This notice serves to disclose required student consumer information in regards to how withdrawals may affect your Title IV Funds.
The Higher Education Amendment of 1998 required schools to implement a Return of Title IV Refund Funds Policy when a Title IV (federal financial aid) recipient withdraws from school. A federal financial aid recipient is defined as a student who has received Title IV funds such as but no limited to Federal Pell Grant, Federal Supplement Educational Opportunity Grant, Federal Direct Loans, Federal Perkins Loan, and Federal Direct PLUS Loan.
Title IV funds are awarded to students with the assumption that he/she will attend school for the entire term or payment period. As a federal financial aid recipient, it is important to understand that there is a unique refund schedule for your financial aid that differs from the university tuition and fee refund schedule. Students who completely withdraw from classes (dropping of all courses) or student who began attendance and failed to earn a passing grade in at least one course offered over an entire term or payment period (known as an Unofficial Withdrawal) are subject to the Return of Title IV refund calculation as dictated by federal regulations.
Determination of Federal Aid Earned
Earned aid is determined based on the number of calendar days the student attended classes divided by the total number of calendar days in the term. The result is a percentage of federal aid funds that the student is entitled to keep.
For example, a student who attends 20% of the term has earned 20% of the total aid value that was disbursed to their student account.
Return of Unearned Federal Aid
The total federal aid disbursed at the point of withdrawal less the earned amount constitutes the unearned aid that must be returned to the federal government. The school will initiate a return of unearned aid in the following order:
- Federal Unsubsidized Loan
- Federal Subsidized Loan
- Federal Perkins Loan
- Federal Parent or Graduate PLUS Loan
- Federal Pell Grant
- Federal SEOG
- TEACH Grant
Once the school initiates the return of funds to the federal government, students will see these entries on their online student account. The total amount returned may result in the student owing the school. If a balance due is created, you now have a financial obligation with the school. A financial obligation will prohibit the student from all registration activities, receiving academic transcripts, diplomas, and/or other entitlements until it is paid. In addition, the student may be required to directly repay a portion of the Title IV funds that were received. Any repayment outstanding or unpaid will be referred to the U.S. Department of Education for collection and legal disposition.