When Must I Give Back the Money?

There are occasions when students receive payment and drop all their classes during the same term. There are also occasions when students receive money based upon misreported information (for example: income, prior loan defaults or grant overpayments, BA Degree received or high school graduate/GED status, forged signatures, and unsatisfactory academic progress, to name a few).

Grant Overawards: Students who receive grant funds due to misinformation as noted above, are required to repay THE ENTIRE SUM RECEIVED unless the situation causing the overpayment can be remedied to the satisfaction of the Financial Aid Office.

Grant "Return" Policy: All students receiving federal financial aid who completely withdraw within the first 60% of a term (semester) are subject to the "Return" provision.

The potential "return" is calculated as follows:

Sample Financial Aid Repayment Calculation

If you receive LOAN money and withdraw, you will pay back the money according to the normal rules of the loan program. In addition to that any money that the college is required to pay on your behalf will be charged to your student account. Also, you may not be eligible to borrow money at Butte College in the future.

If you receive WORKSTUDY money and withdraw, you do not owe any of that money back. These wages will not be used in the calculation above. You always get to keep wages you have earned.

The student must either repay the above debt within 45 days of billing or agree to make "satisfactory repayment arrangements" with either the college or the United States Department of Education (the college's choice). Failure to do either will result in the loss of future financial aid eligibility ANYWHERE IN THE COUNTRY until such time as the student repays in total or makes "satisfactory repayment arrangements" with the United States Department of Education. Should the college bill the student for the college's portion of the "return," the student who fails to repay or make "arrangements" will not be allowed to enroll in future terms or receive their grades or transcripts !!

[If the student, by calculation, "earned" more than what has actually been disbursed, the college must offer to pay that student a "post withdrawal disbursement" within 30 days of notification of the student's withdrawal.]

IN ORDER TO AVOID REPAYMENTS, REMEMBER, TRY TO COMPLETE AT LEAST ONE CLASS EVERY TERM, OR AT THE VERY LEAST, TRY TO STAY IN ATTENDANCE UNTIL AFTER THE 60% POINT OF THE TERM !!

The following payment and "return" provisions are in effect at Butte College.
"Return" collection procedures are as follows:

• The student must repay the entire amount due within 45 days of notification by the college, OR;
• The student must make arrangements with either the college or the US Department of Education to make "satisfactory payment arrangements" (not to exceed two years in length), within 45 days of notification by the college. [ It is the college's choice whether or not it will negotiate "arrangements" or refer the student to the Department of Education.]
• Failure to do either of the above will result in the student becoming ineligible for future federal financial aid at Butte College or anywhere in the country.
• If the college negotiates an "agreement" with the student and the student fails to satisfy his/her obligations (pay on time), the college MUST then refer the student to the US Department of Education.
• The additional portion that must be returned to the federal programs by the college (based on units enrolled) will be charged to the student's Butte College account for collection. The student will be notified by mail within 30 days of the date that the institution determines the student withdrew. The student will be unable to register for future terms or receive his/her academic transcripts or grades until the debt is repaid to the college or "satisfactory arrangements" are made with the college.