Financial Aid - Federal School Code: 006972


Student Repayment Alert

         Federal law requires repayment of financial aid if you leave school!

Financial aid is estimated based on full-time enrollment status (12 units/semester). Your eligibility for financial aid is calculated using your EFC (Expected Family Contribution, as determined by the FAFSA (Free Application for Federal Student Aid) and your enrollment. Awards are adjusted down for less-than-full-time status. Awards are recalculated if you leave school to determine how much you have "earned" and if repayment is required.

Also see: Cost of Attendance and Return of Title IV Funds for detailed information 

Pell Grants and Withdrawal

→If you receive a PELL GRANT based on 6+ units, and then you are reported as a "No Show" in enough units to bring your total enrollment below 6 units, you will owe back the difference.

→If you receive a PELL GRANT and then WITHDRAW from all your classes, you could owe money back to the federal program and/or Butte College and a hold may be placed on your future semester financial aid. 

How does this work? According to the day you withdraw, the Financial Aid Office will calculate the part of the grant you have "earned". NOTE: If you withdraw after you have earned 60% of your grant, you do not owe any repayment.


You receive $1412 in Pell Grant and could have received an additional $1411 if you had finished the term. If there are 117 days in the term and you drop out on the 16th day, then you earned 13.7% of the grant.

The Financial Aid Office will calculate what you "earned" and "did not earn":

  • $1412 Pell Grant received + $1411 you could have received = $2823 x 13.7% = $386.75 "earned"
  • $1412 Pell Grant received - $386.75 = $1,025.25 "unearned" amount

An additional portion of the Pell Grant must be repaid based on the number of units you were enrolled in at the time you withdrew.

  • If you took 12 units at $46 each, your fees would be $552 (tuition) + $126 (service fees) for a total of $678.
  • $678 x 86.3% "unearned" = $585.11. This is the amount the college has to repay the federal program. As per college policy, you are billed this amount to repay the college.

You will have to repay the "unearned" amount minus 50% of the total aid that was disbursed and aid that could have been disbursed.

  • $1,025.25 "unearned" aid - $585.11 that the college repays = $440.14, or the initial amount of unearned aid due from you, the student.
  • $2,823 total aid disbursed/could have been disbursed x 50% = $1,411.50.
  • $440.14 - $1,411.50 = $-0- you must repay the federal program ("unearned" portion)
  • $585.11 rounded to the nearest dollar = $585, the amount you owe Butte College, based on units enrolled.


If you receive Federal Direct Loan funds and withdraw, you will repay the money received according to the rules of the loan program. However, if the college has to pay back a portion due to your withdrawal, you will be billed similarly to the example above. In addition, you may be ineligible for a future student loan at Butte College or other school. 


If you receive Federal Work-Study funds and withdraw, you do not owe any of that money back because they are wages. You always get to keep wages you have earned.


If you have an outstanding balance, a hold will be placed on your records that will prevent you from receiving grades, transcripts or a diploma. After 45 days, (if you owe money back to the federal program) a "hold" on the national student aid database (NSLDS) will also prevent you from receiving financial aid at any college or university you attend in the future.

If you are thinking of withdrawing or just walking away... Please, think again!!

If at any point, you are considering withdrawing from all of your classes, please see a counselor or advisor as soon as possible and discuss your academic or personal reasons for leaving. There are many support services available to help you. Also talk to your teachers and see what advice and help they can offer.


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