Withdrawal and Return of Title IV Funds

Due to the Higher Education Amendments of 1998, Congress passed new provisions governing what happens to your federal financial assistance should you withdraw from all of your classes before completing 60 percent of the semester.

In essence, these provisions maintain that you are not entitled to 100 percent of your federal funds ( Pell Grant, SEOG, Perkins Loans and Stafford Subsidized or Unsubsidized Loans) until you complete a minimum of 60 percent of the semester, which is approximately 9.5 weeks. Of course, the vast majority of students will have received 100 percent of their grants and or loans funds before that time. Therefore, if you receive your funds and withdraw before 60 percent of the term has passed, you will owe a portion of the funds back to the particular program or programs from which they were disbursed.

Any grant money you must repay is considered a Federal Overpayment. You must repay that amount in full or make satisfactory payment arrangements with either Truckee Meadows Community College or the Department of Education. In addition, you must repay or make repayment arrangements within 45 days of the date you are notified of the overpayment or you will lose further eligibility for ALL federal aid for attendance at ANY college until the debt is paid in full.