Return of Title IV Funds
The federal regulation requires a return of Title IV funds if a student received federal financial assistance and withdrew or ceased attendance for any reason on or before completing 60% of the enrollment period. The percentage of Title IV aid to be returned is equal to the number of calendar days remaining in the enrollment period divided by the number of calendar days in the enrollment period. Scheduled breaks of more than five consecutive days are excluded from the total number of calendar days.
The Financial Aid Office is required to calculate how much federal financial aid a student has earned if that student:
- Completely withdraws, or
- Stops attending before completing the semester, or
- Does not complete all modules (courses which do not span the entire length of the payment period)
*For students enrolled in modules: A student is not considered as withdrawn if the Financial Aid Office obtains a written confirmation, at the time of the withdrawal that he or she will attend a module that begins later in the same enrollment period. The newly added courses will also count as a positive confirmation of future attendance if the student registered for the course(s) at the time of a withdrawal. Dropping courses in a later module, while still attending a current module, is also not considered to have withdrawn.
The official withdrawal date will be either the date the student begins the withdrawal process or the date the student provides official notification of intent to withdraw. The unofficial withdrawal (for a student with failing grade(s)) will be reported by the instructor(s) based on the last date of attendance.
Percentage of Title IV Aid Earned
Amount of Title IV Aid Earned
Amount of Title IV Aid to be Returned
______ = % Completed
Total Days in the Enrollment Period
Total Disbursed Aid x % Completed
= Earned Aid
Total Disbursed Aid-Earned Aid
= Amount to be Returned
- If the percentage completed is higher than 60%, then the student has earned all the Title IV funds for the period.
- If a student who received financial aid never attends, all disbursed funds will be returned.
Return of Unearned Title IV Aid (34CFR 668.22)
The federal regulations require schools to perform calculations within 30 days from the date the school determines a student’s withdrawal and to return the funds within 45 days of the calculation.
If a student does not pay the balance owed to the institution within 45 days of the date of notification, the balance will be forwarded to the State of Colorado Collections Agency and the student’s records will be placed on financial hold. In addition, any grant funds owed to the government will be transferred and reported as an “overpayment” to the U.S. Department of Education.
Aid Programs Subject to the Repayment Calculation will be returned in this Order
- Federal Direct Loans: Unsubsidized and Subsidized
- Federal Parent PLUS Loan
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- Other Federal Aid