Skip to Main Content

Return of Title IV Funds

INTRODUCTION AND PURPOSE  

Federal law and regulations require Rosalind Franklin University to calculate a return of Title IV funds for any student who withdraws, takes a leave of absence or does not complete an enrollment period or payment period, and who has received financial aid through the federal Title IV programs. This calculation is performed using a specific formula required by the U.S. Department of Education.

Title IV programs include Direct Unsubsidized loans and Graduate PLUS loans. Title IV funds are awarded to a student under the assumption that the student will attend school for the entire enrollment period or payment period for which the aid is awarded. When a student withdraws, or takes a leave of absence the student may no longer be eligible for the full amount of Title IV funds received. The return of Title IV funds calculation is based on the percentage of the enrollment period or payment period completed and the amount of Title IV aid disbursed. The return of Title IV funds calculation is separate and different from the calculation for refund of Tuition and Fees.

SCOPE AND APPLICABILITY.  

This policy applies to all students receiving financial aid.

POLICY STATEMENTS.  

There are two required calculations to determine the return of Title IV funds: the amount of unearned aid the withdrawn student is responsible for returning and the amount of aid the school is responsible for returning. The Office of Student Financial Services  follows guidance provided by the U.S. Department of Education to calculate the return of Title IV funds

Procedures

The calculation for return of Title IV funds is based upon the official withdrawal date determined by the Registrar's Office. The number of days completed is divided by the total number of days in the enrollment period or payment period to identify the percentage of time the student has completed. This will be the percentage of aid actually earned by the student at the time of withdrawal.

If 60% or more of the enrollment period or payment period is completed, there is no return of the Title IV funds for that period and the student is considered to have earned 100% of the Title IV funds received.

If the percentage is less than 60%, this percentage is multiplied by the total amount of Title IV aid to arrive at the amount of earned aid. The difference between the amount of earned aid and the total amount of Title IV aid is the amount of unearned aid.

The amount of unearned aid the University is responsible for returning

The institutional charges (tuition, fees, etc. for the entire enrollment period or payment period) are multiplied by the percentage of unearned aid to determine the amount the University is responsible for returning. Any amount required to be returned by the University must be done no later than 45 days from the date of determining the student withdrew or has taken a leave of absence.

The amount the school is responsible for returning is compared to the total amount of unearned aid; the lesser amount is then returned to the student’s loans in the following order: Direct Unsubsidized loan, then Graduate PLUS loan. This amount is charged to the student’s account. Depending on the results of the Tuition Refund Policy, it is possible that the student would then owe the University for the remaining unpaid portion of tuition and fees.

The amount of unearned aid the student is responsible for returning

The student is responsible for returning any portion of the unearned aid that is not returned by the University. This is in addition to any refund money from the University that is required to be returned. For any unearned aid that came from Title IV loans, the student does not have to return the funds immediately, but instead is responsible for repaying those funds according to the terms of the promissory note.

A student's failure to return funds they are not eligible to receive will result in the student being ineligible for further financial aid. The school and the U.S. Department of Education may also seek legal action against the student to collect any funds the student is not entitled to retain.

Post-Withdrawal Disbursements

At the time of withdrawal, if less Title IV aid has been received than the amount earned, the student may be eligible to receive additional funds in a post-withdrawal disbursement. In this case the Office of Financial Aid will inform the student of this eligibility within 30 days from the date of withdrawal or leave of absence. The student may then request the disbursement of these additional funds. The student may also decline some or all of the funds to prevent the incurrence of additional debt.

Points of Contact

Associate Vice President of Student Financial Services
Assistant Director of Financial Aid