Return of Title IV Funds
The law specifies how the University must determine the amount of SFA program assistance a student earns if he or she withdraws. The University will calculate the amount of Title IV aid that a student has earned based on a payment period. The student will be obligated for any tuition; fees, books or equipment not covered by Title IV funds.
The law requires that when a student withdraws during a payment period, the amount of SFA program assistance that he or she has earned up to that point is determined by a specific formula. If the student has received (or your school received on his or her behalf) less assistance than the amount earned for the payment period, he or she will be able to receive those additional funds. If a student has received more assistance than he or she has earned, the excess funds must be returned.
The amount of assistance that a student has earned is determined on a pro-rata basis. That is, if 30 percent of the payment period has been completed, the student has earned 30 percent of the assistance that he or she was originally scheduled to receive for the payment period. Once a student has completed more than 60 percent of the payment period, he or she will have earned all of the SFA assistance.
If a student receives excess funds that must be returned, the University must return a portion of the excess equal to the lesser of:
The institutional charges (which are prorated for the payment period) multiplied by the unearned percentage of the funds; or
The entire amount of the excess funds
If the school is not required to return all the excess funds, the student must return the remaining amount, even if all of the funds were applied to his or her school account. Any loan funds that the student must return must be repaid in accordance with the terms of the promissory note. That is, the student makes scheduled payments to the holder of the loan over a period of time.