Title IV Funds (R2T4) Policy
Refund Policy for Title IV Funds
In addition to the institutional refund policy, federal regulations require that students who withdraw from all classes may only keep the federal financial aid they have “earned” up to the time of withdrawal. If a student received any financial aid under federal Title IV programs (FSEOG, Pell Grant, Federal Direct Student Loan, and Federal Direct Parent Plus Loan), a portion of these funds might need to be returned under the guidance of the federal formula, except the Federal Work-Study Program.
The day the student withdraws is the date (determined by the University).
- The student began the official withdrawal process prescribed by contacting the Student Life Office; or
- The student otherwise provided the University with official notification of the intent to withdraw.
For the student who does not begin the school’s official withdrawal process or notify the school of the intent to withdraw, the midpoint of the period of enrollment for which Title IV assistance was disbursed is used (unless the institution can document a later date).
If the school determines the student did not begin the withdrawal process or notify the school of the intent to withdraw due to illness, accident, grievous personal loss, or other such circumstances beyond the student’s control, then the school may determine the appropriate withdrawal date.
To receive a refund, a student must officially withdraw from the university. Charges shall continue up to the day the student begins the official withdrawal process. It is the student’s responsibility to contact the Student Engagement Office to begin the official withdrawal process. This policy applies to all traditional undergraduate students and terms of enrollment (i.e. commuters, residents, full-time, part-time, and summer school).
- Tuition, room and board will be refunded according to the following schedule:
Before Classes Begin
During 1st Week
During 2nd Week
After 2nd Week
- There will be no refund of fees.
- Federal funds shall be returned in accordance with federal policies at the time of withdrawal. Students withdrawing prior to completion of 60% of a semester may owe additional funds due to the loss of federal aid. Students are urged to consider this factor prior to making the decision to withdraw from school. Federal funds shall be returned in accordance with federal policies at the time of withdrawal. Students withdrawing prior to completion of 60% of a semester may owe additional funds due to the loss of federal Students are urged to consider this factor prior to making the decision to withdraw from school.
- Institutional aid shall be prorated by the same schedule as mentioned in the previous bullet item.
- Private scholarships will be used to pay any remaining balance
If the calculation indicates that funds should be returned, a specific order of refund has been established by the federal government (as applicable):
- Unsubsidized Federal Direct Loan
- Subsidized Federal Direct Loan
- Federal Perkins loan
- Federal Direct PLUS Loan
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant (SEOG)
- Federal TEACH Grant
- Other Title IV assistance (as applicable)
The school must return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution’s determination that the student withdrew.
If the amount disbursed to the student is less than the amount the student earned, and for which the student is otherwise eligible, he or she is eligible to receive a post-withdrawal disbursement of the earned aid that was not received.
If the post-withdrawal disbursement includes loan funds, the school must get the student’s permission before it can disburse them. A notification regarding the post-withdrawal disbursement will be sent to the student (or parent in the case of a Parent PLUS loan), within 30 days of the date the school determines the student’s withdrawal. A student may choose to decline some or all of the loan funds so additional debt is not incurred.
The school may automatically use all or a portion of the post-withdrawal disbursement of grant (Pell Grant and SEOG) funds for tuition, fees, and room and board charges (as contracted with the school). The school needs the student’s permission to use the post-withdrawal grant disbursement for all other school charges. If the student does not give their permission, the student will be offered the funds. However, it may be in the student’s best interest to allow the school to keep the funds to reduce any debt at the school. For any grant funds owed a student, the school must make the disbursement as soon as possible, but no later than 45 days after the date of the institution’s determination that the student withdrew.
If a student receives (or the school or parent receive on the student’s behalf ) excess Title IV program funds that must be returned based upon the calculation described above, the school must return a portion of the excess equal to the lesser of:
- The student’s institutional charges multiplied by the unearned percentage of their funds, or
- The entire amount of excess funds.
The school must return this amount even if it did not keep this amount of the student’s Title IV program funds. If the school is not required to return all of the excess funds, the student must return the remaining amount. Any loan funds that the student (or parent for a Direct PLUS Loan) must return, must be repaid in accordance with the terms of the promissory note. That is, the scheduled payments must be paid to the holder of the loan over a period of time.
Any amount of unearned grant funds that the student must return is called an overpayment. The maximum amount of a grant overpayment that a student must repay is half of the grant funds they received or were scheduled to receive. A student does not have to repay a grant overpayment if the original amount of the overpayment is $50 or less. A student must make arrangements with the school or the Department of Education to return the unearned grant funds.
The requirements for Title IV program funds when a student withdraws are separate from any refund policy that the school may have. Therefore, a student may still owe funds to the school to cover unpaid institutional charges. The school may also charge a student for any Title IV program funds that the school was required to return.
For additional information on refunds to Title IV sources, please contact the Office of Financial Aid at 847.317.8060. For additional questions regarding Title IV program funds, call the Federal Student Aid Information Center at 1-800-4-FEDAID (1-800-433-3243). TTY users may call 1-800-730-8913. Information is also available on Student Aid on the Web at http://www.studentaid.ed.gov.