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Return of Title
IV Funds Policy
I.
There is no longer a concept of earned or unearned
institutional charges, only earned and unearned aid.
II.
During the first 60% of the payment period (quarter), a
student “earns” Title IV funds in direct proportion to the
length of time during the period he or she remains enrolled.
To determine how much aid was “earned,” a “snapshot”
approach is taken when the institution is aware that the student
withdrew. A student who
remains enrolled beyond the 60% point earns all aid for the period.
III.
Unearned Title IV funds, other than Federal College Work
Study, must be returned back to the Federal Student Aid Programs.
Unearned aid is the amount of disbursed Title IV aid that
exceeds the amount of Title IV aid earned.
IV.
If earned aid exceeds disbursed aid, additional funds may be
disbursed (Late Disbursement). Additional
disbursements are precluded if the amount of earned aid is LESS than
the total Title IV aid that was disbursed prior to the date of the
institution’s determination that the student withdrew.
V.
Enrollment percentage will be determined by the number of
days in the quarter (including weekends) divided by the number of
days enrolled (including weekends).
However, scheduled breaks 5 days long would be excluded in
the calculation.
VI.
The withdrawal date is:
-
First,
the date the student began the institution’s withdrawal
process or officially notifies the College Records Office of
their intent to withdraw: or
-
Second,
the last known attendance at a documented academically-related
activity (i.e. exam, a tutorial, computer-assisted instruction,
academic counseling, academic advisement, turning in a class
assignment, or attending a study group that is assigned by the
institution); or
-
Third,
the midpoint of the period for a student who leaves without
notifying the institution.
VII.
The formula assumes that Title IV funds are directly
disbursed to a student only after all institutional charges have
been covered, and that Title IV funds are the first resource applied
to institutional charges. “Institutional
charges” comprise the amounts that had been assessed prior to the
student’s withdrawal, not a reduced amount that might result from
an institution’s refund policy.
VIII. The
responsibility to repay unearned aid is shared by the institution
and the student in proportion to the aid each is assumed to possess.
The institution’s share is the lesser of:
IX.
The student’s share is the difference between the total
unearned amount and the institution’s share.
X.
The institution’s share is allocated among the Title IV
programs, in an order specified by statute before the student’s
share:
XI.
After the student’s share is fully allocated among the
Title IV programs, the amount owed to a grant program is reduced by
50%.
XII.The institution must return its share of
unearned Title IV funds no later than 30 days after it determines
that the student withdrew.
XIII.Students return their share of unearned
aid attributable to a loan under the terms and conditions of the
promissory note.
XIV.The student will have 45 days after
notification of the Return of Title IV funds, to set up a
satisfactory repayment option with the institution for the
student’s share of unearned aid attributable to a grant (after the
50% reduction).
XV.After 45 days have lapsed, the account
will be turned over to the Department of Education for an
overpayment of Title IV funds. Students
who owe an overpayment of Title IV funds are INELIGIBLE for further
disbursements through the Title IV federal financial aid programs.
XVI.The student may rescind his or her
withdrawal, if the student declares in writing his or her intent to
complete the period of enrollment and continues attendance.
However, if the student does then withdraw before completing
the period, the withdrawal date is the later of:
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