Financial Aid Refund Policy (Return of Title IV Funds)
If a student withdraws or OTC withdraws or dismisses them, the Federal government may require the school or the student to return some of the Federal Student Aid funds awarded. Students may also be eligible for a refund of a portion of the tuition and fees paid to OTC. If the student received financial assistance other than Federal funds, OTC may refund a portion to the program from which the student received assistance.
Financial Aid will identify Title IV recipients who withdrew and refund aid to comply with Federal regulations. These programs may be the following: Federal Pell Grant, Federal Supplemental Educational Opportunity Grant and Federal Stafford Loans.
If a student withdraws (or stops attending classes) from the college at any time during the semester, the Federal government may require the student to repay a portion of the grant or loan aid received. Financial Aid calculates the amount of repayment due based on the student’s last day of attendance. OTC will return repayments from students to the programs from which the student received funds. The U.S. Department of Education requires this.
If a student wishes to withdraw, the student should contact Student Services and complete a withdrawal form to begin the withdrawal process. This procedure will enable OTC to properly calculate a refund in order to refund the maximum possible institutional charges. The date used when calculating the refund will be the last date of attendance documented by the college.
If required, the student should turn in all items needed for verification at the time of withdrawal. However, OTC must receive them but no later than fourteen calendar days from the date of the withdrawal. Financial Aid will review the documents provide the financial aid the student is eligible for.
All students who enroll and are Federal financial aid recipients must attend all classes for which they enroll. Dropping classes could result in a repayment obligation. If you fail to attend one or more of your classes and do not officially withdraw, the Federal government may still require you to repay some or all of your financial aid.
If a student stops attending all classes before completing at least 60% of the semester, they will probably owe money back to the federal financial aid program(s). Students make repayment to Federal programs based on the U.S. Department of Education Return of Title IV funds formula.
-Financial Aid Refund Policy (Return of Title IV Funds)