Financial Aid

Withdrawing and Returning of Federal Aid

We all change our minds sometimes. If you come to UWest and then are called to a different path we wish you all good fortune. But… you may have to return some money.

Please see below for details.

Return of Title IV Funds (R2T4)

Effective October 7, 2000 Title IV Refund Regulations require students who withdraw from all of their classes prior to the 60 percent point of the payment period (defined as fall or spring semester or summer term) to return the unearned portion of their Title IV financial aid to the Department of Education. Additionally, institutions may be required to return a portion of unearned funds to the Department of Education, and some students may be entitled to a post-withdrawal disbursement. UWest elected to apply these regulations beginning with the Fall 2007 semester.

Funds to include in a Return to Title IV calculation

Title IV funds which must be included in the refund calculations are listed in the priority order of their return as follows:

  1. Direct Unsubsidized Stafford loans;
  2. Direct Subsidized Stafford loans;
  3. Direct PLUS loans;
  4. Pell Grants;
  5. Federal Supplemental Educational Opportunity Grant (FSEOG)
  6. Cal Grants
  7. Other Title IV Assistance
  8. Other Assistance to the Students

The institution does not participate in the Perkins loans programs.

Students who received or could have received only Federal Work Study funds are exempt from Return of Title IV Refund regulation.

Return of Title IV for students who withdraw due to military deployment

Student must submit a copy of the military deployment to the Registrar’s Office and the Financial Aid Office. If a Title IV eligible student withdraws because of being called to active duty, or has been otherwise impacted by the military mobilization, the school must perform Return of Title IV calculations that are required by statute and regulations. If those calculations result in the school being required to return funds to one or more of the Title IV programs, it must do so.

Return of Title IV Funds for Students Who Were Affected by a Disaster

The Secretary of the US Education Department is authorized to waive the amount of a student’s Title IV grant overpayment if the student withdrew from the institution because of a major disaster under specified conditions. The Secretary’s exercising of this waiver authority remains in effect until it is specifically withdrawn. A Title IV grant overpayment otherwise due from a student under the Return of Title IV Funds requirements is waived if the students withdrew because of a disaster under the following conditions:

  1. The student was residing in, employed in, or attending an intuition that is located in an area in which the President has declared that a major disaster exists:
  2. The student withdrew because of the impact of the disaster on the student or the institution; and
  3. The student’s withdrawal occurred within the academic year during which the designation as a major disaster occurred or during the next succeeding academic year.

The intuition is not required to notify the student or NSLDS of the overpayment to the Department of Education, in addition, an institution must not apply any Title IV credit balance to pay down the grant overpayment. An institution must document in the student’s file the application of this waiver as well as the amount of any overpayment that has been waived.

Treatment of Title IV Aid When a Student Withdraws

When a student withdraws during the payment period or period pf enrollment, the amount of Title IV program assistance earned up to that point is determined by a specific formula.

  1. If the amount disbursed to the student is/was greater than the amount earned, the unearned funds must be returned.
  2. If the amount disbursed to the student is less than the amount earned, the student is eligible to receive a post-withdrawal disbursement of the earned aid that was not received.
  3. Refund calculations are not applied to students who withdraw from classes prior to the first day of attendance.
  4. Students who receive aid prior to the first day of attendance and who withdraw from all classes prior to the first day of attendance will be required to repay all of the Title IV Funds disbursed.

The amount of assistance earned is determined on a prorated basis. For example, if a student completed 30 percent of the payment period or period of enrollment, the student earns 30 percent of the assistance he or she was originally scheduled to receive. Once the student has completed more than 60 percent of the payment period or period of enrollment, he or she earns all the assistance scheduled for that period.

A student who did not receive all of the funds earned may be due a post-withdrawal disbursement. If a post-withdrawal disbursement includes loan funds, the institution must receive the student’s permission before it can disburse them. A student may choose to decline some or all of the loan funds so that he or she does not incur additional debt. The institution may automatically use all or a portion of the post –withdrawal disbursement of grant funds to pau for tuition fees, and room and board charges (as contracted with the institution). The institution needs the student’s permission to use the post-withdrawal grant disbursement for all other school charges. A student who chooses not to grant permission will be offered the funds. However, it may be in the student’s best interest to allow the institution to keep the funds to reduce debt.

Some Title IV funds that the student was scheduled to receive may not be disbursed because of other eligibility requirements. For example, a first-time, first-year undergraduate who does not complete the first 30 days of a program before withdrawal will not receive any Direct Loan funds that would have been received of the student had remained enrolled past the 30th day.

If the student receives (or the institution or parent receives on the student’s behalf) excess Title IV program funds that must be returned, the institution must return a portion of the excess equal to the lesser of

  • The student’s institutional charges multiplied by the unearned percentage of his or her funds, or
  • The entire amount of excess funds.

The institution must return this amount even if it did not keep this amount of the student’s Title IV program funds. If the institution is not required to return all of the excess funds, the student must return the remaining amount. For any loan funds that must be returned, the student (or the student’s parent for a PLUS Loan) must repay in accordance with the terms of the promissory note. That is, the student must make scheduled payments to the holder of the loan over a period of time.

Any amount of unearned grant funds the student must return is called an overpayment. The maximum amount of a grant overpayment must be repaid is half of the grant funds received or scheduled to be received. The student must make arrangements with the institution or the Department of Education to return the unearned that funds.

The requirements for Title IV program funds when a student withdraws are separate from any refund policy that the institution may have. UWest’s refund policy may be found in this catalog under tuition and Fees. A student may still owe funds to the institution to cover unpaid institutional charges. The institution may also charge a student for any Title IV program funds that the school is required to return.

The Register’s Office is the designated office of record where students provide notification of withdrawal. The last drop date will be used as the withdrawal date in the calculation. The amount that could have been disbursed will be determined by the enrollment status as of the date the student completely withdraws.