Return of Title IV Withdrawal Policies
- Students who wish to completely withdraw from their courses must officially withdraw at the Registrar Office by completing a Withdrawal Form.
- Students who completely withdraw at or before 60% of the term will be processed through a Return of Title IV Funds Calculation.
- This calculation determines the percentage of financial aid the student has earned based on the number of days the student attended divided by the number of days in the enrollment period.
- The school will return the lesser amount of the aid to be returned as compared to the institutional charges multiplied by the percentage of unearned aid.
- The student will be responsible to pay any unpaid institutional charges incurred by the institution having to return Title IV funds.
- The student will also be responsible for returning a percentage of unearned financial aid. This amount will be the difference between the amount of Title IV aid due from the school and the amount of Title IV aid to be returned.
- The school must return funds to the following sources, in order, up to the total net amount from each source: Unsubsidized Federal Stafford Loan, Subsidized Federal Stafford Loan, PLUS, Pell Grant, Federal ACG, Federal SEOG, and any other Title IV programs.
- The student or parent (in cases of a PLUS loan) must return funds by repaying funds to the following sources, in order, up to the total net amount disbursed from each source: Unsubsidized Federal Stafford Loan, Subsidized Federal Stafford Loan, PLUS, 50% of Pell, 50% of Federal SEOG, and 50% of any other federal grant program.
- The student will return loan amounts in accordance with the terms of the
- promissory note.
- If the student owes tuition and fees, the student will receive an invoice from the school.
- The Financial Aid Office will notify the student of the amount of any Federal Grants that must be repaid by the student.
Example of Return of Title IV Calculations
Below is an example of the Return of Title IV calculations used to determine the amount of unearned aid a student would be expected to repay based on the date of withdraw.
Daffy Duck contacted the Registrar Office on January 26 to do a complete withdraw from the college. The term began on January 5 and is 75 days long. Daffy has attended 22 days and has earned 29.3% of his financial aid (22 divided by 75 days = 29.3%). Daffy received in aid:
- Federal Stafford Loan: $1,167
- Parent PLUS Loan: $1,500
- Pell Grant: $1,000
- Total Aid Spring Term: $3,667
- The amount of federal aid earned by the student is 29.3% x $3667=$1074.43.
- The total federal aid unearned is $3667 - $1074.43=$2592.57.
- The second calculation determines percentage of amount unearned based on school charges for tuition and fees/or book charges (if applicable). Daffy was charged on his student billing account $1843 in tuition and fees. Percentage of unearned aid for this second calculation is 100% - 29.3%=70.7%, therefore based on the tuition and fee charges for the term $1843 x 70.7% = $1303.
- The amount to be returned in federal aid is the lesser of number 2 or number 3, which for this example is $1303. This is the amount that must be returned from Daffy's federal financial aid.
- Federal guidelines determine the order of aid types to be reduced: Stafford Loans, parent PLUS Loans, and then Pell Grant for Daisy until$1303 has been repaid. Therefore Daffy's aid will be reduced to:
- Federal Stafford Loan: $1,167
- Parent PLUS Loan: $1,500 - $136 = $1,364
- Pell Grant: $1,000 - $0 = $1,000
- Total Returned: $1,303
The total returned amount reflects the amount to be billed to Daffy's student billing account from his financial aid. Any refunds from tuition that are determined and applied to his account may affect the amount that Daffy owes for spring term.