Returning Unearned Federal Funds
Clark State College is responsible for returning unearned Title IV funds for which we are responsible for within 45 days of the date it determined the student withdrew.
If a student or parent PLUS borrower has unearned Title IV loan funds to return, the funds must be repaid according to the terms of the promissory note.
Clark State College is required to notify the student that they have 45 days in which to repay any unearned grant funds in full or to enter into a satisfactory repayment agreement with the school or Department of Education.
Repayment arrangements with the school.
The school has the option of entering into a repayment agreement with the student. If this occurs, the student must agree to repay the overpayment amount under arrangements that are satisfactory to the school and repay the overpayment within two years of the date the school determined that the student withdrew.
Referral to Department of Education.
The school can decide not to enter into a repayment agreement with the student, in which case, the student’s overpayment must be referred to ED. If the student does not repay the overpayment in full or does not enter into a satisfactory repayment arrangement with the school or ED, on day 46 the student loses Title IV eligibility. Likewise, if the student fails to meet the terms of a repayment agreement with the school, the student loses her Title IV eligibility and the school must report the overpayment to the National Student Loan Data System (NSLDS).
The requirements for refunds and repayments of Title IV program funds when you withdraw are separate and different from any Clark State tuition refund policy. The institutional refund policy determines the amount of tuition and other charges owed to the college and has no impact on the Return of Title IV funds calculation. Therefore, you may still owe funds to Clark State to cover unpaid institutional charges.