Students

Return to Title IV Aid

Title IV funds are awarded to a student under the assumption that the student will attend school for the entire period for which the assistance is awarded. Students should understand that changing their class schedule anytime during the semester might alter the amount of financial aid they are eligible to receive.

If a student falls below 6 credit hours and has a student loan the student may no longer be eligible to receive the loan.

Federal regulations state that financial aid is earned by attending class. You have not earned 100% of your financial aid until you have attended more than 60% of the term. If you withdraw before this date, a portion of your financial aid has not been earned.

The unearned portion is equal to the percentage of the term remaining on the date of withdrawal. Your financial aid eligibility will be recalculated based on your actual period of attendance using a specific credit hour-standard term formula. You may be asked to repay a portion of the aid that had been disbursed to you.

If it is found that the student owes part or all of their financial aid back to the Department of Education the College will return that money which will result in the student owing the College. This balance must be paid before future enrollments, graduation or the release of transcripts are allowed. The student will be notified via letter of any Return to Title IV obligations.

The term “Title IV Funds” includes the following programs:

  • Federal Pell Grant
  • Federal Supplemental Educational Opportunity Grant (FSEOG)
  • Federal Direct Subsidized Loan
  • Federal Direct Unsubsidized Loan
  • Federal PLUS Parent Loan

Determining Date of Withdrawal

Your withdrawal date is determined in one of two ways.

If you officially withdraw from the institution, your withdrawal date is the last date of attendance at an academically related activity, as determined by instructor’s attendance records.

An unofficial withdrawal occurs when you stop attending classes, but do not notify the institution of your withdrawal. At the mid-point of each semester, the institution checks for non-attendance. In cases where a student is failing classes at the mid-point of the semester, each instructor will confirm whether the student is still attending class or will provide the last date of attendance for each class. If you have ceased to attend all classes, the latest date of attendance in all classes will be used to determine the withdrawal date.

Repaying of Financial Aid

Once the institution has determined you have either officially or unofficially withdrawn from the institution, we will notify you (the student) within 30 days if you are required to repay a portion of your financial aid for the term. Illinois Central College returns funds within 45 days to the U.S. Department of Education.

In recalculating your financial aid eligibility, we will reduce your financial aid in the following order:

  1. Unsubsidized Direct Stafford loan
  2. Subsidized Direct Stafford loan
  3. Direct PLUS loan
  4. Federal Pell Grant
  5. Federal Supplemental Educational Opportunity Grant (FSEOG)
  6. Iraq and Afghanistan Service Grant

Late Disbursement

If your federal grant and loan funds have not yet been disbursed at the time of withdrawal, a late disbursement of funds will be offered in the following circumstances:

  • The ICC Financial Assistance Office received a valid Student Aid Report/Institutional Student Information Record with an official EFC before you withdrew
  • For a Direct Loan, the loan must have been originated with the U.S. Department of Education prior to your withdrawal
  • For a Direct Loan, a first-time borrower must not have withdrawn before the 30th day of the term
  • For an SEOG grant, the grant must have been awarded prior to the date of withdrawal and all other eligibility requirements

Once notified of your eligibility for a late disbursement, you have seven days to notify the ICC Financial Assistance Office of your decision regarding the late disbursement.

Overpayment

An overpayment occurs when a student has been disbursed more aid than they are eligible to receive. This typically happens when a student changes their enrollment level by dropping classes before the refund date listed in their class schedule AFTER they have already been disbursed their aid.

The student who is in overpayment will be sent a letter informing them of the situation. If an overpayment is not resolved, and if the student does not repay Title IV funds when required, the institution must report the overpayment to the US Department of Education. Owing an overpayment of a federal grant or loan will prevent the student from qualifying for any future Title IV assistance at all colleges.