Return of Title IV Funds Policy

Federal regulations require a school to have a written tuition and fees refund policy and a Return of Title IV (Federal Aid) Funds policy to be applied to students who withdraw during the term for which federal aid has been received. This policy addresses how Title IV funds are handled if the recipient of those funds completely terminates enrollment (i.e., cancels his/her registration, withdraws, or is dismissed) or stops attending classes prior to the end of a term.

When a student terminates enrollment after beginning attendance, that student may no longer be eligible for the full amount of Title IV funds that he or she was originally scheduled to receive.  In this case, the amount of Title IV loan assistance earned by the student must be determined.  If the student does not complete more than 60% of the enrollment period and the amount of Title IV aid disbursed to the student is determined to be greater than the amount the student earned, the unearned funds must be returned.  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 may receive a Post-withdrawal disbursement.  After the 60% point in the period of enrollment, a student has earned 100% of the Title IV funds he or she was scheduled to receive during the period and a return is not required.

The Return of Title IV funds calculation is completed by the Financial Aid Office in accordance with the federal regulations set forth in the Higher Education Act of 1965 and the Return worksheet provided by the Department of Education.  To determine the amount of earned and unearned aid, the Financial Aid Office will calculate the percentage of the enrollment period the student completed.  If any amount of aid is determined to be unearned, institutional charges are used to determine the portion of the unearned Title IV aid that the school is responsible for returning. The Financial Aid Office will include all appropriate SKSM fees in the Return calculation.  The institutional charges used in the calculation usually are the charges that were initially assessed for the entire period of enrollment. Initial charges may only be adjusted by those changes the Finance Office made prior to the student’s withdrawal (for example, for a change in enrollment status unrelated to the withdrawal).

Once the Financial Aid Office determines the amount of unearned aid that the school is responsible for returning, the student and the Finance Office will be notified.  The e-mail and/or written letter to the student will specify the amount of aid that must be returned to the Title IV loan program by the school and the amount that must be repaid by the seminarian in accordance with the terms outlined on his or her federal Master Promissory Note.  If the school’s portion of the funds to be returned creates a balance due on the student’s account, the student will be billed for the amount due.

This policy is based on 34 CFR, Section 668.22 of Title IV of the Higher Education Act of 1965, as amended.  Further details are available at the GTU Consortial Financial Aid Office.  For further information, please contact the Financial Aid Office at (510) 649-2469 or at finaid@gtu.edu.