Return of Title IV Funds for Financial Aid Recipients

Financial aid recipients who withdraw from all classes or stop attending classes prior to completing more than the 60% point in a semester may be required to repay all or a portion of the financial aid they received for that semester.  Recipients may also be required to pay back, to the College, all or a portion of tuition charges.

Title IV funds are awarded to a student under the assumption that the student will attend school for the entire period for which the assistance is awarded.  When a student ceases attendance, the student may no longer be eligible for the full amount of Title IV funds that the student was originally scheduled to receive.

If a student ceases attendance prior to completing more than 60% of the semester, the amount of Title IV grant or loan assistance earned by the student must be determined using a specific formula.  This is known as the Return to Title IV Funds calculation.  If the amount disbursed to the student is greater than the amount the student earned, unearned funds must be returned by the College and/or the student to the appropriate program.  If the amount disbursed to the student is less than the amount the student earned, and for which the student is otherwise eligible, he or she is eligible to receive a Post-withdrawal disbursement of the earned aid that was not received.  The exact amount to be returned by the College and/or repay by the student will vary depending on the amount of financial aid received and the point in which the student ceases attendance from the College.

The amount of assistance that you have earned is determined on a prorate basis.  For example, if you completed 30% of the semester, you earn 30% of the assistance you were originally scheduled to receive.  Once you have completed more than 60% of the semester, you earn all the assistance that you were scheduled to receive for that period.

There are some Title IV funds that you were scheduled to receive that cannot be disbursed to you once you withdraw because of other eligibility requirements.  For example, if you are a first-time, first-year undergraduate student and you have not completed the first 30 days of your program before you withdraw, you will not receive any Direct loan funds that you would have received had you remained enrolled past the 30th day.

If you receive excess Title IV program funds that must be returned, the College must return a portion of the excess equal to the lesser of:
1.Your institutional charges multiplied by the unearned percentage of your funds, or
2.The entire amount of excess funds.

The College must return this amount even if it didn't keep this amount of your Title IV program funds.

If the College is not required to return all of the excess funds, you must return the remaining amount.  Any loan funds that you must return, you (or your parent for a PLUS Loan) repay in accordance with the terms of the promissary note.  That is, you make scheduled payments to the holder of the loan over a period of time.

Any amount of unearned grant funds that you must return is called an overpayment.  The maximum amount of a grant overpayment that you must repay is half of the grant funds you received or were scheduled to receive.  You must make arrangements with your school or the Department of Education to return the unearned grant funds.

The requirements for the Title IV program funds when you withdraw are separate from the College refund policy.  Therefore, you may still owe funds to the College to cover unpaid institutional charges.  The College may also charge you for any Title IV program funds that the school was required to return.

The College will restore funds to the appropriate aid programs as prescribed by law and regulations in the following order:
1.Unsubsidized Federal Stafford Loan
2.Subsidized Federal Stafford Loan
3.Federal Perkins Loan
4.Federal PLUS Loan
5.Federal Pell Grant
6.Federal Supplemental Education Opportunity Grant
7.Other Title IV Aid Programs
8.Other Federal sources of aid
9.State/Private/College aid

Additional information is available through the Financial Aid Office.
 

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