The amount of Title IV aid earned is determined by multiplying the total Title IV aid that was disbursed or could have been disbursed to the student's account by the percentage of time during the payment period completed by the student. Title IV aid is viewed as 100% earned after the 60% point of the payment period.

The amount of Title IV funds to return (unearned aid) to the specific federal programs will be determined, using the student's withdrawal date or last date of attendance (unofficial withdrawal), by calculating the percentage of the payment period for which the student did not complete. Scheduled breaks of at least 5 consecutive days are excluded.

The institution must return, in the specified order, the lesser of the total amount of unearned Title IV aid to be returned as calculated or an amount equal to the total institutional charges incurred by the student multiplied by the percentage of unearned Title IV aid.

The student will be responsible for repaying, in the specified order, any remaining portion of the unearned Title IV aid. If the student's portion of unearned Title IV aid is a federal grant(s), the student will be required to return no more than 50% of the amount. Federal Stafford loans will be repaid in accordance with the terms of the loan program as explained in the Master Promissory Note (MPN).

Unearned aid funds are allocated to the Title IV Programs from which the student received assistance in the following specified order of those Title IV Programs at South Arkansas Community College:

  1. Unsubsidized Direct Stafford Loans (other than PLUS loans)
  2. Subsidized Direct Stafford Loans
  3. Direct PLUS Loans
  4. Federal Pell Grants
  5. Federal Supplemental Educational Opportunity Grants
  6. Other Federal Title IV assistance
  7. Other Federal sources of aid

After the institutional refund has been credited in the specified order, any remaining amount will be returned to the student in a post-withdrawal disbursement.

In the event of an official withdrawal, the South Arkansas Community College institutional tuition and fees refund policy will be applied and tuition and fees will be reduced, if applicable. Refer to Tuition Refunds Section of the semester schedules for a more detailed proration table.

The student may be liable for any Title IV Funds disbursed to their account to cover institutional charges in excess of the amount allowed by the Return to Title IV Calculations.  Amounts must be repaid within 45 days of the notification of the overpayment. If no payment is received, holds will be placed on the student's account and the student will lose eligibility for future Title IV aid until such time that the overpayment is paid in full or satisfactory repayment arrangements are made. 


South Arkansas Community College will provide each student with the information given in this policy at the time they accept/decline their award package. It is also provided in the college catalog and on the college's website.

The procedures and policies listed above supersede those published previously and are subject to change at any time. Examples of and worksheets for the Return of Title IV Funds policy may be obtained by contacting the Financial Aid Office.