Withdraw Information

Return of Title IV Funds

These rules govern the return of Title IV funds disbursed for a student who completely withdraws from a term, payment period or period of enrollment. These federal guidelines assume that a student earns his or her aid based on the period of time he or she remains enrolled. Unearned Title IV funds, other than federal work study, must be returned to the federal government. During the first 60 percent of the enrollment period, a student “earns” Title IV funds in direct proportion to the length of time he or she remains enrolled. A student who remains enrolled beyond the 60 percent point earns all his or her aid for the period. If earned aid exceeds disbursed aid, additional funds may be disbursed to the student in the form of a late disbursement. Additional disbursements are not permitted if the amount of earned aid is less than the total Title IV aid that was disbursed prior to the institution’s determination that the student withdrew.

Repayment of Unearned Aid

The responsibility to repay unearned aid is shared by the institution and the student in proportion to the aid each is assumed to possess. The institution’s share is the lesser of the total amount of unearned aid or the institutional charges multiplied by the percentage of aid that was earned. The student’s share is the difference between the total unearned amount and the institution’s share.
The institution’s share is allocated among the Title IV programs, in an order specified by statute, before the student’s share. After the student’s share is fully allocated among the Title IV programs, students only owe grant overpayments if the overpayment exceeds 50% of the Title IV grant aid is received. Students are not required to return grant overpayments of $50 or less.
Refunds and repayments will be distributed to the appropriate Title IV, HEA programs in the following order:
1.   Federal Unsubsidized Stafford Loan
2.   Federal Subsidized Stafford Loan
3.   Federal Pell Grant
4.   Federal SEOG Grant              
5.   Other Title IV assistance
6.   Other state, private or institutional aid
7.   Student

Post-withdrawal Disbursements of Aid

A student who earned more aid than was disbursed prior to withdrawal could be due a post-withdrawal disbursement. Disbursements must be made from available grant funds before loans. SPC may credit grant disbursements toward unpaid institutional charges for the current year charges only. SPC will contact a withdrawn student prior to making a post-withdrawal disbursement of loan funds. SPC will explain the student’s obligation to repay the funds and confirm that the loan funds are still required by the student. Students will be encouraged to cancel the loan. SPC will document the student’s decision in their file. Any portion of a post-withdrawal disbursement not credited to the student’s account will be offered (in writing or electronically) as a cash disbursement to the student within 30 days of the withdrawal date. The student has 14 calendar days to respond to the Financial Aid Office. SPC will return the post-withdrawal disbursement to the Department of Education if no response is received from the student or parent (in the case of a Parent Plus Loan), or funds are declined by the student or parent, or response is not received within the 14-day time frame. An eligible student, who withdraws from SPC prior to completing their file, should check with the Office of Financial Aid to determine if they would qualify for a Post-withdrawal Disbursement once the file is complete.

Determination of Withdrawal Date

The withdrawal date is the date the student began the institution’s withdrawal process or officially notified the institution of intent to withdraw (oral or written); or the mid-point of the period for a student who leaves without notifying the institution. The withdrawal date can also be the last day of the student’s class attendance or participation from the instructor, if provided. If not provided, the mid-point of the period will be used as the withdrawal date. If a student left without notification because of circumstances beyond the student’s control, the institution may determine a withdrawal date related to these circumstances. Written notification to the Admissions and Records Office is required in order for the withdrawal request to be honored.
For students who have all grades of F or combination of grades of F, X and W, South Plains College, as per federal regulations, will assume that the student has unofficially withdrawn; and a Return of Title IV funds will be calculated. The withdrawal date for grades of F and X will be the student’s last day of class participation, by the instructor, or the mid-point of the semester if the 1st day of attendance/participation is not provided. Grades of W, which are initiated by the student, will carry the appropriate date on the computer and the Financial Aid Office will use that date. In the case of a student who has a combination of F, X and W grades in the same semester; the Financial Aid Office will use the latter date.
Students will receive a statement from the Business Office detailing the amount that the student owes the Business Office due to SPC returning unearned aid to the federal program(s). A Hold will be placed on the student records at SPC at this time. Students should make payment arrangements with the Business Office to avoid being turned over to a collection agency. If the student also owes the Financial Aid office a portion of unearned aid, the student will receive a letter from the Financial Aid office with the amount due.

Payment Arrangements and Payments

Students may not register for SPC classes or receive an official transcript until the Business Office debt has been paid in full. Students who wish to make payment arrangements with the Business Office, should contact the Business Office for further details to avoid being turned over to a collection agency.
Payments should be made in the form of a money order and be sent to the following location(s):
South Plains College                       
Business Office                                
1401 College Ave, Box A                
Levelland, TX 79336                        
(806) 894-9611 ext. 2404              


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