Return of Title IV Funds
The Office of Student Financial Services is required by federal statute to recalculate federal financial aid eligibility for students who withdraw, drop out, are dismissed, or take a leave of absence prior to completing 60% of a payment period or term. The federal Title IV financial aid programs must be recalculated in these situations.
If a student leaves the institution prior to completing 60% of a payment period or term, the financial aid office recalculates eligibility for Title IV funds. Recalculation is based on the percentage of earned aid using the following Federal Return of Title IV funds formula:
Percentage of payment period or term completed = the number of days completed up to the withdrawal date divided by the total days in the payment period or term. (Any break of five days or more is not counted as part of the days in the term.) This percentage is also the percentage of earned aid.
Funds are returned to the appropriate federal program based on the percentage of unearned aid using the following formula:
Aid to be returned = (100% of the aid that could be disbursed minus the percentage of earned aid) multiplied by the total amount of aid that could have been disbursed during the payment period or term.
If a student earned less aid than was disbursed, the institution would be required to return a portion of the funds and the student would be required to return a portion of the funds. Keep in mind that when Title IV funds are returned, the student borrower may owe a debit balance to the institution.
If a student earned more aid than was disbursed to him/her, the institution would owe the student a post-withdrawal disbursement which must be paid within 120 days of the student’s withdrawal. The institution must return the amount of Title IV funds for which it is responsible no later than 30 days after the date of the determination of the date of the student’s withdrawal.
Refunds are allocated in the following order:
How do classes taken at another institution and transferred to our school affect a student’s SAP?
All credits accepted for transfer to the student’s program of study are taken into consideration as both attempted and earned credits. Grades earned at other institutions are not, however, counted when computing the student’s GPA.
How often is a student’s SAP reviewed and how are students notified?
Financial aid recipients are reviewed for SAP at the end of each quarter of enrollment (Summer, Fall, Winter, Spring). Letters are mailed to students who do not meet the SAP standards and are placed either in a warning status or who lose eligibility.
Financial Aid Warning Status
Students who fail to meet the minimum financial aid Satisfactory Academic Progress standards will be placed on Financial Aid Warning for the subsequent quarter/period of enrollment.
Students are still eligible for financial aid during the “Warning” quarter/period.
Students applying for financial aid will be placed immediately into Financial Aid Warning status if they did not meet SAP standards in the previous period of enrollment prior to applying for aid.
Financial Aid Suspension – Losing Title IV Eligibility
Students on Financial Aid Warning, who fail to maintain the minimum SAP standard during the Warning quarter/period, will be placed on Financial Aid Suspension status for subsequent quarters/periods of enrollment. No financial aid will be disbursed during subsequent quarters/periods of enrollment until the student regains financial aid eligibility.
Students applying for financial aid will not be eligible for assistance and will immediately be placed on Financial Aid Suspension status if they did not meet the minimum financial aid SAP standards, based on the two previous periods of enrollment prior to applying for financial aid. Students who do not complete their program within the maximum timeframe lose eligibility for financial aid and are placed on Financial Aid Suspension status.
Reinstatement of Aid after Financial Aid Suspension Status
A student may regain eligibility for financial aid after Financial Aid Suspension status only by in one of the following ways:
Students who wish to appeal Financial Aid Suspension status must submit an appeal of Financial Aid Suspended status in writing to the Financial Aid Appeals Committee by the date specified in the Financial Aid Suspended notification letter. The committee will review the appeal and notify the student in writing of their decision within 14 working days after the Appeals Committee meets and makes its determination. Appeals should include:
The grounds for appeal (i.e., working too many hours, etc.)
The Financial Aid Appeals Committee will review the appeal and consult with academic advisers and other involved parties as warranted. If it is determined that the student will not be able to meet the SAP standards by the end of the next semester/period of enrollment but the Committee is in agreement that the student’s grounds for appeal are reasonable and the student has a reasonable chance to succeed and graduate, then if the appeal is approved the student will also be placed on an Academic Plan. Students will receive written notification of the decision. All decisions on such appeals are final.
Students who lose eligibility for financial aid due to not meeting the minimum SAP standards more than one time during their program may submit an appeal each time.
Students who lose eligibility and submit an appeal may be placed on an Academic Plan if the appeal is approved. The purpose of an academic plan is to support the student in bringing himself or herself back into compliance with the financial aid SAP standards by a specific point in time in order to ensure that the student will be able to successfully complete the degree or certificate program. The academic plan will be specifically tailored to the student and may include milestones and specific requirements such as a reduced course load, specific courses or tutoring. Students on an academic plan are still responsible to meet the SAP requirements in the subsequent semester/period of enrollment and will lose eligibility if the SAP standards are not met, and need to go through the appeal process in order to regain eligibility. The student’s progress in their academic plan will be taken into account in any subsequent appeal process of financial aid eligibility.
Is financial aid warning or suspension the same as academic probation?
No. Financial aid recipients must meet the financial aid satisfactory academic progress standards, which is at least as stringent as the schools’ academic policy standards, in accordance with federal Title IV regulations. Students should consult the Standards for Good Academic Standing for more information on that standard. Students on academic probation may also be on Financial Aid Suspension, or they may be on Financial Aid Warning status.
Where Can Students Get More Information?
Contact the Financial Aid Office at 305-751-0001.