Refunds for Federal Financial Aid Recipients

Special refund requirements apply to students who receive federal aid that is classified as "Title IV" funds. Title IV funds include awards such as Pell grants, Supplemental Educational Opportunity grants (SEOG), Federal Stafford loans, Perkins loans and PLUS loans, and other federal awards. Students must attend classes to remain eligible for federal financial aid. Students who are considering withdrawing from all classes before completing 60% of the semester should contact Financial Aid Office to learn how this would affect their financial aid.

If a student reduces a course load or withdraws from TSTC, the College and/or the student may be required to return federal funds awarded to the student. The student may be eligible for a refund of a portion of the tuition and fees paid to TSTC for that term. If the student received financial assistance, the refund is returned to the grant, scholarship, or loan sources from which the assistance was received.

A federal formula dictates the amount of Title IV aid that must be returned to the federal government by the College and the student. This formula applies to a student who is receiving Title IV funds if that student withdraws from the College on or before the 60% point in time in the term. The percentage of Title IV aid to be returned is equal to the number of calendar days remaining in the term divided by the number of calendar days in the term. Scheduled breaks of five consecutive days or more are excluded from this calculation.

If any funds are to be returned after the refund of Title IV aid, they are used to repay TSTC funds, state funds, and other private sources. If there is an unpaid balance, then all aid sources are repaid before any funds are returned to the student. Funds released to a student due to a credit balance on the student's account do not relieve the student's obligation to repay Title IV funds when the student withdraws.

The priority for distribution of refunds and repayment is as follows:

• Unsubsidized Federal Stafford Loan
• Subsidized Federal Stafford Loan
• Federal Perkins Loan
• Federal PLUS Loan
• Federal Pell Grant Program
• Federal SEOG Program
• Other Title IV Aid
• Other Federal, State, Private, or Institutional Aid
• The Student.

For more detailed information on the entire refund procedures for Financial Aid students or about the calculation of refund amounts, contact the Financial Aid Office.