Shared Content 2013-2014 > Financial Policies and Information > Return of Title IV Funds Policy

Return of Title IV Funds Policy

Federal regulations state that the amount of a Title IV refund is based on the percentage of Title IV funds earned by the student at the time of withdrawal. In order to determine whether Title IV funds must be returned, the University must calculate the following:

• To determine the percentage of the payment period completed, the number of days* attended in the payment period is divided by the total days* in the payment period. *Days = calendar days for purposes of this formula, and therefore include weekends and holidays. Only scheduled breaks of 5 days or more are excluded.
• The net amount of Title IV funds disbursed, and what could have been disbursed for the payment period is multiplied by the percentage of the payment period completed. The result is the amount of earned Title IV aid.
• The earned aid is subtracted from the aid that was actually disbursed to or on behalf of the student.
• The institution will return the lesser of the total earned aid or the unearned institutional charges for the payment period.
• Unearned aid is allocated back to the Title IV programs in the following order as specified by law:
  1. Unsubsidized Direct Loans
  2. Subsidized Direct Loans
  3. Federal PLUS Loans
  4. Direct PLUS Loans

If excess funds remain after repaying all outstanding loan amounts, the remaining excess shall be credited in the following order:

1. Federal Pell Grant Program
2. Academic Competitiveness Grants (ACG)
3. Federal SEOG Program
4. Other assistance awarded

Please Note: After the institution has allocated the unearned aid, any amount owed by the student to a grant program is reduced by 50%. Unearned loan funds received by the student are paid back as per the terms of the borrower’s promissory note.