Impact of Not Completing My Classes

Return of Title IV Federal Financial Aid Funds

When you receive federal financial aid, you agree to complete your classes. If you do not complete any part of the term, you may be required to repay a portion of the financial aid that paid for your classes. If you officially, or unofficially, withdraw from all classes, repayment of the aid will also be required. The process of returning aid due to one of the above circumstances is a federal law called the Return of Title IV Federal Financial Aid.

An official withdrawal is an instance in which you drop or withdraw from all courses, either online or in person. An unofficial withdrawal is when you stop attending courses or drop out of school without officially notifying the institution resulting in all F grades or a combination of F, U, W and AW grades.

As a student, you must successfully complete all courses for the entire length of enrollment to avoid the Return of Title IV Federal Financial Aid. You could pass one or more courses and still be required to return funds that are intended for a course that you do not pass. 

If CCD is required to report an overpayment of financial aid to the U.S. Department of Education, the student will be required to repay the Department directly before receiving any financial aid at any school.  To repay a grant overpayment, call the U.S. Department of Education at 800.621.3115.

How can I avoid having to pay back my financial aid?

Keep attending all classes.

What steps do I take if I stop attending or withdraw from all classes?

Read communications from CCD. CCD will calculate the amount that must be repaid, based on how many days you attended. The Financial Aid Office will send communications to the mailing address on your file with the amount you must repay. If CCD is required to report to the federal government any grant overpayment, you must repay the overpayment directly to the U.S. Department of Education within 45 days of being notified by CCD. You will be ineligible to receive financial aid at ANY school until the funds are repaid in full.

How can funds be repaid?

Directly to the CCD cashier within 45 days. You are responsible for the entire repayment, which can be made to CCD’s Cashier's Office within 45 days. If the debt is not repaid within the appropriate timeframe, the amount owed will instead need to be repaid directly to the appropriate collection agency. Students are encouraged to speak with the Cashier's Office before the end of the 45 day period to discuss any available payment arrangements. You may email the Cashier's Office or call 303.556.2075.

What if I never attended the courses at CCD?

You are required to repay ALL of the financial aid that paid into your account. If you never attended courses but did not drop or withdraw from your courses, you are considered a "No Show." As such, you are ineligible for financial aid, and 100 percent of the financial aid that paid into your CCD account must be repaid. In addition, if you do not withdraw prior to the published drop date, you are also responsible for 100 percent of your tuition and fee charges (in addition to any repayment of financial aid that paid into your CCD account.

Where does the repayment go?

Back to the aid programs that originally paid. Repaid funds are returned back to the U.S. Department of Education. Repayment of direct loan funds will also reduce your overall loan debt with the Department of Education. Federal regulations require CCD to return federal funds in the following order:

  • Federal Direct Unsubsidized Loan
  • Federal Direct Subsidized Loan
  • Federal PLUS Loan
  • Federal Pell Grant
  • Federal Supplemental Educational Opportunity Grant (FSEOG)

How is the amount I must repay determined?

The return of Title IV funds is determined by the following formula:

  • Total award amount divided by the number of days in the semester times the number of days you attended (not including scheduled breaks)

Repayment Example

A student received a Pell Grant for $2,366 for full-time enrollment (12 credit hours). The student's tuition, fees, and book charges for the term totaled $1,390. The student then withdrew from all of his courses on the 38th day of the term. The length of the term totaled 105 days, so the student completed 38 of 105 calendar days.

Percentage of Earned Title IV Aid 38 / 105 total days 36.2%
Original Pell Grant Awarded   $2,366
Amount of Earned Title IV Aid $2,366 x 36.2% = $856.49
Amount of Unearned Title IV Aid (to be returned) $2,366 - $856.49 = $1,509.51
Institutional Charges Incurred by the Student   $1,390.00
Percentage of Unearned Title IV Aid 100% - 36.2% = 63.8%
Institutional Unearned Charges $1,390 x 63.8% = $886.82
Amount of Pell Grant Amount Owed by CCD   $886.82
Amount Student Must Repay to CCD   $886.82
Unearned Aid - (minus) CCD Unearned Charges $1,509.51 - $886.82 = $622.69
Title IV Grant Protection $2,366 x 50% = $1,183.00
Additional Amount Student Must Repay Dept of Ed. $622.69 - $1183.00 = $0 (negative amount = 0)