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GalacticGuru

Can community college bill me for aid after withdrawing from classes? FAFSA confusion

I'm completely confused about what's happening with my federal student aid. Here's the situation: I received $9,000 in federal loans for the year at my community college. I ended up withdrawing from 2 out of 4 classes this semester, and now the college is billing me for $4,500 saying I need to pay it back immediately! But when I check the Federal Student Aid website, it shows the entire $9,000 as 'total amount disbursed' under my name. How can they bill me directly when this money is already recorded as a federal loan I took out? Shouldn't any repayment go through the loan servicer? I'm really stressing about this because I don't have $4,500 to pay the school right now. Can someone please explain how this works? Is the school allowed to do this?

Amara Nnamani

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The school can absolutely bill you for that. It's called Return to Title IV (R2T4). When you withdraw from classes, the school has to calculate how much aid you actually "earned" based on how long you attended. If you only completed half your classes, you only earned half the aid. The school has to return that money to the federal government, but YOU still owe the school. Check your enrollment agreement, it's in there somewhere.

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GalacticGuru

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But I don't understand - if they're returning the money to the federal government, why do I owe the school? Shouldn't my loan amount just be reduced? This feels like I'm paying twice for the same thing!

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omg this happened to me last yr! the whole financial aid system is such a SCAM. they give u money then take it back and still expect u to pay loans on money u didnt even keep!! like how is that fair??? my advisor told me its just how it works and i ended up on a payment plan with my CC for like 6 months. system is rigged against students 100%

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While I understand the frustration, this isn't actually a scam - it's a federal regulation designed to ensure aid is used for its intended purpose. The school is required by law to return unearned aid to the government. The confusion happens because the loan servicing and the school billing are separate systems that don't always communicate well with each other.

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This is an important question that confuses many students. What's happening is a federal process called Return to Title IV (R2T4). When you withdraw from classes, the Department of Education requires schools to: 1. Calculate how much aid you "earned" based on your attendance (in your case, about 50%) 2. Return the "unearned" portion to the federal government immediately 3. Bill you for that amount since the school had to return money that was originally applied to your account Your loan servicer will eventually update your loan balance, but it won't happen immediately. The school can't wait for that process - they've already sent the money back to the government and now have an outstanding balance on your account. You should speak with your school's financial aid office about setting up a payment plan. Many schools offer these with low or no interest.

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GalacticGuru

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Thank you for explaining that so clearly. I had no idea this was a thing! I'll definitely talk to financial aid about a payment plan. Do you know if this will affect my ability to get aid next semester? I'm worried about getting flagged in the system somehow.

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Great question. As long as you set up and maintain a payment plan with your school, it shouldn't affect your future federal aid eligibility. However, many schools won't let you register for future classes if you have an outstanding balance. That's why the payment plan is important - it usually allows you to register while you're paying off the balance.

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Dylan Cooper

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Had a similar issue and spent HOURS trying to reach someone at federal student aid. Kept getting busy signals or disconnected. Finally discovered Claimyr.com which got me connected to a real person at FSA in about 10 minutes. They have a video demo at https://youtu.be/TbC8dZQWYNQ that shows how it works. The agent explained that what your school is doing is standard procedure with withdrawals, and my loan balance was eventually adjusted but it took about 6 weeks to show up correctly on the website.

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GalacticGuru

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Thanks for the tip! I've been trying to call FSA too with no luck. Definitely going to check out that service because I need to understand if this will increase my overall loan amount. 6 weeks is a long time to wait for the system to update when they want money now!

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Sofia Morales

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This is one of those weird financial aid quirks that nobody explains when you enroll. Basically, by withdrawing, you triggered what's called a Return to Title IV calculation. The school has to follow federal regulations: - They return the unearned portion of your aid to the government - They bill you for that amount because it created a balance on your account - Your loan servicer will eventually adjust your loan amount, but this can take 30-60 days Here's the important part: this DOESN'T mean you're paying twice. The $4,500 will eventually be removed from your total loan balance - you just won't see that reflected immediately in the federal aid website. The school is essentially fronting the money back to the government and asking you to cover it. I recommend: 1. Get documentation from your school about the R2T4 calculation 2. Ask for a payment plan (most schools offer these) 3. Check your loan balance in about 2 months - it should be reduced by the returned amount

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GalacticGuru

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Thank you so much! This makes me feel a lot better knowing I'm not actually being double-charged in the long run. I'll definitely ask for that R2T4 calculation and see about a payment plan.

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StarSailor

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i withdrawn from classes last semester too and got hit with a bill.... its total bs how they dont explain this to u when u sign up for classes!!!! like how am i supposed to know all these rules??? the FAFSA system is so confusing and nobody explains anything until its too late

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Dmitry Ivanov

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Yeah they should really make a mandatory financial aid 101 course b4 anyone can even take out loans lol. I signed all those papers not understanding ANY of it and now I'm drowning in debt 🙃

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Amara Nnamani

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Something everyone is missing - make sure you check if your withdrawal has put you in SAP (Satisfactory Academic Progress) violation too. If you failed to complete 67% of your attempted credits, you might lose future aid eligibility on top of owing this money. Dealing with both issues at once is important.

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GalacticGuru

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Oh no, I didn't even think about SAP! I need to check on that immediately. Do you know if getting put on an SAP warning affects current semester aid or just future semesters?

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Amara Nnamani

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Usually the first time you fall below SAP standards, you get put on a warning for one semester where you still receive aid. If you don't get back above the requirements after that semester, then you lose eligibility. But every school handles the process a bit differently, so definitely check with your financial aid office ASAP.

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