Student notification of repayment
A notification letter outlining the amount returned to the federal and institutional program(s) along with the federal government’s repayment worksheet will be mailed to the student’s permanent address. CCC will return funds on the student’s behalf to the appropriate federal and institutional aid program(s) and subsequently will bill the student’s account. A statement reflecting these charges will be sent to the student. The student is responsible for all charges and overpayments resulting from a Return of Title IV calculation.
Federal regulations and Institutional policy require that the following aid programs be subject to the repayment calculation if the student did not attend 60% and will be returned in this order:
- Federal Direct Loans: Unsubsidized and Subsidized
- Federal Direct Parent PLUS Loans
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- Institutional Grants and Scholarships
School and student responsibility for return of unearned federal funds
The student and the school are both responsible for returning unearned federal financial aid to the federal government. The student will be billed for any amount due as a result of the return of federal aid funds (R2T4) calculation.
Overpayment of federal grant funds
Federal regulations provide that 50% of the unearned amount of all federal grants is protected by the federal calculation (see steps 9 and 10 of the federal government’s repayment worksheet). Any grant amount subject to repayment will be billed to the student’s account as an overpayment. Upon receipt of payment from the student, CCC will return the funds to the appropriate grant program(s).
Repayment of unearned funds
The CCC Business Office will notify students if they owe federal funds back to the U.S. Department of Education (ED). Amounts that must be returned by the student will first be applied to federal loans. The student/parent will be permitted to repay loans based on the terms of the Master Promissory Note (MPN) which usually consists of scheduled payments to the holder of the loan over a period of time. Any grant overpayment the student has to return to the federal government must be repaid within 45 days after the student receives notification from the CCC Business Office. If the grant overpayment cannot be paid in full, a repayment plan may be arranged with the U.S. Department of Education.
Students will also receive notice from the CCC Business Office regarding repayment of institutional funds. If the student owes any money to the CCC resulting from the return of federal or institutional funds, the student will be billed by the CCC Business Office.
Consequences of non-repayment
If a student does not repay the grant funds that are owed to the government within 45 days, the account will be turned over to the U.S. Department of Education (ED) as an overpayment of federal funds. Students who owe an overpayment of Title IV funds are ineligible for further disbursements from federal financial aid programs at any institution until the overpayment is paid in full or payment arrangements are made with the U.S. Department of Education.
If a student does not pay funds due to CCC to cover their balance, the student’s records will be placed on financial hold. This means he/she will not be permitted to register for classes or receive transcripts until the balance is paid.