Return of Title IV Funds

Return of Title IV Funds

The Higher Education Amendments of 1998, Public Law 105-244 require colleges to calculate the Return of Title IV Funds Policy when a recipient of Title IV aid (new or returning) completely withdraws from the college through the 60 percent point during a payment period. The institution must calculate the amount(s) of Title IV aid the student earned and return the unearned portion(s) of the Title IV fund(s) to the Title IV program(s). The institution and student will be required to return unearned Title IV funds to the Title IV programs.

 

Students officially begin the withdrawal process when they notify the Admissions/Records Office. Students are given an official withdrawal form to complete, sign and date. The Financial Aid Office verify with the Admissions Office the students last day of attendance in all class(es). Unofficial withdrawal dates are also determined when an instructor enters a “W” or “WF” and the last date of attendance on the student’s record. A daily report is run by the Admissions Office and is monitored weekly by the Financial Aid Office to determine if a student has totally withdrawn from all classes for the semester.

 

The Financial Aid Office must determine if the student was a recipient of Title IV funds who withdrew prior to the 60 percent point and perform the Return of Title IV Funds calculation. Under this policy, the school must determine the amount of Title IV funds a student has earned and return the unearned portion. The Financial Aid Office is required to send written notification to the student informing the student of the amount owed. This notification must be sent to the student, no later than thirty calendar days after the date the Financial Aid Office is notified the student withdrew.

 

If the Return of Title IV Funds calculation is performed and it determines that the student received less Title IV funds than the amount earned, the institution must make a post-withdrawal disbursement to the student of the earned aid that was not received. In order to make a post-withdrawal disbursement for incurred educational costs, the school must have received the student’s valid Institutional Student Information Record (ISIR) with an official Expected Family Contribution (EFC). Students must also have submitted all documentation requested to the Financial Aid Office. To be eligible for a post-withdrawal disbursement, the student must meet all Federal Guidelines outlined by the Department of Education.

 

Under the October 29, 2010, final regulations, effective July 1, 2011, for all programs offered in modules, a student is a withdrawal for Title IV purposed is the student ceases attendance at any point prior to completing the payment period or period of enrollment, unless the school obtains written confirmation from the student at the time of the withdrawal that he or she will attend a module that begins later in the same payment period or period of enrollment.