Return of Title IV Funds

Federal Policy for Return of Title IV Funds

The Financial Aid Office must adhere to Federal Law when determining the return of Financial Aid to the Financial Aid Programs.

Withdrawal

If a financial aid recipient withdraws during a semester, the Financial Aid Office must calculate the amount of Title IV aid the student did not earn. Unearned funds must be returned to Title IV Programs.

If the repayment of funds affects grant dollars received, the student's repayment of these funds will be reduced by 50 percent of the total grant aid.

Students will repay loan funds based on the repayment terms of the promissory note. Repayment of grant funds can be arranged with the school if paying in full, or the Department of Education if a payment schedule needs to be arranged. If a student fails to repay grant funds, they will be ineligible for future financial aid.

If a student withdraws the first term, but plans to return spring term, he/she must submit WRITTEN notification to the Financial Aid Office so that aid may be reinstated and/or revised. If a student fails to notify the Financial Aid Office, the aid will remain cancelled.

The basic formula is:
% of enrollment period completed	x	Total potential aid	=	Earned aid
Total potential aid	-	Earned aid	=	Unearned aid
The school must return:
Institutional charges	x	% of aid unearned	=	Return
Students must repay:
Amount of Title IV to be returned	-	Amount of school Title IV	=	Repay

Contact Susan Johnson if you have additional questions.