Financial Aid
Your Rights and Responsibilities
Refund Policy
If a recipient of Title IV assistance completely withdraws (officially dropping all classes or drop out OR does not officially drop classes but no longer attends) the recipient is subject to the Refund/Return of Title IV Funds regulation.
Refunds
When a student receives financial assistance from FSEOG, Stafford Loan, PLUS Loan, and/or Federal PELL Grant, and then completely leaves school, we will calculate the percentage and amount of Title IV assistance the student did not earn and return those funds to the Title IV programs. The statutes specifies that a student is responsible for all unearned Title IV Program assistance that the school is not required to return. (The college returns its portion of unearned funds within 30 days of determining student withdrawal by debiting student's account resulting in an amount due to the college from the student for outstanding balance.)
The student is obligated to return funds to the loan program in accordance with the terms of the loan and to the grant programs as an overpayment. If a student receives less Title IV assistance than the amount earned, we will comply with the procedures for late disbursement specified by the US Department of Education regulations. The refund policy used by the Financial Assistance Office is indeed different from that used by the institution. The formula for calculating the amount of unearned funds is provided to Illinois Central College by the US Department of Education.
Return of Title IV Funds
Students who withdraw completely from classes who are receiving Title IV Financial Aid funds for payment of their institutional charges are subject to a review to determine if there has been an overpayment. If an overpayment exists, a repayment of financial aid funds is required.
The student withdrawal date is determined using one of the following:
- Initiation of an institutional withdrawal by the student
- The date the institution determines the student withdrew (ie: last date of attendance)
Once the date of withdrawal is determined, the amount of earned Title IV aid is calculated using the completion rate for the enrollment period, multiplied by the total aid that was disbursed or could have been disbursed (aid "could have been disbursed" if the student was eligible to receive it at the time he/she withdrew and may receive it under late disbursement rules in 668.164[g]).
Students who withdraw after completing 60% of the enrollment period will be considered to have earned 100% of their Title IV aid. The number of days in an enrollment period is the number of calendar days in the period excluding breaks of five or more days (excludes all days between last day of classes before break and first day classes resume).
Federal Refund Calculation
Amount of Title IV Assistance (Earned & Unearned)
Earned and Unearned
Percent Earned = % of period of enrollment completed as of withdrawal date if occurs before 60% point
· Calendar days completed/total calendar days in period of enrollment
· Adjust for breaks of 5 days or more
· 100% if after 60% point
Percent Unearned =
· Complement of % earned