In order to understand the Return of Title IV funds policy, it is important to understand some definitions:
- A class that is removed from the academic record during the add/drop period, which is usually during the first two weeks of classes.
The dropped class is not shown on the transcript, is not charged if dropped during the 100% add/period, and the student is not eligible to receive financial aid for that class. A drop may have a charge of 50% of tuition and 100% of fees if the course is dropped after the 100% add/drop period.
- An option available to the student to receive a W grade in a class.
- A student MUST apply for the withdrawn class with the permission of the instructor and submit the form to the Registrar’s Office for processing.
A W grade will be printed on the academic transcript, the student is charged for the class and the financial aid is affected by a withdrawal as a class attempted but not successfully completed.
A student who chooses to withdraw from all classes in a particular semester must complete the appropriate form with the Center for Student Success and must meet with personnel within their academic department and Student Financial Services.
- For students enrolled in quarter classes, the calendar used for the Return of Title IV funds calculation is the semester calendar.
Students who drop classes in the second quarter and then totally withdraw from their classes in the first quarter will have their financial aid first adjusted for the drop and then the new award figures will be used for the Return of Title IV Funds calculation.
TITLE IV FUNDS:
- Title IV funds refers to the financial aid programs funded under the federal government.
- These include the Federal Pell Grant, Federal SEOG, TEACH Grant, Federal Perkins Loan, Federal Subsidized Direct Loan, Federal Unsubsidized Direct Loan, and Federal PLUS loans.
Even though Federal Work-Study is a Title IV program, it is exempt from the Return of Title IV calculation. The student is able to keep all Federal Work-Study earnings up to the time of withdrawal, but is ineligible to work after the withdrawal date.
Return of Title IV Funds
- This is applicable to a student who totally withdraws from ALL classes and is a recipient of Title IV aid.
- The amount of aid a student is able to retain depends on the date the student began the withdrawal process.
- The institution is required to perform the Return of Title IV funds calculation within 30 days of a student’s withdrawal.
- The institution is also required to notify the student of their revised eligibility due to their withdrawal.
- The federal formula uses a percentage basis to determine the student’s eligibility for funds due to the withdrawal.
- The formula utilizes the percentage of calendar time before the withdrawal and then applies the same percentage to the amount of aid the student is eligible to receive.
- The total aid is used in this calculation with the loans being returned first, grants second.
- The calendar time is at the 60% mark, the student is considered to have earned 100% of their funds.
- Scheduled breaks of five days or more are not included as dates of attendance toward the 60% point in time.
- Due to the complex nature of the Return of Title IV funds calculations and notification procedures, only specific staff members are trained to perform the calculation. The calculation is reviewed by a second staff member before the information is sent to the student. Two examples of students who withdrew.