Return of Funds

A student’s official withdrawal date of determination for the return of Title IV calculation will be:

• 1. The date the student provides notification to the Admissions & Records Office that he or she intends to withdraw, or
• 2. The date posted by the instructor indicating the student’s last date of attendance in class.

West Valley College (WVC) is not required to take attendance. Therefore, if the student has failed to earn a passing grade in any class and the West Valley Financial Aid (WVFA) office is unable to determine the last date of attendance, WVFA will use the 50% point of the period of enrollment as the withdrawal date.

Students who receive federal financial aid must remain in their registered classes to “earn” the aid they originally received. The amount of federal aid earned is based on a pro‐rated formula. Students who withdraw or do not complete all classes in which they were enrolled may be required to return some of the aid originally awarded to the student.

Institutions, in accordance with federal regulation 34 CFR 668.22, are required to determine the percentage of federal aid “earned” and return the “unearned” portion to the appropriate federal aid programs. The following explains the formula used to determine the percentage of unearned aid to be returned to the federal government:

• The percentage earned is equal to the number of calendar days completed up to the student’s withdrawal date divided by the total number of calendar days in the period of enrollment.
• Breaks of 5 days or more are not included in the count of total days in the period of enrollment.
• For unofficial withdrawal, the 50% point of the period of enrollment is used as the withdrawal date.

This calculation must be performed within 30 days of the date the school determines that a student has completely withdrawn or after the official grades are posted. The institution must return the unearned funds within 45 days of the calculation. When calculating the percentage the student completed in the period of enrollment, if a student attended more than 60% of the period of enrollment, the student is considered to have earned 100% of the Title IV funds the student was scheduled to receive during that period.

A post‐withdrawal disbursement may be required if the total amount of the Title IV aid earned as of the withdrawal date is more than the amount that was disbursed to the student. To be eligible to receive a post‐ withdrawal disbursement, students must have a complete financial aid file (verification completed and all tracking requirements satisfied) and meet all eligibility requirements.

1. Grant PWD
   1. Grants from a PWD may be credited to the student’s school account without obtaining student permission. However, it may only be credited for tuition/enrollment fee, or mandatory fees or disbursed directly to the student. WVC must obtain the student’s signed authorization to credit a student’s school account for charges other than current charges.
2. Loan PWD
   1. A school must notify a student, or parent for a Direct Parent PLUS Loan, in writing prior to making any post-withdrawal disbursement of loan funds, whether those loan funds are to be credited to the student’s account or disbursed directly to the student (or parent). The information provided in this notification must include the information necessary for the student, or parent for a Direct Parent PLUS Loan, to make an informed decision as to whether the student or parent would like to accept any disbursement of loan funds and must be provided within 30 days of the date of a school’s determination that a student has withdrawn. In addition, the notice must request confirmation of any post-withdrawal disbursement that the student or parent, as applicable, wishes the school to make.
3. For any amount of a post-withdrawal grant disbursement not credited to the student’s account to cover allowable charges, the school must make the disbursement as soon as possible but no later than 45 days after the date of the school’s determination that the student withdrew (no confirmation from the student is required).
4. A school may not delay its disbursement processes while it ascertains whether a student wishes to receive the grant funds he or she is entitled to. However, while the school is processing the disbursement or notifying the student about his or her eligibility for a post-withdrawal disbursement of grant funds, the school may, at its discretion, notify the student that it may be beneficial to turn down all or a portion of the grant funds to preserve grant eligibility for attendance at another institution. Of course, if the student independently contacts the school and states that he or she does not wish to receive a grant disbursement, the school is not required to send it.

1. Students who owe the U.S. Department of Education for an overpayment of Title IV funds are not eligible for any additional federal financial aid until the overpayment is paid in full or payment arrangements have been made with the U.S. Department of Education.
2. Students who owe WVC because of an R2T4 calculation will be placed on a financial hold. Students will not be allowed to register for subsequent semesters or receive academic transcripts until the balance is paid in full or until payment arrangements have been made.
3. In addition, at the time the R2T4 calculation is completed, if the student received Federal Direct Loans, WVFA will notify students of the federal Loan Exit Counseling requirements.

Download Return of Title IV (R2T4) Policies and Procedure.