Return To Title IV Policy For Federal Financial Aid – Students Only
Students who receive financial assistance from Title IV Programs (Federal Pell Grant, Stafford loans, PLUS loans) and withdraw from school prior to completing more than 60% of the scheduled hours in the payment period are subject to the Return of Title IV Funds requirements of the U.S. Department of Education.
Please note: The Last Date of Attendance (LDA) will be used in the below calculation. The Date of School Determination (DoSD) must be no later than 14 calendar days from the LDA. The school will then notify the student within 30 days of the DoSD and make any required refunds no later than 45 days from the DoSD. If a student does not return from an approved Leave of Absence (LDA) the DoSD will be the date the student was scheduled to return from the LOA. The school calculates R2T4 on a payment period basis.
The Return of Title IV Funds procedure is as follows:
- Determine the percentage of the payment period completed. To determine the percentage, divide the clock hours scheduled to have been completed as of the withdrawal date (last date of attendance) in the payment period by the total clock hours in the payment period.
- If this percentage is greater than 60%, 100% is retained.
- If this percentage is less than or equal to 60% multiply the percentage of the Title IV aid earned times the total of the Title IV aid disbursed plus the Title IV aid that could have been disbursed for the payment period as of the date the student withdrew (LDA)
- Compare the amount earned to the amount disbursed. If less aid was disbursed than was earned, the student may receive a post withdrawal disbursement for the difference. If more aid was disbursed than was earned, the difference is refunded back to Title IV programs.
- Allocate responsibility for returning unearned aid between the school and the student. Students who receive living expenses would be responsible for repayment of any unearned aid. If the student’s share of the unearned funds that must be returned are attributed to a Title IV Loan program, then repayment will still be based under the terms and conditions of the promissory note. If the student’s share of the unearned funds that must be returned are attributed to a Title IV Grant Program, the initial amount to return will be reduced by 50%.
- Distribute the unearned aid of the payment period back to the Title IV Programs.
Refunds at this School will be returned in the following order:
- Federal Pell Grant Program
- Federal SEOG Program
Refunds less than $1.00 will not be made to Title IV Programs.
Please be advised that this is only the Return to Title IV refund. Once the School determines the amount of Title IV aid that the School may retain, the institution will then calculate the institutional/state/accrediting agency’s refund policy.