Return of Federal Funds
Financial aid programs managed by the federal government are called Title IV funds and include the Federal Direct Unsubsidized Loan and Graduate PLUS Loan. Title IV funds are awarded with the understanding that the student will attend school for the entire period for which the assistance was offered. However, should students need to take a leave of absence or withdraw, they may no longer be eligible for the full amount of Title IV funds awarded to them. Federal law requires that the Financial Aid Office determine at what point Title IV funds will cease to be made available once the students’ enrollment has ended, and any unearned funds will be returned to the federal financial aid program. The federal government provides financial aid offices with a schedule that is used to determine how much of the Title IV funds students have earned if they take a leave of absence or withdraw. The Financial Aid Office will determine what amount will be returned to the federal program based on the date the student notifies their academic advisor or program administrator that they wish to withdraw, thus beginning the withdrawal process. If students have completed 60 percent or less of a given term, the Financial Aid Office uses the schedule provided by the federal government to determine the refund. If students have completed more than 60 percent of a term, they are considered to have earned 100 percent of their Title IV funds for that term. Federal funds are returned in the following order: Federal Direct Unsubsidized Stafford, Federal Graduate PLUS loans. Additional information regarding return of financial aid funds may be obtained from the Financial aid office.