Federal Refund Requirements vs. State Refund Requirements

In addition to the Return of Title IV requirements for federal financial aid recipients, the institution is required by the State to calculate a prorated refund for all students who have completed less than 60% of their period of attendance, regardless of whether or not the student received Title IV funds. However, the federal formula for Return of Title IV funds may result in a larger refund than the State refund policy. In that case, the institution and/or the student must return the sum resulting in the larger of the two calculations to the appropriate Title IV program. Therefore, the student may, after Title IV funds are returned, owe a balance to the institution.  

Additionally, a student in a program offered in modules may be considered withdrawn from a program for institutional (state) refund purposes, but not subject to the Return of Title IV requirements for financial aid recipients.  Therefore, the institution may process a prorated refund of institutional charges while retaining 100% of eligible federal financial aid funds.