Return Of Title IV Funds
| Applies to: | Original Policy Date: | Date of Last Review: | Approved by: |
|---|---|---|---|
| Applicable Students | July 1, 2014 | July 2025 | Dr. John Nicklow, President |
Policy Owner: Financial Aid
Policy Purpose
To ensure compliance with federal regulations (34 CFR § 668.22) regarding the return of Title IV funds when a student withdraws from the university before completing the term.
Policy Scope
This policy applies to all students receiving Title IV federal financial aid, specifically Federal Pell Grants, Iraq and Afghanistan Service Grants, Federal Direct Loans (Subsidized and Unsubsidized), and Federal Direct PLUS Loans.
Policy Statement
Students earn Title IV aid based on the percentage of the term completed. If a student officially or unofficially withdraws before completing the term, Florida Tech must calculate and return any unearned portion to the U.S. Department of Education. Aid is earned proportionally until 60.1% of the term is completed, after which 100% of aid is considered earned.
Procedures/Guidelines
Attendance and Withdrawal Determination: Florida Tech does not require attendance-taking; however, documentation of academic activity may be used to establish withdrawal dates.
- Official Withdrawal: Based on the earliest date the student notifies the Financial Aid Office in writing or verbally. In cases where a university withdrawal form has multiple dates, the earliest of the dates listed will be used as the official date of withdrawal.
- Unofficial Withdrawal: Occurs when a student ceases attendance without notification. The withdrawal date is the midpoint of the term or the last documented date of academic activity.
Return Calculation
Once a student is determined to have withdrawn, the university is required to calculate the amount of Title IV aid that is considered unearned unless the student qualifies for an exemption (see exemptions at the end of this section). The amount of aid the student earned is calculated using the formula below, which mandated by the Department of Education.
- Formula:
- Earned Aid %=Days Attended Days in Term Earned Aid %=Days in TermDays Attended
- Aid is earned proportionally until 60.1% of the term is completed. After that, 100% of aid is considered earned.
- Return Amount:
If the student receives (or the school or parent receives on the student’s behalf) excess Title IV program funds that must be returned, the school must return a portion of the excess equal to the lesser of:
- Institutional charges × unearned aid percentage, or
- Total unearned aid
- Deadlines:
- Calculation within 30 days of withdrawal determination
- Funds returned within 45 days
- Order of Return: Funds are returned in the following order:
- Unsubsidized Direct Loan
- Subsidized Direct Loan
- Direct PLUS Loan
- Federal Pell Grant
- FSEOG
- Iraq and Afghanistan Service Grant
Notifications
The university will provide notifications to applicable students.
Post-Withdrawal Disbursements (PWD)
If a student earned more aid than was disbursed, they may be eligible for a PWD. Loan funds require student (or parent) permission before disbursement, while grant funds may be applied to tuition and fees without permission; other charges require consent. Students have 14 days to respond to a PWD offer.
Student Responsibility
Students may owe a balance to Florida Tech after Title IV funds are returned. They are responsible for repaying any unearned aid or institutional charges.
Definitions
Withdrawal: Ceasing enrollment in all courses during a term or semester (also referred to as payment period or period of enrollment), based on the earliest date the student notifies the Financial Aid Office in writing or verbally.
Unofficial Withdrawal: Ceasing attendance without notifying Florida Tech, determined by the midpoint of the term or the last documented date of academic activity.
Title IV Aid: Federal financial aid programs governed by Title IV of the Higher Education Act, such as Federal Pell Grants, Iraq and Afghanistan Service Grants, Direct Loans, Direct PLUS Loans, Federal Supplemental Educational Opportunity Grants (FSEOGs).
Compliance Reference
34 CFR § 668.22
Responsibilities
The Registrar’s Office is responsible for entering official withdrawal information in the system of record.
The Office of Financial Aid is responsible for reviewing the system of record at least once every 29 days to identify students who have withdrawn from all of courses prior to the close of the term and perform Title IV calculations for students who received Title IV Aid.
The Finance Office is responsible for returning funds through the G6 system.
Enforcement
Employees responsible for administering Title IV funds must comply with this policy and federal regulations. Failure to do so may result in disciplinary action.