FINANCIAL AID: Students who withdraw may have to pay Uncle Sam
By Mandy Graceie
Apache Staff
Whether to withdraw from college may seem to be a choice based on the person’s preferences and needs. For students receiving federal financial aid, however, the choice is no longer that simple.
Any student on federal aid who withdraws, or simply doesn’t attend all classes between the 10th day of classes and 60 percent of any given semester (Oct. 31 this semester), may be responsible for repayment of a percentage of that aid. A 1998 amendment to the Higher Education Act of 1965 requires the repayment for students who stop attending classes, whether they officially withdraw or not.
Financial Aid Director Paul Crawford said if a student withdraws or stops attending before 60 percent of the term has ended, the college and the student will be required to return a portion of the aid distributed for tuition and fees. For the spring semester the date when 60 percent of the term has been completed in April 2, 2001.
The college will determine what percent of the semester the student has completed and will issue a bill for the amount of funds to be repaid to the college.
If a student completes 40 percent of the semester, IVCC must return 60 percent of the student’s aid to the U.S. Department of Education.
For a student who received $1,000 in aid for tuition and fees, the college would have to return $600. The student would then be required to reimburse IVCC for the $600.
Crawford said students will also be required to pay back a portion of financial aid disbursements that were paid directly to them. For example, if a student received $1,500 for a Federal Pell Grant, and used $1,000 for tuition and fees, the other $500 was paid directly to them. The student would then be required to pay back a portion of that direct payment.
“It won’t affect every financial aid student the same way because each individual student receives different amounts of aid based on their available income,” Crawford said. “For that reason I don’t approve of the changes which will target students with low income who receive larger amounts of aid with little or no means of repayment.”
Crawford said Congress adopted the policy to deter students and schools from abusing the financial aid program by requiring that students earn their aid or face repayment penalties.
Students who fail to return funds to IVCC will be barred from attending future classes and will have transcripts withheld. Students who fail to return funds to the U.S. Department of Education will be barred from receiving financial aid at all U.S. colleges until the debt is repaid or they have established a repayment program.
Crawford urged students to speak to a financial aid counselor before withdrawing from school.