NORTHEAST ALABAMA COMMUNITY COLLEGE
RETURN OF TITLE IV STUDENT FINANCIAL AID FUNDS FOR WITHDRAWALS
Sec. 484B, 485(a)(1)(F), 34 CFR 668.22
The Higher Education Amendments of 1998,
Public Law 105-244
The Higher Education Amendments of
1998, Public Law 105-244 changed substantially the way funds
paid toward a student’s education are to be handled when a
recipient of Student Financial Aid Program funds withdraws from
Up through the 60% point in each
payment period or period of enrollment, a pro rata schedule is
used to determine how much Student Financial Aid (SFA) Program
funds the student has earned at the time of withdrawal. After
the 60% point in the payment period or period of enrollment, a
student has earned 100% of the SFA Program funds.
Calculation of Amount of SFA
Program Assistance Earned
The amount of SFA Program assistance earned by the student is
determined by multiplying the percentage of the payment period
completed by the total amount of SFA Program
assistance that was disbursed or that could have been disbursed
for the payment period or period of enrollment as of the day the
Percentage of the Payment Period
orPeriod of Enrollment Completed
The percentage of the payment period or period of enrollment
completed is the total number of calendar days in the payment
period or period of enrollment for which the assistance is
awarded divided into the number of calendar days completed in
that period as of the day the student withdrew.
Disposition of Differences between
Amount Earned and Amount Received
If the student receives less SFA Program assistance than the
amount earned, the school must comply with the procedures for
late disbursement specifi ed by the Department in regulations.
If the student receives more SFA Program assistance than the
amount earned, the school, or the student, or both, must return
the unearned funds as required, and in the order specified,
Return of Unearned SFA Program
Northeast Alabama Community College must return the lesser of:
• The amount of SFA Program funds that the student does not
• The amount of institutional costs that the student incurred
for the payment period or period of enrollment multiplied by the
percentage of funds that was not earned.
• The student must return or repay, as appropriate, the
remaining unearned SFA Program grant funds.
• The student must return 50 percent of grant funds over
Method of Return of Funds by the Student
Grant overpayments are subject to repayment arrangements
satisfactory to the school, or overpayment collection procedures
prescribed by the Secretary of Education.
Order of Return of SFA Program
• Federal Pell Grants for the payment period for which a return
of funds is required.
• Federal Supplemental Educational Opportunity Grants (FSEOG)
for the payment period for which a return of funds is required.
• Other assistance under this Title for which a return of funds
Northeast Alabama Community College
students who register for classes, benefit from Title IV student
financial aid and then withdraw are subject to the withdrawal
policy as stated in the Higher Education Amendments of 1998.
Students who do not repay will be
reported to the Federal government for collection.