FINANCIAL AID RETURN OF TITLE IV FUNDS

Policy: Federal regulations state that if a student withdraws completely from the university for the current term, then the university is required to determine how much of the financial aid that student was eligible to receive, or earned, using the Federal Return of Title IV Funds Calculation. The university will return unearned funds to the lender/program.

Procedure: Financial Aid Office (FAO), once notified by the Registrar’s Office of a withdrawal/Leave of Absence, will determine how much financial aid the student was eligible to receive using the Federal Return of Title IV Funds Calculation. The return calculation will determine what portion of financial aid received or pending that the student has “earned”. Unearned funds must then be returned to the lender/program (i.e. Direct Loans, Perkins).

• FAO will complete the Federal Return of Title IV Funds Calculation.
• FAO will pull back the portion of the loan amount that must be returned by the school according to the return calculation. This may cause the student to owe funds back to the university. 
• FAO will send a formal letter to the student to explain the return of funds and the amount, if any, the student must return of his/her unearned loan funds.

Once a student has completed 60% of their current term, he/she is considered to have “earned” 100% of his/her financial aid. However, a school must still complete a return calculation and will determine whether the student is eligible for a post-withdrawal disbursement.

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