Federal Return of Title IV Funds Policy

All students receiving federal financial aid (grants or loan funds) who completely withdraw within the first 60% of the quarter are subject to return (repay) a portion of aid that was “unearned” for the enrollment period. If students receiving federal financial aid completely withdraw after 60% of the quarter, the student “earns” all of the aid and will not owe a repayment. Under certain conditions, a student may be eligible to receive a late disbursement in the amount of the earned aid that the student had not received (post-withdrawal disbursement).

The Enrollment Services Office is the official office to initiate the withdrawal process. Up to and including the 4th day of the quarter, students can withdraw using their MySPSCC portal or in person at the One-Stop counter in Building 22 on the Main campus or at the One-Stop desk in building 1 at our Lacey campus through the 8th week of the quarter. After the 4th day of the quarter, students must withdraw in person at either One-Stop location. (Summer term students may withdraw through the 6th week of the quarter.) If withdrawal is due to accident, etc., the withdrawal date is related to the circumstances as determined by the institution. If no notification is received from the student, the withdrawal date is at the 50% point of the quarter. Note: If the student rescinds the withdrawal but does not complete the quarter, the withdrawal date is the original date of withdrawal.

a. The percentage is calculated by dividing the number of days completed in the quarter by the number of calendar days in the quarter (through the 60% of the quarter). The calendar days include weekends and exclude breaks of at least 5 consecutive days. That represents the percentage of “earned aid.” The percentage of the quarter the student did not attend represents the percentage of “unearned aid.” The maximum grant overpayment cannot exceed half of the total Title IV grant funds received by the student.

b. SPSCC returns to the federal aid programs the amount of unearned aid up to the total institutional charges incurred by the student (tuition and fees).

c. SPSCC must return unearned funds for which it is responsible as soon as possible but no later than 45 days after the date of determination of a student’s withdrawal.

d. The student returns (repays) the balance of the unearned funds to SPSCC which is then returned to the federal aid programs (see Repayment section).

e. Any student that owes a repayment of funds will be notified as soon as possible following the Determination Date, but no later than 45 days.

f. SPSCC must return unearned funds for which it is responsible as soon as possible but no later than 45 days after the date of determination of a student’s withdrawal.

To be eligible for a post-withdrawal disbursement, the SPSCC financial aid office must have a completed file before financial aid eligibility can be determined. If the file is complete and as a result of the calculation, the amount of the earned aid is more than has been disbursed to the student, the student is due a post-withdrawal disbursement and will be offered the funds.