The 1998 amendments to the Higher Education Act made substantial changes to the way an institution will treat a student who fails to complete a period of attendance for which he or she has been charged.
A student who withdraws from all classes may only keep the financial aid they have earned up to the time of withdrawal. Title IV funds that were disbursed in excess of the earned amounts must be returned.
The Return of Title IV Funds policy states that a student has earned the portion of Title IV aid which directly corresponds to the percentage of days completed within an academic term up to and including 60% of the term. Once a student has completed more than 60% of the term, the student has earned 100% of his/her Title IV aid. All calendar days within an academic term are counted except for periods of five days or longer when the school is not in session.
If a refund is due by the school, it will be made to the appropriate Title IV fund within 45 days of the date of official withdrawal or within 45 days of the date of determination of withdrawal if the student does not officially withdraw.
The order of refunds is as follows:
Examples of Title IV funds calculations are available upon request from the Financial Aid office.