Return of Title IV, Higher Education Act (HEA) Policy
When you apply for financial aid, you鈥檙e agreeing to use the funds for your education. If you decide to withdraw from your program before finishing, some of the financial aid you received may have to be returned. 日韩无码 will figure out how much needs to be returned based on the policies listed below.
Earned Funds
Even though your financial aid is paid to your student account at the start of each term, you actually earn the funds as you go through the term. If you withdraw before finishing the term, the amount of aid you've earned is calculated using a specific formula.
If you (or 日韩无码 or your parent on your behalf) didn't get the aid you earned, you might be able to get the rest through a post-withdrawal disbursement. But if you got more aid that you earned, the extra money has to be returned by either you or 日韩无码.
The amount of aid you have earn is based on how much of the term you completed. For example, if you completed 30% of the term, you earn 30% of your aid. Once you have completed more than 60% of the term, you earn all the aid for that term.
You won't have to return any aid if you meet one of these conditions:
- You graduate.
- You successfully complete a class or multiple classes that make up at least 49% of the term (in a program with modules).
- You successfully complete a class or multiple classes that comprise at least half-time enrollment (in a program with modules).
Post-Withdrawal Disbursements
If you didn鈥檛 get all the financial aid you earned, you might be eligible for a post-withdrawal disbursement. If this includes loan money, 日韩无码 needs your permission to give it to you. You can choose to decline some or all of the loan funds to avoid extra debt.
日韩无码 might automatically use some or all of your post-withdrawal grant money for tuition, fees, and 日韩无码 food and housing. For other charges, 日韩无码 needs your permission to use the grant money. If you don鈥檛 give permission (some schools ask for this when you enroll), you鈥檒l be offered the funds. But, it might be a good idea to let 日韩无码 keep the money to lower your debt with 日韩无码.
Some Title IV funds you were supposed to get can't be given to you if you withdraw because of certain eligibility rules. For example, if you're a first-time, first-year undergraduate and you withdraw before completing the first 30 days of your program you won't get any Direct Loan funds you would have received if you stayed enrolled beyond 30 days.
Return of Title IV Funds
If you, 日韩无码, or your parent received extra Title IV funds that need to be returned, 日韩无码 has to return the lesser of:
- 日韩无码 charges multiplied by the unearned percentage of your funds, or
- The total amount of extra funds.
日韩无码 has to return this amount even if we didn't keep this amount of your Title IV funds.
If 日韩无码 doesn鈥檛 have to return all the extra funds, you might have to return the rest. For any loan funds you need to return, you (or your parent for a Direct PLUS Loan) will repay them according to the loan terms (promissory note), meaning you won鈥檛 have to pay back the loan immediately but will make scheduled payments over time.
Any unearned grant funds you need to return are called an overpayment. The most you have to repay for a grant overpayment is half of the grant funds you got or were supposed to get. You don鈥檛 have to repay a grant overpayment if the original amount is $50 or less. You need to arrange with 日韩无码 or the Department of Education to return the unearned grant funds.
The rules for returning Title IV funds when you withdraw are different from 日韩无码鈥檚 refund policy. So, you might still owe money to 日韩无码 for unpaid charges. 日韩无码 might also charge you for any Title IV funds it had to return. Learn more on the steps for officially withdrawing.
Return of Title IV Questions
If you have questions about your Title IV program funds, you may call the Federal Student Aid Information Center at 1-800-4-FEDAID (1-800-433-3243). TTY users may call 1-800-730-8913. You can also find information by exploring online.
This policy is subject to change at any time, and without prior notice.