Refund and Repayment Policy for Financial Aid Recipients

Federal regulations require Danville Community College to have a written policy for the return of federal (Title IV) financial aid by students who withdraw during a term for which federal financial aid was awarded.  This policy applies to all financial aid recipients who withdraw from the College, are dismissed from the College, or who stop attending before completing 60% of the enrollment period.  Title IV programs subject to this policy are Federal Pell, Federal SEOG, and Federal Stafford Loans.

 

 Refund Policy

The amount of a refund of fees for students who withdraw will be calculated as outlined in the DCC Catalog and Student Handbook.

 

 Repayment Policy

Financial aid recipients are required to attend all classed in which they enroll.  Students who fail to begin attendance are not eligible to receive any portion of the financial aid awarded and will be required to repay all financial aid funds used for tuition, fees, or bookstore charges as well as any cash received for the non-attended course/s.

 A student’s enrollment status at the end of the drop/add period determines the student’s financial aid for the term.  Students who stop attending should withdraw from the College following official withdrawal procedures as outlined in the College Catalog.

 Date of Withdrawal

 Students who withdraw from the College before 60% of the term has elapsed will have to return any funds that were disbursed but not earned as of the date of withdrawal.  For students who are dismissed or who stop attending without giving notice of having withdrawn, i.e., who do not follow official withdrawal procedures, the withdrawal date will be the midpoint of the period or the date the student last attended an academic function at the College.

 

 Financial Aid Office Calculation

  1. Percentage of Aid Earned = # Calendars Days Completed  / # Calendar Days in Term

  2. Aid Earned = Amount of Aid for the Term x Percentage Earned (See 1.)

  3. Percentage Unearned = 100%  - Percentage Earned (Calculated in 1.)

  4.  Aid Unearned = Total Aid for the Term x Percentage Unearned (See 3.)

  5. The College determines the amount to be returned by comparing total aid earned to total amount disbursed.  If aid earned is greater than the amount disbursed, the student is eligible for a post-withdrawal disbursement.  If aid earned is less than the amount disbursed, the difference must be returned. 

  6.  The College must return the lesser of
      a)     Percentage Unearned x Total of Tuition, Fees, Bookstore Charges

OR

            b)    Total Amount Unearned.

    7.   The student must return

                Total Amount Unearned – Amount returned by the College
                Except, the student is only responsible for returning 50% of this amount

 

 Repayment by the College

The College returns unearned funds that are repaid by the College or the student to the financial aid programs in the following order:

Unsubsidized Federal Stafford Loans
Subsidized Federal Stafford Loans
Federal Pell Grant
Federal SEOG Grant
Other grant or loan assistance authorized by Title IV of the Higher Education Act

 

 Repayment by the Student

 The student has 45 days after being notified of the repayment obligation to return the funds.  If unable to pay, the student may contact the U. S. Department of Education, Department of Debt Collection at 1-800-868-1810 to enter into a repayment agreement which will permit the student to maintain eligibility for financial assistance while making agreed upon payments on the debt.  Failure by the student to pay or provide proof of a repayment agreement within 45 days of being notified of the requirement to repay will make the student ineligible for any further assistance.

 

 Post-Withdrawal Disbursement

 If it is determined that the student is eligible for a post-withdrawal disbursement, the College  is entitled to subtract from the post-withdrawal disbursement amount any outstanding charges due to the College by the student. 

 

 Students who consider withdrawing from all classes as well as students who are just not attending their classes are advised to come to the Financial Aid Office for a calculation of their expected return of federal funds.

 

Contact Information:

Financial Aid Office
1008 South Main Street
Danville, VA  24541
DCCFinAid@dcc.vccs.edu
Telephone: 434 797-8567 or 434 797-8439
Other areas in VA: 800-560-4291 Ext 8567

 

1008 South Main St., Danville, VA 24541  |  434.797.2222  |  434.688.0136 (vp)  |  FAX: 434.797.8541  |  Toll-Free: 1.800.560.4291
 Danville Community College promotes and maintains educational and employment opportunities without regard to race, color, sex, ethnicity, religion, gender, age (except when age is a bona fide occupational qualification), disability, national origin, or other non-merit factors. Danville Community College prohibits sexual harassment including sexual violence.