Return to Title IV Procedures
Federal regulations require that students must attend their classes to be eligible for funds. Colleges must perform "return of funds" calculations for each student receiving federal aid who stops attending all classes before the end of the term. Students whose last date of attendance is on or before the 60% point of the term are subject to have an overpayment of aid because they did not attend long enough to "earn" the funds awarded for the term. Federal financial aid regulations specify how Isothermal Community College must determine the amount of Federal Student Aid (FSA) assistance a student has earned if they withdraw from school. The FSA programs that are covered by this law are: Federal Pell Grants, and Federal Supplemental Educational Opportunity Grants (FSEOG).
In addition to having to repay funds directly to the aid program, the student will have to repay the College for the amount of institutional charges (tuition, fees, etc...) the college is required to return to the Department of Education. Future enrollment and aid eligibility are contingent upon proof of repayment. In the case of Pell overpayments, a letter of reinstatement of Title IV eligibility from the Department of Education is required.
In some instances, the Financial Aid Office is required to return state funds, such as NC Community College Grant (NCCCG) and NC Education Lottery Scholarship(NCELS), to the College Fuondation of North Carolina, Inc. (CFI). If the student ceases enrollment and has received one or both of these grants, this could result in the student owing a portion of these funds back in addition to their R2T4 amount.