Withdrawal/Repayment Policy

Table of Contents

Withdrawing & Financial Aid
Official Withdrawals
Unofficial Withdrawals
Administrative / Medical Withdrawals
Aid for Eligible Classes
The Return of Title IV Funds
Examples of Return Calculations
Repayment Policies

 


Financial Aid recipients are strongly encouraged to read and understand the withdrawal policy. It is important that students are aware of their financial responsibility in the event that their enrollment status should change. Students planning to withdraw from all classes should contact the Financial Aid Office to see how the withdrawal will affect their financial aid status, and whether repayment is due. Financial aid is paid to students based on their participation in current or anticipated classes within that semester. However, there are occasions when unforeseen events occur in a student's life that may result in withdrawal from college. If this occurs, it is essential that you know the policies and follow the proper steps for withdrawal.

Financial aid pays after the census date (14th day) of the first part of term (semester) in which a student’s classes begin. This is based on class enrollment in which instructors have confirmed attendance. Aid will not pay towards current eligible classes until you are actually participating and instructors have verified engagement in the course. Aid does pay in advance for classes that are registered for following the census date. Prior to the census date, aid will authorize (show as pending) based on your total eligible registration, or the eligible classes for which you are being billed (including classes that start at a later date).  If enrollment changes during the first 14 days of class, prior to the census date, aid will be adjusted accordingly – regardless of whether or not there is any refund of tuition & fees.  Students are responsible for any balance on their account created by the enrollment change.

Aid eligibility is recalculated at the 2nd census date, or the 14th day of the 2nd 7-week session. At this time, aid payments can be increased for classes added after the 1st census date (if scholarships, grants, or loans have not yet paid out at the maximum amount for the payment period). If the number of eligible credit or clock hours has been reduced as of the 2nd census date, then aid payments are removed or adjusted. This could be due to 2nd session courses being dropped (no record and full refund of tuition & fees) or no longer meeting eligibility requirements. Also, aid payments cannot be increased if the overall number of credit/clock hours in which a student will be participating does not increase.

  • Example 1: at the 1st census date, a student is registered for 12 credit hours – 2 classes begin at the start of the semester, and 2 classes begin in the 2nd session. Aid pays in advance at 100% for all 12 eligible credit hours and any appropriate refunds of excess aid are issued. At the 2nd census date, the student has dropped 1 of the 2nd session classes (3 credit hours) and received 100% refund of tuition & fees for the class. Since the student is now enrolled in 9 eligible credit hours, aid payments are reduced by 25% to the payment(s) for three-quarter time enrollment. A balance may be owed, even with the refund of tuition & fees.
     
  • Example 2: a student is registered and participates in 2 classes, totaling 7 credit hours, that begin at the start of the semester and is paid for half-time enrollment. The student withdraws from 1 of those classes later in the semester (after it is paid for) and adds a different class in the 2nd session. Even though the student is billed for the additional class, aid payments will not increase because the student will never be enrolled in and attending more than half-time.

If a student withdraws from (drops) all classes during the 100% refund period, the appropriate charges are removed from the student’s account, and the student will not receive any aid for that payment period (semester) for those classes. Aid payments are removed from future classes if dropped during the refund period, if aid was paid in advance for those classes. This could offset any refund of tuition & fees from the dropped classes. Aid payments may also be removed, in accordance with federal and state guidelines, for classes granted 100% refund of tuition & fees due to an administrative withdrawal or for classes in which instructors later report that the student never participated.

**REMINDER: If you have any active federal student loans that you have borrowed while attending any school, you could begin your grace period or be required to start repaying your loans any time that you drop below half-time enrollment.**

 


Withdrawing & Financial Aid

When a student withdraws from or stops attending all classes during a period (semester) in which they begin enrollment, there are specific regulations for students that have received Title IV, or federal, financial aid. Title IV aid includes the federal Pell Grant, Supplemental Educational Opportunity Grant, and Direct Loans or Parent PLUS loans. There may also be guidelines about the return of specific state or institutional funds.

 


Official Withdrawals

A student is considered an official withdrawal once they complete the withdrawal process for all course registrations before the end of a semester or period of enrollment in which they began attendance. Depending on what time it is during the semester, students can withdraw from (drop) all classes online through TigerWeb, by completing the proper paperwork with Enrollment Services for credit hour programs, or by working with Student Services at the Technical College (TCAT) for clock hour programs.

If all classes are dropped during the 100% refund period (prior to the start of classes), no attendance is reported for the class and the appropriate charges are removed from the student’s account. If the withdrawal process is completed after the 100% refund period has ended, the student is considered an official withdrawal and earns a grade of “W” for all classes in which they were enrolled – up until the last designated day of the semester to drop classes with a “W.” An appropriate percentage of tuition and fees may be refunded to the student, depending on the refund period. If a student is later granted an administrative (or retroactive) withdrawal by Academic Affairs, either of the above resolutions could occur, depending on the recommendation of Academic Affairs.

 


Unofficial Withdrawals

A student who does not complete the withdrawal process for all classes is considered an unofficial withdrawal when it has been determined that they stopped attending or never attended all classes for which they are registered.

The attendance status and last date of attendance are determined by the instructor of each class. If a student is considered to have stopped attending, or never attended a class, they will earn a grade of “F” for that class. At the point when a student has been marked as “stopped attending” or “never attended” for all classes, the student is considered an unofficial withdrawal. The Office of Financial Aid reviews official records on a daily basis. If a student has stopped attending, it has been determined that no classes were ever attended, or if they have not completed a minimum of 60% of the enrollment period for those classes, aid will be adjusted based on the last date of attendance (even if they have not officially withdrawn).

 


Administrative / Medical Withdrawals

Chattanooga State does not have an official Leave of Absence policy, so students must withdraw to end their attendance at the school. If a student withdraws during a semester, they are allowed to return the following semester. If a student does not notify the school that they will be returning and does not enroll during an upcoming semester, they must later re-apply for admission.

A student should contact Academic Affairs if they have extenuating circumstances – personal, family, medical, etc. Financial aid may or may not be adjusted for an administrative or medical withdrawal, depending on whether or not the student actually attended class and earned any of their aid.

 


Aid for Eligible Classes

Federal regulations state that Title IV aid, such as Pell Grant or Direct Loans, can only pay towards courses that meet specific eligibility requirements. Most state grants and scholarships also follow federal regulations. Credit or clock hours are eligible for federal or state aid if they meet the following guidelines:

  • Classes must be required for graduation in a student’s current program of study (mapped out in Tiger Tracks)
  • Federal or state aid can pay towards 1 repeat attempt of a course previously passed with a grade of “D” or better – this includes any transfer credits
  • Federal or state aid can pay up to 30 attempted hours of remedial (learning support) courses, including any transfer credits

If, at any point in the payment period (semester or term), a student ceases to be enrolled in eligible classes (credit or clock hours), then a student is considered a total withdrawal for Title IV (federal) purposes. Aid may have to be adjusted or returned in accordance with federal or state regulations. This includes situations in which classes no longer count as an eligible part of a student’s program of study, either because of a change of major or one of the reasons listed above.

 


The Return of Title IV Funds

If a student has received federal financial aid during a period of enrollment and does not complete at least 60% of that period (including parts of term), then a percentage of aid that the student has earned must be determined. The Financial Aid Office must also calculate the percentage of unearned federal aid that must be returned by either the school or the student. This is done for all types of federal financial aid except Federal Work Study (earned wages do not have to be returned). This is known as a Return of Title IV funds calculation. The federal funds used in the calculation of earned and unearned aid are listed below, and must be returned to the Department of Education in this order:

  • Unsubsidized Federal Direct Stafford Loans
  • Subsidized Federal Direct Stafford Loans
  • Federal Direct Parent PLUS Loans
  • Federal Pell Grant
  • Federal Supplemental Educational Opportunity Grant

State and institutional aid is not returned once it has been disbursed to the student, unless it has been determined that the student never attended during the payment period or the student is granted an administrative withdrawal and 100% refund of tuition & fees. A change in enrollment, however, can affect future enrollment for state aid or other scholarships and grants.

Students completing more than 60% of the period of enrollment earn all of their financial assistance. Parts of term are considered when calculating the percentage of earned and unearned aid. Student enrollment and accounts are reviewed on a weekly basis. The Return of Title IV funds calculation must be done as soon as the Office of Financial Aid is notified that the student is a total withdrawal for the payment period. For students receiving federal financial aid, the Return of Title IV funds calculation is based on the withdrawal date established by the official withdrawal process and federal guidelines for both credit and clock hour programs.  If the enrollment status change occurs before the 60% mark of the enrollment period, students may owe a balance for unearned aid that must be repaid.

**Because financial aid pays in advance for classes that start at a later date, aid payments must be removed for dropped classes before the Return of Title IV funds calculation can be done. Classes dropped before they have started yet or are withdrawn from during the 100% refund will have the charges, registration, and attendance records for these classes removed. This could result in an increased balance owed to Chattanooga State, on top of the balance from a Return of Title IV funds calculation. This is especially the case if a refund of excess financial aid was issued. If a student ceases enrollment in all current classes (withdraws, stops attending, or never attends), but has registration in future classes, then the Return of Title IV funds calculation depends on the student’s intention of participating in those future classes.

 

The Return of Title IV funds calculation determines two separate amounts:

  1. Institutional Required Return: this is the amount of federal funds the school is responsible for sending back to the Department of Education. Once the institutional return is calculated, the appropriate federal awards are adjusted and the charges added to the student account. The funds for the institution’s portion are returned to the Department of Education within 45 days in accordance with federal guidelines. The return of funds results in a balance owed to the school. The student is notified within 30 days by TigerWeb message, email, or U.S. mail. A registration hold is placed on the student’s account until the balance is paid in full. This prevents registration, schedule changes for future classes, or requests for a college transcript. If the balance is not paid in full in accordance with TBR policy, the debt is referred to collections.
     
  2. Student Required Return: this is the federal fund overpayment for which the student is responsible for returning. Once the student’s return is calculated, it results as a balance owed to the Department of Education. The financial aid hold is put on the student account – this is to prevent further awarding or disbursement of aid. The student is notified of the balance within 30 days by TigerWeb message, email, or U.S. mail. Once the student is notified of the federal aid overpayment, they have 45 days to pay the balance in full to the school by cash, money order, or certified/cashier’s check (no personal checks, debit cards, or credit cards).
     
    • If no positive action is taken within 45 days, the debt is referred to the Department of Education as a federal overpayment, which will affect Title IV eligibility at any school until the debt is repaid or successful payment arrangements made with the Department of Education.
       
    • If, within the 45-day period, the student notifies the school that they cannot or will not repay the debt, it will be immediately referred to the Department of Education as a federal overpayment.

 

Post-Withdrawal Disbursement

If it is determined that a student has aid that could have disbursed (even though a student is no longer enrolled in a payment period), the student may be eligible for a post-withdrawal disbursement of the aid that was earned. This could be effective even if a student is granted 100% refund of tuition and fees due to a medical or administrative withdrawal, but the Office of Financial aid has documentation of attendance in classes.

If a post-withdrawal disbursement exists for a payment period in which the student was granted 100% refund of tuition and fees and removal of any attendance or grading records, the student is contacted by the Office of Financial Aid to give the student the opportunity to request a return of all federal funds. That disbursement does not count in their Pell Lifetime Eligibility Usage or aggregate lifetime loan limits. If the student is eligible for the post-withdrawal disbursement, the credit balance is issued to the student as a refund within 5 business days of when the credit balance was created. This is done as a direct deposit to the student’s authorized bank account or as a paper check mailed to the most current address on file. 

Withdrawals are reviewed on a weekly basis, so a student’s account balance could be affected at any time (such as if a student does not attend or complete all your classes within 60% of enrollment periods for which you are registered). Once a balance is owed to the school, it can stand in the way of registering for classes or transferring to another institution. If a balance is owed to the Department of Education, it can affect your eligibility for federal financial aid in the future. It is important that you monitor your account information and campus email regularly and communicate with the Office of Financial Aid if you need to make any changes to your schedule or enrollment at Chattanooga State.

 


Examples of Return Calculations:

For a credit hour program –

A student began attendance on January 16th, at the start of the semester, and had attendance confirmed in 16 credit hours as of the census date (14th day). Since the student was enrolled full-time, the federal Pell Grant paid out at 100% at $2,960, and no other federal aid paid to the student.  The student had to officially withdraw from all classes on January 30th. For the full semester, there are 101 days (not including break days), and the student was determined to have completed 15 days, which calculates to 14.9% of the payment period completed*. The student earned 14.9% of their federal aid, totaling $441.04, meaning $2,518.96 needs to be returned to the Department of Education. The amount the school must return is calculated to be $1,972.19, and the student must return $546.77; however, if the federal grant amount that the student must return is less than 50% of the original grant, they are not responsible for repayment. So, after the institution has returned their portion, the student has earned $988 of their Pell Grant.

* If the student had not completed the official withdrawal process, the Return of Title IV Funds calculation would be the same, if the withdrawal date was determined to be the same – even if the enrollment status was not updated until later in the semester.

 

For a clock hour program –

A student begins attendance in their program on January 10th, and is required to complete 450 clock hours during that payment period for their program. Since the payment period requires at least 390 clock hours, the student is considered to be enrolled full-time, so 100% of their federal Pell Grant pays out as of the census date at $2,960. The student has to completely withdraw from the payment period on February 1st. The student is determined to have completed 81.25 clock hours (13 days at 6.25 hours per day) of the payment period, or 18.1% - therefore, they have earned 18.06% of their federal aid. The Return of Title IV Funds calculation determines that the student earned $534.44 of their Pell Grant, and $2,425.56 must be returned to the Department of Education. The school must return $1,165.45, and the student’s portion of the funds to be returned is $1,260.11 – however, the return is less than 50% of the total grant award, so the student’s revised earned aid is $1,795.

* If the student had not completed the official withdrawal process, the Return of Title IV Funds calculation would be the same– even if the enrollment status was not updated until later in the semester.

 


Repayment Policies

Balances owed to the institution from the institutional required return, adjustments to financial aid, or assessment of other fees can be paid online through your TigerWeb account or through the Bursar’s Office: contact the Bursar’s Office at (423) 697-4732, bursar@chattanoogastate.edu, or in person with questions about payments or payment arrangements.

  • Accounts referred to collections, write-off accounts, or charges from returned checks must be paid through the collection agency
  • Any balance owed to the school not paid in full, in accordance with TBR policy, will be referred to collections after late notices have been sent to the student.
  • A balance owed to the school will prevent you from making schedule changes, registering for future classes, or requesting a college transcript

Balances owed to the institution from the student required return must be paid to the school within 45 days, unless payment arrangements with the Department of Education are necessary. Contact the Office of Financial Aid at (423) 697-4402, finaid@chattanoogastate.edu, or in person at the Enrollment Services desk in the Student Center at the main campus with questions about federal aid over-payments.

If within 45 days of the date of notification of the balance owed, payment can be made through the Bursar’s Office at the school by cash, money order, or certified/cashier’s check (made out to Chattanooga State). Once the payment is received at the school, the award(s) is immediately adjusted and funds returned to the Department of Education.

If the 45-day period has passed and the debt referred to the Department of Education as a federal overpayment, or, at any point during the 45-day period the school is notified that the debt cannot or will not be repaid, then payment arrangements can be made through the Department of Education website at https://myeddebt.ed.gov/ or by calling (800) 621-3115.

In accordance with recent state (THEC) guidelines, students may be able to complete a Debt Repayment Agreement (“Promise to Pay”)  with the Bursar’s Office after sitting out (not enrolling) for at least one fall or spring semester. Not enrolling for one summer semester does not make a student eligible to complete this agreement. This agreement must be completed in-person at the Bursar’s Office, main campus, and allows any registration or transcript holds to be removed if the student wishes to re-enroll in classes at Chattanooga State, another TBR institution, or one of the institutions in the University of TN system – or wants an official college transcript sent to one of these schools. The Debt Repayment Agreement stops any collections activity and requires that the debt owed to Chattanooga State be paid in full during the agreed period of enrollment. In some cases, excess financial aid for which the student is eligible can be paid towards this debt with the appropriate documentation. If the debt is not paid in full by the end of the Debt Repayment Agreement, then the student is not able to receive their diploma, registration/transcript holds are added back to the student’s account, and any prior collection activity is resumed.