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Return of Federal Title IV Funds


North Central Texas College refunds unearned funds received from Federal student assistance programs in accordance with Federal Title IV student assistance regulations, as amended, under 34 CFR, section 668.22(d) of the Reauthorization of Higher Education Act of 1965, with rules of the Texas Higher Education Coordinating Board, and the rules of the college's Board of Regents.

The student receiving assistance from Federal Title IV programs is required to complete a minimum number of hours for which assistance was received. If the student completely withdraws from school during the semester, or quits attending but fails to officially withdraw, the student may be required to return the unearned part of the funds received to help pay educational expenses for the term. Liability for the return of Federal Title IV funds will be determined according to the following guidelines:

  • If the student remains enrolled and attends class beyond the 60% mark of the semester in which aid is received, all federal aid is considered earned and not subject to this policy.
  • If the student completely withdraws from all classes prior to completing 60% of the semester, a prorated portion of the federal aid received must be returned to the federal aid programs based on the amount of time the student attended.
  • If the student does not officially withdraw from classes but quits attending all classes, a prorated portion of the federal aid received, based on the documented last date of attendance, must be returned to the federal programs. If the college is unable to document the last date of attendance, the school will assume the student only attended to the 50% mark of the semester and this date will be used to determine how much aid must be returned.

Return of Federal Title IV funds will be distributed according to statutory regulations. Worksheets provided by the U.S. Department of Education will be used to determine the amounts and order of return. The student will be notified and will be allowed 45 days from the date of determination to return their share to the program accounts. If the student does not return the amount owed within 45 days, the amount of the overpayment will be reported to the U.S. Department of Education (DOE) via the National Student Loan Database (NSLDS) and the student will be referred to the DOE for resolution of the debt. Contact Financial Aid for questions and examples of this policy. See the Return of Title IV Aid Policy in the NCTC Catalog for additional information.