► Cost of Attendance (COA)
► Expected Family Contribution
► Financial Aid Notification
► Satisfactory Academic Progress
► Quality Improvement/Assurance
► How Aid is Awarded
► How Aid is Disbursed
Return of Title IV Funds - Regulatory Summary of 668.21 and 668.22
When a student who is a recipient of Title IV loan or grant assistance withdraws during a payment period or period of enrollment in which the student began attendance, the institution must determine the amount of Title IV grant or loan assistance earned as of the student's withdrawal date.
If the total amount of Title IV grants or loans, or both, that the student earned is greater than the total amount of the Title IV grants or loans disburse to the student or on behalf of the student in the case of a parent PLUS loan as of the date of the institution's determination when the student withdrew, the difference between these amounts must be treated as a post-withdrawal disbursement.
The following programs are defined as Title IV grant or loan assistance:
The withdrawal date for a student who withdraws from an institution that is not required to take attendance (e.g. IUPUI) is earlier date of:
Calculate by dividing the total number of calendar days in the payment period into the number of calendar days completed as of the student's withdrawal date.
The percentage of Title IV assistance earned is equal to the percentage of the payment period completed as of the withdrawal date. If the withdrawal date occurs after the 60 percent point, then the percentage of Title IV assistance earned is 100 percent. This percentage is then applied to the total amount of Title IV grant and loan assistance that was disbursed (and that could have been disbursed) to the student, or on the student's behalf in the case of a parent PLUS loan, for the payment period for which it was awarded.
The unearned amount of Title IV assistance to be returned is calculated by subtracting the amount of Title IV assistance earned by the student from the amount of Title IV aid that was disbursed to the student or on behalf of the student in the case of a parent PLUS loan.
The institution must return the lesser of the calculated total amount of unearned Title IV assistance or an amount equal to the total institutional charges the student incurs for the payment period multiplied by the percentage of awarded Title IV grant and loan assistance that has not been earned by the student.
Institutional charges are tuition, fees, room and board (if the students contracts with the institution for room and board), and other educationally-related expenses assessed by the institution.
The student returns unearned Title IV assistance minus the amount the institution returns. Any Title IV loan program is returned in accordance with the terms of the loan and any Title IV grant program as an overpayment of the grant. However, a student is not required to return the portion of a grant overpayment amount that is equal to or less than 50 percent of the total grant assistance that was disbursed for a payment period or a grant overpayment amount of 50 dollars or less that is not a remaining balance.
A student who owes an overpayment remains eligible for Title IV and HEA program funds through the earliest of 45 days from the institutional notification of the overpayment or 45 days from the date the institution was required to notify the student of the overpayment if, during the 45 days, the student repays the overpayment in full to the institution or enters into a repayment agreement that is satisfactory with the institution with a maximum payment in full within two years.
The institution must notify a student within 30 days of the institution's determination that the student withdrew and owes a Title IV or HEA overpayment in order to recover the overpayment. The notification provides the student with terms to permit the student to repay the overpayment while maintaining Title IV and HEA program funds with repayment of the full amount of the overpayment within two years of the date of the institution's determination the student withdrew.
In the context of Return of Title IV funds, a student is no longer eligible if they do not enter into a repayment agreement with the 45 day period or fails to meet the terms of the repayment agreement.
Unearned funds returned by the institution or student are credited to outstanding Title IV loan balances made to the student or on behalf of the student for the payment period. Excess funds must be credited to outstanding balances in the following order:
An institution must return the funds for which it is responsible as soon as possible but no later than 45 days after the date of its determination that the student withdrew. An institution must determine the withdrawal date for a student that does not provide notification to the institution no later than 30 days after the end of the earlier of the payment period or period of enrollment.