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Procedure VI.6001.A.c, Return of Title IV Funds

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Associated Policy

Policy VI.6001.A, Financial Aid

Procedures

If a student withdraws from San Jacinto College, the College, the student, or both may be required to return some or all of the federal funds awarded to the student for that semester. The federal government requires a return of Title IV federal aid that was received if the student withdrew on or before completing 60% of the semester. Federal funds, for the purposes of this federal regulation, include Pell Grant, Federal Supplemental Educational Opportunity Grant, Federal Direct Unsubsidized Loans, Federal Direct Subsidized Loans, and Parent PLUS Loans. The formula used in this federal "return of funds" calculation divides the aid received into earned aid and unearned aid.

Definitions

Pell Grants: use a standard formula set by Congress to determine a student’s level of need. The formula produces an Expected Family Contribution (EFC), the amount a family should pay toward the cost of the education. The amount of aid received is based on the EFC and the number of college hours attempted by a student. 

Federal Supplemental Educational Opportunity Grants (FSEOG): are given based on the availability of funds and are only awarded to undergraduate students with exceptional financial need. Priority is given to students who receive Federal Pell Grants. Students must be enrolled in at least 6 semester credit hours to receive a disbursement from the award.

Federal Direct Unsubsidized Loans: are available to students who need additional assistance, and students do not have to demonstrate financial need to get an unsubsidized loan. These loans charge interest immediately until they are paid off.

Federal Direct Subsidized Loans: are low interest, long-term loans funded by the federal government for students who demonstrate financial need. Students are not charged interest before repayment begins or during authorized deferment periods. The government “subsidizes” the interest while students are enrolled at least half-time, which is six credit hours.

Parent PLUS Loans (Parent Loans to Undergraduate Students): are a credit-based loan available to parents to help their children pay for college.  These loans are not to exceed the cost of attendance, minus any other financial aid awarded to the students. These loans are only available to parents of dependent students.

Earned Aid: refers to the amount of financial aid based on the number of days a student has attended classes with a term.

Unearned Aid: refers to the amount of financial aid based on the remainder of days a student has not attended classes within a term.  

Date of SLT Approval

February 21, 2018

Effective Date

April 3, 2018

Associated Policy

Policy VI.6001.A, Financial Aid

Primary Owner of Policy Associated with the Procedure

Deputy Chancellor & President

 

Secondary Owner of Policy Associated with the Procedure

Associate Vice Chancellor, Student Services