Return of Funds
A student who receives federal Title IV funds is subject to rules governing the return of funds in the event that he or she withdraws from all courses and/or fails to earn a passing grade in at least one course. To determine the amount of Title IV funds a student may keep to pay charges, the Office of Financial Aid will determine the number of days the student was enrolled during the relevant quarter. The University is then required to return all unearned funds back to the U.S. Department of Education, which may result in outstanding University charges.
Returning Title IV Assistance
A student earns Title IV funds in proportion to the length of time he or she is enrolled for the first 60% of the quarter. Title IV funds are defined as Federal Direct Stafford Loans, Federal Direct Grad PLUS Loans, and Federal TEACH Grant. The percent of enrollment completed is determined by dividing the number of days the student attended the University from the total number of days in the quarter. The last day of attendance is the date the student begins the University’s withdrawal process, or the last date the student participated in an “instructional activity related to the student's course of study” (e.g., attending class in person or online, participating in interactive computer-assisted instruction, lab, exam, assignment submission) which can be confirmed by a faculty or staff member.
If a student leaves without following the official withdrawal process, and it is impossible to establish a date that the student last participated in an “academically related activity,” the midpoint of the quarter will be considered the official last date of attendance for the purpose of returning unearned Title IV funds. The Department of Education requires that Title IV funds be returned in a specific order, shown below.
Unearned Title IV funds will be returned in the following order:
- Unsubsidized Direct Loan
- Direct GRAD PLUS Loan
- TEACH Grant
Funding returned to Federal Tuition Assistance programs will be returned independently of Title IV funding. In addition to a reduction in federal aid, all students subject to the policy above who cease enrollment in all coursework may also have their institutional aid reduced.
Please note that the University will be responsible for determining your earned Title IV financial assistance. Federal law specifies the order in which the funds are allocated. Title IV Funds will be the first resource applied to tuition, fees, and room and board charges. These charges are the charges assessed prior to your withdrawal date and do not reflect the adjustment.