Return of Title IV Funds
Federal Refund Policy for Title IV Financial Aid Recipients
When a Title IV financial aid recipient withdraws from all classes, the percentage of the period completed, based on class days will be calculated. The federal government mandates that students who withdraw may only keep the financial aid they have ‘earned’ up until the time of withdrawal. Title IV funds in excess of this amount must be returned by the University and/or Student to the Federal government. If the student withdraws from (or stops attending) all classes before 60% of the semester has been completed, you must pay back some of the financial aid you received.
To determine how much financial aid a student has earned, we will calculate the percentage of the period completed, based on calendar days. Scheduled breaks of 5 days or longer will be excluded. This percentage is then multiplied by the total amount of Title IV aid disbursed (paid) and that could have been disbursed. The Institution and/or Student must return the unearned amount of aid.
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 is eligible to receive a post withdrawal disbursement of the earned aid that was not received.
Official Withdrawals
The withdrawal date for official withdrawals is the date on which the student begins the official withdrawal process or the last documented date of attendance at an academically related activity if this date more accurately reflects the student’s withdrawal date.
Unofficial Withdrawals
The University requires instructors to provide a last date of attendance for students who have received a non-passing grade. After grades are posted for the term, a report showing all Title IV recipients who have not officially withdrawn and who have not earned any passing grades is generated.
A Return of Title IV calculation is performed within 30 days of the date of Purdue Northwest’s determination that the student withdrew and funds are returned within 45 days after the date Purdue Northwest determined the student withdrew.
Post-Withdrawal Disbursement
A post-withdrawal disbursement of Federal Title IV aid occurs when the amount of Title IV aid earned by the student is greater than the amount of the Title IV aid disbursed for the semester. A student (or parent in the case of a Plus Loan) eligible for a post-withdrawal disbursement will receive written notification from the university within 30 calendar days of the date of the school’s determination that the student has withdrawn. Purdue University Northwest must make the disbursement as soon as possible but no later than 45 days after the date of the school’s determination that the student withdrew.
Students have the right to accept or decline, some or all, of the post-withdrawal disbursement that is being offered. Students are given 14 days from the date of the notification to respond. Students are encouraged to seriously consider whether it is beneficial to accept a post-withdrawal disbursement. If the Title IV disbursement is the result of a Federal Direct Loans, it must be repaid under the terms of the appropriate promissory note being completed or previously completed. In addition, any disbursement received from Title IV funds will reduce award eligibility for the corresponding award(s) at the university, or another college attended during the same award year. Any opportunity to keep loan debt at a minimum should be considered.
All post-withdrawal disbursements are applied first to any student account balance due at Purdue University Northwest first, and any resulting credit balance will be disbursed to the student or parent within 14 days of the disbursement.
Priority of Return of Funds by the School
Priority order in which Title IV funds must be returned by Purdue Northwest:
- Unsubsidized Direct Loans
- Subsidized Direct Loans
- Direct PLUS Loans
- Federal Pell Grants
- Iraq and Afghanistan Service Grant
- Federal Supplemental Educational Opportunity Grants (FSEOG)
- Other Title IV Aid Programs
- Other Federal, State, Private or Institutional Aid
- The student
If the calculation results in an amount to be returned that exceeds the school’s portion, the student is required repay some funds.
Priority of Repayments (Return of Loans) by the Student
The initial amount of unearned Title IV aid due from the student (or parent in the case of a Plus Loan) is the amount remaining after the school’s portion has been return. These amounts are repaid by the student under the terms of the appropriate promissory note(s).
Priority of Repayments (Return of Grant Funds) by the Student
Title IV Grant funds are repaid if the amount by which the original overpayment exceeds 50% of the total Title IV grant funds disbursed (or could have been disbursed) to the student for the semester. (If the amount is less than $50.00, the student is not responsible for returning funds to Title IV grant programs.)
Priority order in which Title IV funds must be returned by the student:
- Federal Pell Grants
- Federal Supplemental Educational Opportunity Grants (FSEOG)
Credit-Hour Programs
To determine how much financial aid a student has earned, we will calculate the percentage of the period completed, based on calendar days. Scheduled breaks of 5 or more consecutive days will be excluded. This percentage is then multiplied by the total amount of Title IV aid disbursed and that could have been disbursed. Purdue Northwest and/or the student must return the unearned portion of financial aid.
This policy applies to all Title IV financial aid recipients, including first time students. You will be notified by mail if you have withdrawn from all classes and must repay a percentage of your financial aid. If you have any further questions, please contact the Bursar Office.