Return of Federal Title IV Funds

When a student completely withdraws from the College during an academic period for which he or she is a recipient of Title IV funds, the College is required to determine whether the return of Title IV funds must be made according to statutory and regulatory requirements. The rules that govern the return of Title IV funds assume that a student earns his or her aid based upon the period of time that the student remains enrolled.

Explanation of terms:

• Disbursements/disburse/disbursed - payment of the loan funds to the borrower by the school.  Students generally receive their federal student loan in two disbursements.
• Earned - the percentage amount of Title IV aid that the student receives.
• Unearned - the difference between Title IV aid that was disbursed or could have been disbursed for the payment period of enrollment and the amount of Title IV aid that was earned when a student withdrew.

During the first sixty percent (60%) of an enrollment period, a student “earns” Title IV funds in direct proportion to the length of time that he or she remains enrolled. The percentage of time during an academic period that a student remained enrolled is the percentage of disbursable aid for that period that the student earned.

Assistance is “disbursed” if a student could have received it at that point of an academic period when the student withdrew from the College. Total disbursable assistance includes the amount of funding that was disbursed and that which could have been disbursed but was not based on the student’s date of withdrawal. A student who remains enrolled at the College beyond the sixty percent (60%) point of an academic period is presumed to have earned all aid for that period. Unearned Title IV funds, other than Federal Work Study, must be returned.

Unearned assistance is the amount of disbursed Title IV funds that exceeds the amount of Title IV funds earned under statutory and regulatory guidelines. The responsibility to repay unearned Title IV funds is shared by the College and the student in proportion to the Title IV funds each is assumed to possess. The College will notify, in writing, a student who is required to repay and return unearned Title IV funds prior to the end of the enrollment period.

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