The US Department of Education requires institutions to apply the Return to Title IV Funds policy for students withdrawing from a university who receive Title IV financial aid.
Federal Title IV financial aid includes:
Federal Pell Grant
Federal Supplemental Educational Opportunity Grant (FSEOG)
Federal TEACH Grant
Direct Subsidized and Unsubsidized Loans
Direct PLUS Loans
If the amount of Title IV aid a student has earned is greater than the amount of aid that disbursed prior to the student withdrawing, a post-withdrawal disbursement may be due. If the student is eligible for a post-withdrawal disbursement of a grant, it must be disbursed within 45 days after the date it is determined the student withdrew. A post-withdrawal disbursement of Title IV grants does not require permission from the student.
If the post-withdrawal disbursement includes loan funds, the student must give permission before the funds can be disbursed. Students will be notified within 30 days of the date it is determined that the student withdrew if they are eligible for Direct Loans (or parents will be notified in the case of Direct Parent PLUS Loans). The notification will include:
- A confirmation deadline of 14 days
- The type and amount of loan funds the student is eligible for, and an option to accept or decline the post-withdrawal disbursement
- A notice of obligation to repay the loan funds
- A post-withdrawal disbursement must be made from available grant funds before available loan funds.
If the post-withdrawal disbursement results in a credit balance, the credit will be refunded to the student and/or parent within 14 days after the credit balance has occurred.