Important New Rules for Financial Aid Recipients Who Completely Withdraw From ALL Classes, or who stop attending and get all F grades for the semester.
 

Are You Thinking About Withdrawing From All Your Classes?  

It will be VERY EXPENSIVE!

If you have a Federal Loan, Federal Pell, Federal SEOG, you will owe big $$

Withdrawals could prevent you from getting any more aid in the future.

It would be better to get grades of "D" than to get all W or combinations of F and W.

or

It would be better to pass at least ONE class rather than withdraw from all of them.  Completing just ONE class will keep you away from the Return of Title IV requirement.
 

Also, if you decide to stop attending and never notify the college, you will also be subject to the calculations on this page.   Students who get all final grades of F, U, or W will be subject to provisions of return of Title IV (Federal Grants and Loans) aid.

For example: Jimmy received a Pell Grant in the amount of $2,000 for the 2004 fall semester. She registered for 15 credit hours, which cost $966.75 and purchased the necessary textbooks, which came to $310.75. Her total institutional charges for the semester are $1,277.50, which include book charges. On September 17, 2004 Jimmy received her financial aid balance check in the amount of 722.50 that she can use for other related educational expenses throughout the semester. However, on October 19, 2004 Jimmy’s work scheduled changed and she had to withdraw from all of her classes. Since Jimmy has totally withdrawn from college the Financial Aid Office must determine if a return of Title IV funds is required.

Financial Aid Office Calculation:

Jimmy received a total Pell Grant disbursement of $2,000

Jimmy withdrew from JSRCC after attending 60 out of the 114 days of the fall term.

Jimmy has earned 52.6% of the aid received (60/114)

Amount of aid earned by Jimmy is $1,052 ($2,000 X 52.6%)

Amount of aid that must be returned is $948 ($2,000 - $1,052)

Total Institutional Charges were $1,277.50

Percent of Financial Aid Unearned was 47.4% (100% - 52.6%)

Total aid that must be returned to the Pell Grant Program from JSRCC is $605.54 ($1,277.50 X 47.4%)

Initial Amount of unearned aid that must be returned from Jimmy is $342.46 ($948 - $605.54)

Amount of financial aid that Jimmy must pay back the government is $171.23 ($342.46 X 50%)

Amount of financial aid that Jimmy must pay back the college is $605.54.

Jimmy owes a total of  $776.77. 

Jimmy will be notified within 30 days of her overpayment and will be instructed to contact the U.S. Department of Education Collections Department to arrange a suitable repayment agreement. The institution (JSRCC) will obligate the student for the amount that the College had to return to the U.S. Department of Education.

Part of the amount you would owe back would be repaid to the college in the form of tuition and part would be repaid to the federal government to refund the financial aid program(s) from which you received funds.  If you did not pay back the portion that must go back to the federal government, you would be reported to the federal government and you would not be eligible to receive financial aid at any institution in the country from that point forward until the funds were repaid.