Return of Funds Policy

The Return of Federal/Title IV Policy applies to students who withdraw, are approved for a leave of absence or are academically dismissed from the institution.

The U.S. Department of Education governs the policy and procedure pertaining to the treatment of federal student aid received by a student when the recipient withdraws before completion of the payment period or period of enrollment in which the student began attendance. 

Federal student aid eligibility is based on the percentage of time the student is enrolled for the payment period or period or enrollment.  Depending on the date of withdraw, the student’s aid may be adjusted according to the Federal Return of Title IV formula, state grant refund calculation, and/or institutional policy.

  1. The term “Title IV Funds” refers to the financial aid programs for postsecondary students, authorized under Title IV of the Higher Education Act of 1965, as amended (Title IV, HEA) and administered by the U.S. Department of Education.  Examples of Title IV funding are: Federal Pell grant, Federal Direct Subsidized Loans, Federal Direct Unsubsidized Loans, and Federal Direct Graduate PLUS Loans.
  2. A student’s withdrawal date can be:
    • The date the student began the institution’s withdrawal process or officially notified the institution of intent to withdraw or
    • The student’s last date of attendance as documented by academically related activity or
    • The midpoint of the period of enrollment for a student who leaves without notifying the institution
  3. Determination of amount of Title IV aid to be returned:
  • Until a student has passed the 60 percent point of a payment period or enrollment period, only a portion of the student’s aid has been earned. After the 60% point all title iv funds are considered “earned”.
  • The calculation of earned vs. unearned aid will determine if the institution is required to return a portion of the title iv funding to the Department of Education; If the Title IV funds are returned, the student may owe a balance to the institution.  Students withdrawing from classes are responsible for paying any balance due after the required return of federal student aid funds.
  • The institution must return the amount of Title IV funds for which it is responsible no later than 30 days after the date of the determination of the date of the student’s withdrawal. The unearned portion of federal student aid funds will be returned to the appropriate aid program(s). The funds are returned in the following order:
    • Unsubsidized Direct Loan
    • Subsidized Direct Loan
    • Direct Grad PLUS Loan
    • Direct Parent PLUS Loan
    • Pell Grant
    • Iraq and Afghanistan Service Grant
    • FSEOG
    • TEACH Grant
  1. The University’s refund policy and return of Title IV funds procedures are independent of one another.