 45.5%).
Student's repayment responsibility:
The initial amount of unearned aid Seth must return is $473.24 ($853.12 - $379.88).
The actual amount Seth must pay back is $236.62 ($473.24 x 50%) for Pell plus the amount the College had to return, $379.88. The student's total amount owed is $616.50.
Title IV Funds are returned in the following order:
- Unsubsidized Direct Stafford Loan
- Subsidized Direct Stafford Loan
- Direct PLUS
- Pell Grant
- FSEOG
- TEACH Grant
- Iraq Afghanistan Service Grant
Loan Exit Counseling
If you withdraw or drop below six credit hours after receiving loan proceeds, you must participate in online exit counseling. PVCC will notify you in writing about how to participate.
