Federal Financial Aid (Title IV) Refund Policy
Earning Financial Aid
Federal regulations state that financial aid is earned by attending class. You have not earned 100% of your financial aid until you have attended 60% of the term. If you withdraw before this date, a portion of your financial aid has not been earned.
The unearned portion is equal to the percentage of the term remaining on the date of withdrawal. Your financial aid eligibility will be recalculated based on your actual period of attendance - you may be asked to repay a portion of the aid that had been disbursed to you.
Determining Last Date of Attendance
Your last date of attendance is determined in one of two ways.
If you officially withdraw from the institution, your last date of attendance is date you began the withdrawal process or notified the institution of your withdrawal.
An unofficial withdrawal occurs when you stop attending classes, but do not notify the institution of your withdrawal. At the mid-point of each semester, the institution checks for non-attendance. In cases where a student is failing classes at the mid-point of the semester, each instructor will confirm whether the student is still attending class or will provide the last date of attendance for each class. If you have ceased to attend all classes, the latest date of attendance in all classes will be used to determine the withdrawal date.
Repaying of Financial Aid
Once the institution has determined you have either officially or unofficially withdrawn from the institution, we will notify you (the student) within 30 days if you are required to repay a portion of your financial aid for the term. Heartland Community College returns funds within 45 days to the U.S. Department of Education.
In recalculating your financial aid eligibility, we will reduce your financial aid in the following order:
- Unsubsidized Direct Stafford loan
- Subsidized Direct Stafford loan
- Direct PLUS loan
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- Iraq and Afghanistan Service Grant
If your federal grant and loan funds have not yet been disbursed at the time of withdrawal, a late disbursement of funds will be offered in the following circumstances:
- The financial aid office received a valid Student Aid Report/Institutional Student Information Record with an official EFC before you withdrew
- For a Direct Loan, the loan must have been originated with the U.S. Department of Education prior to your withdrawal
- For a Direct Loan, a first-time borrower must not have withdrawn before the 30th day of the term
- For an SEOG grant, the grant must have been awarded prior to the date of withdrawal
Once notified of your eligibility for a late disbursement, you have seven days to notify the Financial Aid Office of your decision regarding the late disbursement.
We are here to help you through this process. Contact our financial aid officers to help you with any questions.