Chapter 6 — Return of Title IV Funds

Case Studies
CASE STUDY 1: PENNY JONES
Calculating the return of Title IV funds for a student attending a two-year community college
(semester) and receiving grants (partially disbursed).

Learning Objectives
Learn to complete Steps 1 – 4 of the Worksheet Treatment of Title IV Funds when a Student Withdraws from a
Credit Hour Program, and be able to:

• identify the basic information needed to complete the worksheet, including the withdrawal date and
date of the institution’s determination that the student withdrew;
• calculate the percentage of the period the student completed;
• calculate both the percentage and the amount of Title IV aid earned by the student;
• determine either that the student is due a post-withdrawal disbursement (PWD) of Title IV aid or that
Title IV aid must be returned; and
• determine the amount of the PWD or return as well as the additional steps required.

SCHOOL PROFILE

Everyone Should Have an Education Community College is a two-year,

public, residential, credit-hour institution.

Academic Year/Program 2 semesters

32 weeks

Period 16 weeks
110 calendar days

Period Start Date August 23

5 Consecutive Day Break No (no Sat. – Sun. classes)

Required to Take Attendance No

Method for Matching FSEOG Fund-specific

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STUDENT PROFILE

Penny Jones is a first-year student who was home-schooled in Virginia.

Charges to her account for the first semester are as follows:

Tuition and fees $ 1,000.00/16 week semester

Room and Board $ 2,250.00/16 week semester
Books and Supplies $ 400.00/16 week semester
Health Insurance $ 250.00/academic year

Balances remaining on Penny’s account include:

Health Insurance $ 250.00

Books & Supplies $ 400.00
Room & Board $ 1,250.00

School Authorized to Credit

Account for Other Charges: Yes (all charges)

Penny’s financial aid package included the following annual awards:

Pell Grant $ 3,125.00

FSEOG $ 1,500.00
State Grants $ 1,000.00
Institutional Awards $ 1,500.00

Discussion
On the first day of the fall semester, August 23, Penny received the following disbursements to her
student account:

Pell Grant $ 0.00

FSEOG $ 750.00
State Grants (not funded by LEAP) $ 500.00
Institutional Awards $ 750.00

Although Penny is grateful for the assistance, she is concerned about how her total costs for the 15
credit hours she is taking this semester and her room and board are going to be covered.

Tuition and Fees $ 1,000.00

Room and Board $ 2,250.00
Health Insurance $ 250.00
Books voucher good only at
ESHECC campus bookstore $ 400.00

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On October 8, Penny came by your office to advise that she doesn’t think she is doing very well and is
considering dropping out prior to November 1, the last day to withdraw from classes without academic
penalty. To help her make a decision, she requests information on the withdrawal process. You are fairly
certain that Penny is having a hard time adjusting to college life and want to encourage her to hang in until
the end of the semester, December 10. However, because you’re in the midst of trying to resolve your
problems reporting Pell origination records (so that you then can make Pell disbursements, including
Penny’s $1,562.50 disbursement), you don’t have time at the moment to talk to her. You ask her to set an
appointment to see you the following week, on October 13.

When Penny comes to see you on October 13, she confesses that the last class she attended was on
September 30. Because she doesn’t see how she can get caught up on the work she’s missed, she is adamant
about withdrawing, so you give her instructions on completing the college’s official withdrawal process and
advise her where she can get the appropriate form. Finally, you remind her that the school’s policy is that
the date of withdrawal is the date the student turns in the signed form (which she did on October 15).

Let’s review some basic information about Penny as well as our learning objectives for this case. Penny
attended a two-year community college, which was on the semester system. Students earned academic credits
based on credit hours taken. Before withdrawing, Penny received her FSEOG disbursement, but not her Pell
Grant.

The first thing we’ll need to do is to decide on the date of the school’s determination that Penny
withdrew. Then, we’ll complete Step 1: Student’s Title IV Aid Information, which includes:

• Title IV aid disbursed

• Title IV aid disbursed plus Title IV aid that could have been disbursed

Solution
The date of the institution’s determination is the date you were advised by Penny that she had decided to
withdraw. On the earlier date, October 8, she was only thinking about withdrawing. Date of the institution’s
determination that the student withdrew = October 13.

Step 1: Student’s Title IV Aid Information

A. Although Penny also received disbursements of state and institutional aid, only Title IV aid is
considered in the return of funds calculation. Also, because Penny’s school uses the fund-
specific method (depositing the institutional match into the school’s FSEOG account), the
nonfederal share is used in the calculation. Title IV aid disbursed = $750.00.

FSEOG $ 750.00

B. Because of your problems reporting Pell origination records, Penny’s Pell Grant had not been
disbursed yet. But, she was eligible for the disbursement, so the amount of the Pell Grant that
could have been disbursed is included in the total. Total Title IV aid disbursed plus Title IV
aid that could have been disbursed = $2,312.50.

FSEOG $ 750.00
Pell Grant $ 1,562.50

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Step 2: Percentage of Title IV Aid Earned

1. Withdrawal date = October 13

Note: Since ESHECC is not required by an outside entity to take attendance, the withdrawal date is the
date Penny provided official notice of intent to withdraw—October 13. (Note that the school’s policy
that the withdrawal date is the date the student turns in the signed withdrawal form—which she did on
October 15—is superseded by federal requirements for a student receiving Title IV aid.) Although
Penny stopped attending classes on September 30, she didn’t notify the school (begin the process)
until October 13. Remember when she came to see the FAO on October 8, she was only thinking
about withdrawing. Note that the school could have documented a last date of attendance at an
academically-related activity and used that as her withdrawal date if it so chose.

2. Payment period start date = August 23

3. Payment period end date = December 10

4. Percentage of payment period completed:

• Since the student attended a credit-hour school, the percentage of aid completed is calculated
by dividing the number of calendar days completed by the total number of calendar days in the
payment period. Number of calendar days completed in payment period = 52 calendar days

• Because the semester does not include a scheduled break of 5 or more consecutive days, all of
the calendar days in the period from August 23 to December 10 are counted. Number of
calendar days in payment period = 110 calendar days

• 52 days / 110 days = .4727, rounded to .473, or 47.3%. Percentage of payment period completed
= 47.3%

C. Percentage of payment period completed (47.3%), up to and including 60%; otherwise, if

greater than 60%, then 100%. Percentage of Title IV aid earned = 47.3%.

Step 3: Amount of Title IV Aid Earned by the Student

D. 47.3% (% of Title IV aid earned from item C) X $2,312.50 (total Title IV aid disbursed plus
Title IV aid that could have been disbursed from item B) = $1,093.812, rounded to $1,093.81.
Amount of Title IV aid earned by the student = $1,093.81.

Step 4: Total Title IV Aid to Be Disbursed or Returned

E. Because the total aid earned (item D) is greater than the total aid disbursed (item A), Penny
is due a post-withdrawal disbursement. $1,093.81 (item D) – $750.00 (item A) = $343.81. Post-
withdrawal disbursement = $343.81.

If a post-withdrawal disbursement is due the student, the next step is to complete the Post-
Withdrawal Disbursement Tracking Sheet.

F. Title IV aid to be returned = N/A

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CASE STUDY 2: PENNY JONES

Treatment of other aid consisting of federal funds when calculating the return of Title IV funds.

Discussion
Penny is the same student as in Case Study 1. The differences to the scenario are that Penny lives at
home, all of her Title IV aid was disbursed prior to her withdrawal, her $500 state grant consists of 50%
LEAP funds, and the fall semester has a scheduled break that runs Monday, October 18, through Friday,
October 22.

Solution
Date of the institution’s determination that the student withdrew = October 13

Step 1: Student’s Title IV Aid Information

A. Because the state grant consists of 50% LEAP funds, it must be included in the calculation.
Remember, aid consisting in any part of identified Title IV funds (e.g., LEAP) is included in
the calculation. Title IV aid disbursed = $2,812.50.

Pell Grant $ 1,562.50

FSEOG $ 750.00
State Grant $ 500.00

B. All her aid was disbursed. Total Title IV aid disbursed plus Title IV aid that could have been
disbursed = $2,812.50

Step 2: Percentage of Title IV Aid Earned

1. The withdrawal date stays the same. Withdrawal date = October 13

2. Payment period start date = August 23

3. Payment period end date = December 10

4. Percentage of payment period completed

• The number of calendar days completed remains the same. (Penny withdrew before the scheduled
fall break.) Number of calendar days completed in payment period = 52 calendar days.

• Because the semester includes a scheduled break of at least five consecutive days, not all of the
calendar days in the period are counted. In this situation, the break begins on Monday and ends on
Friday, and there are no classes on Saturday and Sunday. So, in addition to excluding the 5-day
break from the count of calendar days, we also exclude both weekends immediately preceding and
following the break (in this case, a total of 9 days). Number of calendar days in payment period =
101.

• 52 days ÷ 101 days = .5148, rounded to .515, or 51.5%. Percentage of payment period
completed = 51.5%.

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C. Percentage of Title IV aid earned = 51.5%. [Item C (51.5%) up to and including 60%;
otherwise, if greater than 60%, then 100%.]

Step 3: Amount of Title IV Aid Earned by Student

D. 51.5% (% of Title IV aid earned from item C) X $2,812.50 (total Title IV aid disbursed plus
Title IV aid that could have been disbursed from item B) = $1,448.437, rounded to $1448.44.
Amount of Title IV aid earned by student = $1,448.44.

Step 4: Total Title IV Aid to be Disbursed or Returned

E. Because the total Title IV aid earned (item D) is less than the aid disbursed (item A),
no post-withdrawal disbursement is due and we proceed to item F. Post-withdrawal
disbursement = N/A

F. Because the total aid disbursed (item A) is greater than the total aid earned (item D),
Title IV aid will need to be returned. $2,812.50 (item A) – $1,448.44 (item D) = $1,364.06.
Title IV aid to be returned = $1,364.06.

Step 5: Amount of Unearned Title IV Aid Due from the School

G. Penny was not on campus in this scenario. Institutional charges for the payment period
or period of enrollment = $1,400.00

Tuition and fees $1,000.00

Books and Supplies $ 400.00

H. Subtract % Title IV aid earned (item C) from 100% (100% – 51.5% = 48.5%). Percentage of
Title IV aid unearned = 48.5%

I. First, calculate the amount of unearned institutional charges: $1,400.00 (institutional charges
from item G) X 48.5% (% Title IV aid unearned from item H) = $679.00 (no rounding
needed). Amount of unearned institutional charges = $679.00.

J. Then, compare the amount of Title IV aid to be returned (item F) to unearned institutional
charges (item I) and enter the lesser amount for item J.

Item F = $1,364.06
Item I = $ 679.00

Amount of unearned Title IV aid due from the school = $679.00

Step 6: Return of Funds by the School

No funds are returned to FSEOG and the LEAP grant, since the total Title IV aid returned does not
exceed the amount of Pell funds received. Return of funds by the School:

Pell Grant $679.00

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Step 7: Initial Amount of Unearned Title IV Aid Due from Student

K. Subtract the amount of Title IV aid that the school must return from the total amount
of Title IV aid that is to be returned. $1,364.06 (item F) – $679.00 (item J) = $685.06.
Initial amount = $685.06

Step 8: Return of Funds by the Student

Initial amount to return multiplied by 50%. $685.06 X 50% = $342.53 (no rounding needed). Return of
funds by the student:

Pell Grant $342.53

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CASE STUDY 3: HARRY SPRINGER

Calculating the return of Title IV funds for a student who received loans and LEAP funds and is
attending a proprietary (clock hour) school.

Learning Objectives
• Calculate ratio of completed clock hours to scheduled clock hours.

• Calculate percentages of Title IV aid earned and unearned based on clock hours.

• Determine withdrawal date for student who did not provide notification of intent to withdraw.

School Profile

Quality Tech School (QTS) is a proprietary, clock-hour institution

Academic Year/Program 900 clock hours

30 weeks

Period 450 clock hours

15 weeks

Period Start Date September 7

Period End Date December 22

5 Consecutive Day Break No

Taking Attendance Required Yes

Method for Matching FSEOG Fund-specific

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STUDENT PROFILE

Harry Springer enrolled at QTS for a fall term consisting of 450 clock
hours over 15 weeks. Charges to his account are as follows:
Tuition and Fees $ 1,750.00/15 week period
Room and Board (nonresidential school)
Books and Supplies $ 250.00/15 week period
Student Account Balance $ 250.00

Balances remaining on Harry’s account include:

Books and Supplies $ 250.00

School authorized to credit

account for other charges: Yes (all charges)

Harry Springer was eligible for the following annual awards:

Net Subsidized Stafford Loan $ 2,000.00
Perkins Loan $ 1,500.00
Institutional Awards $ 1,000.00

Discussion
Harry’s student account was credited with both Stafford and Perkins loan disbursements for the fall
period. However, the disbursement of the institutional grant was placed on hold until Harry turned in the
required form. Also, Harry did not live on campus but was charged $250.00 for books, which had to be
purchased at QTS’ campus store.

Everything seemed to be going very well for Harry—until fall break. Due to personal problems, Harry
didn’t return to QTS, and he didn’t bother to let anyone know that he was dropping out. It wasn’t until you
called him on November 5—to give him a last chance to turn in the institutional form still needed—that you
discovered he hadn’t returned after fall break (November 2-4). Upon checking with the director of the
program, you verified that Harry had completed 210 of the 250 clock hours scheduled for completion on
the last day he attended prior to fall break (November 1).

Using the information provided, complete the worksheet.

Note: QTS is required to take attendance and uses the fund-specific method to match FSEOG funds. Harry
withdrew without providing official notification.

Decide on the date of the school’s determination that Harry withdrew, and then complete Step 1:
Student’s Title IV Aid Information.

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Solution
November 5 is the date you called Harry about the needed form and he told you he wasn’t coming back.
Date of the institution’s determination that the student withdrew = November 5.

Step 1: Student’s Title IV Aid Information

A. Title IV aid disbursed = $ 1,750.00

Subsidized Loan $ 1,000.00

Perkins Loan $ 750.00

B. Total Title IV aid disbursed plus Title IV aid that could have been disbursed = $1,750.00

Note: All Title IV aid was disbursed.

Step 2: Percentage of Title IV Aid Earned

To be able to complete Step 2, we’ll need to note the:

• total number of clock hours in the period = 450

• number of clock hours Harry completed = 210

• number of clock hours Harry was scheduled to complete = 250.

1. November 1 is Harry’s last date of attendance taken from attendance records. Withdrawal date =
November 1.

2. Percentage of payment period completed:

• Calculation 1: Determine percentage of clock hours completed in the period. Divide the number
of clock hours completed by the number of clock hours in the period. 210 ÷ 450 = .4666,
rounded to .467, or 46.7%. Since this percentage is less than (or equal to) 60%, proceed to
Calculation 2. Clock hours completed = 46.7%.

• Calculation 2: Determine the ratio of clock hours completed to clock hours scheduled to be
completed. Divide the number of clock hours completed by the number of clock hours
scheduled to be completed. 210 ÷ 250 = .8400, rounded to .840, or 84.0%. Since this percentage
is greater than 70%, calculate the percentage completed using scheduled clock hours (rather
than completed clock hours). The ratio = 84.0%.

• Determine percentage of payment period completed. 250 hours ÷ 450 hours = .5555, rounded
to .556, or 55.6%.

C. Percentage of Title IV aid earned = 55.6%. Percentage of payment period completed (55.6%),
up to and including 60%; otherwise, if greater than 60%, then 100%. (Note that the 60%
threshold can’t be reached using scheduled hours completed.) Percentage of payment period
completed = 55.6%.

Step 3: Amount of Title IV Aid Earned by Student

D. 55.6% (% of Title IV aid earned from item C) X $1,750.00 (total Title IV aid disbursed and
that could have been disbursed from item B) = $973.00 (no rounding needed). Amount of
Title IV aid earned by student = $973.00.

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Step 4: Total Title IV Aid to be Disbursed or Returned

E. Because the total Title IV aid earned (item D) is less than the aid disbursed (item A), no
post-withdrawal disbursement is due and we proceed to item F. Post-withdrawal disburse-
ment = N/A.

F. Because the total Title IV aid disbursed (item A) is greater than the aid earned (item D),
Title IV aid will need to be returned. $1,750.00 (item A) – $973.00 (item D) = $777.00.
Title IV aid to be returned = $777.00.

Step 5: Amount of Unearned Title IV Aid Due from the School

G. Institutional charges for the payment period or period of enrollment = $2,000.00

Tuition and Fees $ 1,750.00

Books and Supplies $ 250.00

Note: The charge for books and supplies is considered an institutional charge, since they must be
purchased from QTS’ bookstore.

H. Subtract % Title IV aid earned (item C) from 100% (100% – 55.6% = 44.4%). Percentage of
Title IV aid unearned = 44.4%.

I. First, calculate the amount of unearned institutional charges. $2,000.00 (institutional charges
from item G) X 44.4% (% Title IV aid unearned from item H) = $888.00 (no rounding
needed). Amount of unearned institutional charges = $888.00.

J. Then, compare the amount of Title IV aid to be returned (item F) to unearned institutional
charges (item I) and enter the lesser amount for Item J.

Item F = $ 777.00
Item I = $ 888.00

Amount of unearned Title IV aid due from the school = $777.00.

Step 6: Return of Funds by the School

No Perkins funds are returned, since the total Title IV aid returned does not exceed the amount of the
subsidized loan ($777.00) received.

Step 7: Initial Amount of Unearned Title IV Aid Due from Student

K. Subtract the amount of Title IV aid that the school must return from the total amount of Title
IV aid that is to be returned. $777.00 (item F) – $777.00 (item J) = $0.00.

Step 8: Return of Funds by the Student

N/A

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Questions and Answers

Q: Under what scenario would institutional or state awards be used in calculating the return of Title IV
funds?

A: Institutional awards are never included in the calculation. However, when a state grant is identified as
a LEAP grant, it must be included.

Q: Since Harry did not provide notification that he was withdrawing from his clock-hour program, how
is the withdrawal date determined? And, since the number of clock hours completed is going to be used
in the calculation, why do we need Harry’s withdrawal date?

A: Harry’s withdrawal date is taken from attendance records, since his school requires that attendance
be taken. We need to know Harry’s withdrawal date so that we can determine how many clock hours
were scheduled to be completed as well as how many clock hours were completed as of the date he
withdrew, as both items of information are needed to perform the calculation.

Q: What constitutes official notification?

A: Official notification is the notice that the student provides to the school that he or she is withdrawing.
This can be done by following the school’s prescribed policy or by providing the office(s) designated by
the school with notice in writing or orally (in person, over the telephone by an individual acting on
behalf of the student, or via alternative means specified by the school, such as a Web site).

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CASE STUDY 4: BILL DONAHUE

Calculating the return of Title IV funds for a student receiving grants and attending a four-year
public university (trimesters).

Learning Objectives
• Determine the withdrawal date for a student attending a school that is required to take attendance.

• Review the criteria that determine if a school is required to take attendance.

• Determine the effect of FWS earnings on the return of Title IV funds calculation.

School Profile

Big State University (BSU) is a 4-year, public, residential credit-hour

institution.

Academic Year/Program 3 trimesters

30 weeks

Period 10 weeks
(68 calendar days)

Period Start Date January 10

Period End Date March 17

5 Consecutive-Day Break No

Taking Attendance Required Yes

Method for Matching FSEOG Fund-specific

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STUDENT PROFILE

Bill Donahue is a first-year student at BSU majoring in chemistry. Bill is living

on campus and spends his free time at his FWS job in the Chemistry
Department. Charges to his account are as follows:

Tuition and Fees $ 900.00/10 week trimester

Room $ 600.00/10 week trimester
Board $ 400.00/10 week trimester
Health Insurance $ 300.00/per academic year
(required of all students and remains in effect for the entire
period, even if students cease attendance)

Balances remaining on Bill’s account include:

Health Insurance $ 258.34

School Authorized to Credit

Account for Other Charges: Yes (all charges)

His financial aid for the academic year is:

Pell Grant $ 3,125.00

FSEOG $ 2,100.00
FWS $ 1,800.00

Discussion
Bill is not required to purchase his books and supplies from BSU. On February 10 (32 calendar days),
you were advised by the Chair of the Chemistry Department that Bill was suspended for the rest of the
academic year (it appears that he was spending his FWS hours on his own “special projects” in the Chemistry
lab). Upon checking with his professors, you determined that his last date of class attendance was February 8
(30 calendar days). Prior to this incident, Bill’s student account had been credited for the term with:

Pell Grant $ 1,041.67

FSEOG $ 700.00
FWS $ 200.00

Using the information provided, complete the worksheet.

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Solution
Date of the institution’s determination that the student withdrew = February 10.

Step 1: Student’s Title IV Aid Information

A. Remember that, although disbursed, the FWS earnings ($200.00) are never included in the
calculation. In addition, we use 100% of the FSEOG funds awarded for the semester, since
BSU uses the fund specific method of matching FSEOG funds. Title IV aid disbursed equals
$1,741.67.

Pell Grant $ 1,041.67

FSEOG $ 700.00

B. Total Title IV aid disbursed plus Title IV aid that could have been disbursed = $1,741.67.

Step 2: Percentage of Title IV Aid Earned

1. BSU requires that attendance be taken. Therefore, Bill’s date of withdrawal is taken from
attendance records, which indicated that February 8 was his last date of attendance. Withdrawal
date = February 8.

2. Payment period start date = January 10

3. Payment period end date = March 17

4. Date of institution’s determination that Bill withdrew = February 10.

5. Percentage of payment period completed

• Number of calendar days completed in payment period = 30 calendar days

• Number of calendar days in payment period = 68 calendar days

• 30 days ÷ 68 days = .4411, rounded to .441, or 44.1%. Percentage of payment period

completed = 44.1%

C. Item C up to and including 60%; otherwise, if greater than 60%, then 100%. Percentage of
Title IV aid earned = 44.1%

Step 3: Amount of Title IV Aid Earned by Student

D. 44.1% (% of Title IV aid earned from item C) X $1,741.67 (total Title IV aid disbursed plus
Title IV aid that could have been disbursed from item B) = $768.076, rounded to $768.08.
Amount of Title IV aid earned by student = $768.08.

Step 4: Total Title IV Aid to B

e Disbursed or Returned
E. Because the total Title IV aid earned (item D) is less than the aid disbursed (item A),
no post-withdrawal disbursement is due and we proceed to item F. Post-withdrawal
disbursement = N/A.

F. Because the total Title IV aid disbursed (item A) is greater than the aid earned (item D), Title
IV aid will need to be returned. $1,741.67 (item A) – $768.08 (item D) = $973.59. Total Title
IV aid to be returned = $973.59.
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Step 5: Amount of Unearned Title IV Aid Due from the School
G. Because health insurance is required of all students and remains in effect for the entire
period, even if the student withdraws, it is not considered an institutional charge. Institutional
charges for the payment period = $1,900.00.

Tuition and Fees $ 900.00

Room $ 600.00
Board $ 400.00

H. Subtract % Title IV aid earned (item C) from 100% (100% – 44.1% = 55.9%). Percentage of
Title IV aid unearned = 55.9%.

I. First, calculate the amount of unearned institutional charges. $1,900.00 (institutional charges
from item G) X 55.9% (%Title IV aid unearned from item H) = $1,062.10 (no rounding
needed). Amount of unearned institutional charges = $1,062.10.

J. Then, compare the amount of Title IV aid to be returned (item F) to unearned institutional
charges (item I) and enter the lesser amount for item J.

Item F = $ 973.59
Item I = $ 1,062.10

Amount of unearned Title IV aid due from the school = $973.59.

Step 6: Return of Funds by the School

No FSEOG funds are returned, since the total Title IV aid returned does not exceed the amount of the
Pell Grant received. (FWS earnings are not included in the calculation.)

Pell Grant $ 973.59

Step 7: Initial Amount of Unearned Title IV Aid Due from Student

K. Subtract the amount of Title IV aid that the school must return from the total amount of Title
IV aid that is to be returned. $973.59 (item F) – $973.59 (item J) = $0.00. Initial amount of
unearned Title IV aid due from student = $0.00.

Step 8: Return of Funds by the Student

N/A

Questions and Answers

Q: The amount of Pell Grant the school is responsible for returning is $973.59. Can the school round
the amount? If so, to what?

A: Yes. The school could choose to round the amount. If so, the amount of Pell Grant returned would
be $974, since monetary amounts are rounded to the nearest dollar.

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Q: If BSU’s accrediting agency required that attendance be taken only during the first two weeks of the
term, would this change how the withdrawal date is determined?

A: Yes. The regulations do not pertain to schools that are required to take attendance for only a brief
portion of the period, but if an outside agency requires attendance to be taken for a group of students
(such as those receiving benefits from another government agency), this last date of attendance for this
group would be determined by attendance records (and the midpoint determination would not apply).

Q: Why wasn’t the $200 in FWS wages that had been credited to Bill’s student account included in the
calculation?

A: FWS wages are never included in calculating the return of Title IV funds.

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CASE STUDY 5: JOSEANNE CARR

Calculating the return of Title IV funds for a student attending a four-year private school
(semesters) and receiving loans (partially disbursed).

Learning Objectives
• Calculate the return of Title IV funds for a student who is responsible for returning loan funds.

• Determine how to handle Title IV funds that were not disbursed prior to the student’s withdrawal.

• Determine the distinction between the student’s withdrawal date and the date the school
determined the student withdrew.

SCHOOL PROFILE

Elite College of the South (ECS) is a two- and four-year private, credit-hour
institution.

Academic Year/Program 2 semesters

30 weeks

Period 15 weeks
105 calendar days

Period Start Date September 9

Period End Date December 22

5 Consecutive Day Break No

Taking Attendance Required Yes

Method for Matching FSEOG N/A

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STUDENT PROFILE

Joseanne Carr entered ECS one academic year ago. Charges to her
account are as follows:

Tuition and Fees $ 5,500.00/15 week semester

Student Account Balance: $ 0000.00

School Authorized to Credit

Account for Other Charges: Yes (all charges)

Joseanne’s financial aid package included the following annual awards:

Subsidized Stafford Loan $ 970.00
Unsubsidized Stafford Loan $ 727.50
PLUS Loan $ 5,335.00
ECS Award $ 1,000.00

Discussion
Upon entering ECS one academic year ago, Joseanne Carr was torn between a four-year program in
communications and a two-year program in interior design. After consulting her personal on-line psychic,
she chose the program in interior design and decided to live off campus. Amazingly, the psychic must have
gotten Joseanne’s reading confused with someone else’s, as Joseanne is really struggling in her third
semester and has decided that she needs some time away. Although she planned to stop by the Financial Aid
Office on October 4 to let those kind folks know that she was withdrawing, she was late for an appointment
with her manicurist and didn’t have the time. Luckily, by October 14, all of Joseanne’s professors had
contacted you to advise that she had stopped attending classes. You determined that her last date of
attendance was October 1 (23 calendar days into the semester). At that point, her charges for the semester
were $5,500.00, and all of her financial aid, except the unsubsidized loan that was projected to be in on
October 17, was disbursed.

Using the information provided, complete the worksheet.

Solution

Date of the institution’s determination that the student withdrew = October 14

Step 1: Student’s Title IV Aid Information

A. Title IV aid disbursed = $6,305.00

Subsidized Loan $ 970.00

PLUS $ 5,335.00

B. Aid that was disbursed plus aid that could have been disbursed includes the unsubsidized
Stafford loan of $727.50 that could have been disbursed. Total Title IV aid disbursed plus Title
IV aid that could have been disbursed = $7,032.50.
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Step 2: Percentage of Title IV Aid Earned
1. Withdrawal date = October 1

2. Payment period start date = September 9

3. Payment period end date = December 22

4. Percentage of payment period completed

• Number of calendar days completed in payment period = 23 calendar days

• Number of calendar days in payment period = 105 calendar days

• 23 days ÷ 105 days =.2190, rounded to .219, or 21.9%. Percentage of payment period
completed = 21.9%.

C. Item C up to and including 60%; otherwise, if greater than 60%, then 100%. Percentage
of Title IV aid earned = 21.9%.

Step 3: Amount of Title IV Aid Earned by Student

D. 21.9% (% of Title IV aid earned from item C) X $7,032.50 (total Title IV aid disbursed plus
Title IV aid that could have been disbursed from item B) = $1,540.117, rounded to $1,540.12.
Amount of Title IV aid earned by student = $1,540.12.

Step 4: Total Title IV Aid to Be Disbursed or Returned

E. Because the total Title IV aid earned (item D) is less than the aid disbursed (item A),
no post-withdrawal disbursement is due and we proceed to item F. Post-withdrawal
disbursement = N/A.

F. Because the total aid disbursed (item A) is greater than the total aid earned (item D), Title IV
aid will need to be returned. $6,305.00 (item A) – $1,540.12 (item D) = $4,764.88. Total Title
IV aid to be returned = $4,764.88.

Step 5: Amount of Unearned Title IV Aid Due from the School

G. Institutional charges for the payment period or period of enrollment = $5,500.00.

Tuition and Fees $ 5,500.00

H. Subtract % Title IV aid earned (item C) from 100% (100% – 21.9% = 78.1%). Percentage of
Title IV aid unearned = 78.1%.

I. First, calculate the amount of unearned institutional charges. $ 5,500.00 (institutional charges
from item G) X 78.1% (% Title IV aid unearned from item H) = $ 4,295.50 (no rounding
needed). Amount of unearned institutional charges = $ 4,295.50.

J. Then, compare the amount of Title IV aid to be returned (item F) to unearned institutional
charges (item I) and enter the lesser amount for item J.

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Item F = $ 4,764.88
Item I = $ 4,295.50

Amount of unearned Title IV aid due from the school = $ 4,295.50.

Step 6: Return of Funds by the School

Subsidized Loan $ 970.00
PLUS Loan $ 3,325.50

Note: The non-disbursed Unsubsidized Stafford loan of $727.50 will need to be cancelled.

Step 7: Initial Amount of Unearned Title IV Aid Due from Student

K. Subtract the amount of Title IV aid that the school must return from the total amount of Title
IV aid that is to be returned. $4,764.88 (item F) — $4,295.50 (item J) = $469.38. Initial
amount of unearned Title IV aid due from student = $469.38.

Step 8: Return of Funds by the Student

PLUS Loan $ 469.38

Note: Remember, in the case of Parent PLUS loans, the parent—not the student—is responsible for
returning the loan funds as per the terms of the promissory note signed.

Questions and Answers

Q: What would the withdrawal date have been if taking attendance were not required at ECS and you
had not discovered Joseanne’s withdrawal until the last week of the fall semester?

A: Because Joseanne did not begin the withdrawal process or otherwise notify the school of her intent to
withdraw, the withdrawal date would have been the midpoint of the payment period for which Program
Assistance was disbursed. In this case, her professors documented from attendance records that she
stopped attending on October 1, before the midpoint of the period. Therefore, attendance at an
academically-related event later than the midpoint of the period wouldn’t apply.

Q: How do Joseanne’s parents take care of returning the PLUS loan funds of $469.38? When all is said
and done, how much of the original net disbursement of $5,335.00 will they still owe?

A: They simply repay the funds in accordance with the terms of the promissory note. And, they still owe
$2,009.50 ($5,335.00 – $ 3325.50 = $2,009.50), plus loan origination fees.

Q: What is the distinction between “withdrawal date” and “date of the institution’s determination that
the student withdrew” in the return of Title IV funds?

A: Withdrawal date affects the number of days the student completed and, in turn, the percentage of aid
earned as well as the percentage of aid unearned. The date of the institution’s determination that the
student withdrew starts the clock with regard to the various time-sensitive requirements to which the
institution and student must adhere.

Remember that these dates are not necessarily one and the same.

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CASE STUDY 6: RONNIE DESMOND

Calculating the return of Title IV funds for a student attending a four-year, low-cost private
school (semesters) and receiving loans and grants (partially disbursed).

Learning Objectives
• Calculate the return of Title IV funds for a student who is responsible for returning loan and grant
funds.

• Determine the school’s requirements for dealing with a student who owes a grant overpayment.

• Review the effect of rescinding a notice of intent to withdraw on determining the student’s
withdrawal date.

SCHOOL PROFILE

Heartland of the Country College (HCC) is a four-year private, credit-hour

institution.

Academic Year/Program: 2 semesters

30 weeks

Period: 15 weeks
114 calendar days

Period Start Date: January 12

Period End Date: May 5

5 Consecutive Day Break: No

Taking Attendance Required: No

Method for Matching FSEOG: Fund-specific

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STUDENT PROFILE

Ronnie Desmond is a first-time freshman at HCC. Charges to his account

are as follows:

Tuition and Fees $ 1,000.00/15 week semester

Room and Board (nonresidential student)
Books and Supplies $ 250.00/15 week semester
Student Account Balance: $ 0000.00

School Authorized to Credit

Account for Other Charges: Yes (all charges)

Ronnie’s financial aid package includes the following annual awards:

Subsidized Stafford Loan $ 557.75 (Net)

Pell Grant $ 1,562.50
FSEOG $ 1,000.00

Discussion
Just recently, Ronnie Desmond and his sister, Mary, ended a short run as hosts of a local radio program.
Unsure of what to do with the rest of his life, Ronnie decided to enroll as a first-time freshman at HCC for
the spring semester. Along with his tuition and fees, he was charged $250.00 for books and supplies, which
must be purchased from the campus bookstore. Although he had to take out a small student loan for living
expenses, he had the full support of his wife. Ronnie did very well—until March 20, when he and Mary got a
call from the radio station promising a very lucrative long-term contract and begging them to come back.
That same day, Ronnie contacted the Financial Aid Office to advise that he was withdrawing from HCC (68
calendar days into the semester) and to find out what to do next. With the exception of the Stafford loan
that had just been certified, all of his financial aid for the semester had been disbursed.

Using the information provided, complete the worksheet.

Solution
Date of the institution’s determination that the student withdrew = March 20

Step 1: Student’s Title IV Aid Information

A. Because HCC uses the fund-specific method of matching FSEOG funds, 100% of Ronnie’s
FSEOG grant is used in the calculation. Title IV aid disbursed = $2,562.50.

Pell Grant $ 1,562.50

FSEOG $ 1,000.00

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B. Aid that was disbursed plus aid that could have been disbursed includes the subsidized
Stafford Loan of $557.75 that could have been disbursed. Total Title IV aid disbursed plus
Title IV aid that could have been disbursed = $3,120.25.

Step 2: Percentage of Title IV Aid Earned

1. Withdrawal date = March 20

2. Payment period start date = January 13

3. Payment period end date = May 5

4. Percentage of payment period completed

• Number of calendar days completed in payment period = 68 calendar days

• Number of calendar days in payment period = 114 calendar days

• 68 days ÷ 114 days = .5964, rounded to .596, or 59.6%. Percentage of payment period
completed = 59.6%.

C. Item C up to and including 60%; otherwise, if greater than 60%, then 100%. Percentage of
Title IV aid earned = 59.6%.

Step 3: Amount of Title IV Aid Earned by Student

D. 59.6% (% of Title IV aid earned from item C) X $3,120.25 (total Title IV aid disbursed plus
Title IV aid that could have been disbursed from item B) = $1,859.669 (rounded to
$1,859.67). Amount of Title IV aid earned by student = $1,859.67.

Step 4: Total Title IV Aid to be Disbursed or Returned

E. Because the total Title IV aid earned (item D) is less than the aid disbursed (item A),
no post-withdrawal disbursement is due and we proceed to item F. Post-withdrawal
disbursement = N/A.

F. Because the total aid disbursed (item A) is greater than the total aid earned (item D), Title IV
aid will need to be returned. $2,562.50 (item A) – $1,859.67 (item D) = $702.83. Title IV aid
to be returned = $702.83.

Step 5: Amount of Unearned Title IV Aid Due from the School

G. Institutional charges for the payment period or period of enrollment = $1,250.00

Tuition and Fees $ 1,000.00

Books and Supplies $ 250.00

H. Subtract % Title IV aid earned (item C) from 100% (100% – 59.6% = 40.4%). Percentage of
Title IV aid unearned = 40.4%.

I. First, calculate the unearned institutional charges. $1,250.00 (institutional charges from item
G) X 40.4% (% Title IV aid unearned from item H) = $505.00 (no rounding needed).
Amount of unearned institutional charges = $505.00.

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J. Then, compare the amount of Title IV aid to be returned (item F) to unearned institutional
charges (item I) and enter the lesser amount for item J.

Item F = $ 702.83
Item I = $ 505.00

Amount of unearned Title IV aid due from the school = $505.00

Step 6: Return of Funds by the School

Pell Grant $ 505.00

Note: The non-disbursed subsidized loan of $557.75 would need to be cancelled.

Step 7: Initial Amount of Unearned Title IV Aid Due from Student

K. Subtract the amount of Title IV aid that the school must return from the total amount of Title
IV aid that is to be returned. $702.83 (item F) – $505.00 (item J) = $197.83. Initial amount of
unearned Title IV aid due from student = $197.83.

Step 8: Return of Funds by the Student

Initial amount to return multiplied by 50%. $197.83 X 50% = $98.915 (rounded to 98.92).

Pell Grant $ 98.92

Questions and Answers

Q: Had Ronnie’s loan been disbursed at the time of withdrawal, would he have had to repay (return)
the loan immediately?

A: No. Immediate repayment of the loan is not required because it is expected the loan will be repaid
according to the terms and conditions of the promissory note the student signed.

Q: What happens if Ronnie is unable to repay the portion of the Pell Grant that must be returned?

A: Ronnie remains eligible for Title IV aid for up to 45 days from the earlier of the date the school mails
him a notification of his obligation or the date the school is required to send him that notification.
Ronnie can continue his eligibility by returning the overpayment or by agreeing to a repayment arrange-
ment. Please see pages 2-140 through 2-146 for a complete discussion of a school’s notification respon-
sibilities and a student’s options.

Q: What would the withdrawal date have been if Ronnie had changed his mind and rescinded his notice
of withdrawal, and finally decided definitely to withdraw on March 27?

A: The withdrawal date used for the calculation of return of Title IV funds would have been the earlier
date, March 20. Remember that if the institution allows the student to rescind the official notification of
intent to withdraw, and the student subsequently ceases attendance, the rescission is negated and the
withdrawal date is the student’s original withdrawal date.

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CASE STUDY 7: JORDAN AIRE

Calculating the return to Title IV funds for a student attending a clock-hour school that per-
forms the return to Title IV funds calculations on an enrollment period basis.

Learning Objectives

Learn to complete Steps 1 – 4 of the worksheet Treatment of Title IV Funds When a Student Withdraws from a
Clock Hour Program, and be able to:

• determine when a school may make a second or subsequent disbursement of a FFEL or Direct Loan;

• calculate the percentage and amount of Title IV aid earned by a student attending a school that
performs the return to Title IV funds calculations on a period of enrollment basis;

• perform a return to Title IV funds calculation using scheduled hours rather actual hours;

• in the calculation, use net loan proceeds rather than the gross loan amount.

SCHOOL PROFILE

Learn to Earn Training School (LETS) is a proprietary clock-hour

institution.

Program 1,500 clock hours

50 weeks

Academic Year / Period of Enrollment 900 clock hours

30 weeks

Academic Year Start Date January 3

Academic Year End Date July 28

Five Consecutive Day Break No

Taking Attendance Required Yes

Method for Matching FSEOG Fund-Specific

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STUDENT PROFILE

Jordan Aire enrolled at LETS for an electronic technology program that runs
for 50 weeks and 1500 clock hours. The period of enrollment is the academic
year or 900 clock hours (30 weeks). Charges to his account are as follows:

Tuition and Fees $ 5,000.00 / 30 week

academic year

Room and Board (nonresidential

school)

Books and Supplies $ 500.00 / 30 weeks

School Authorized to Credit Yes (all charges)

Account for Other Charges

Jordan Aire was eligible for the following annual awards:

Pell Grant $ 1,400.00

Subsidized Stafford Loan $ 2,625.00

Discussion
Jordan’s student account was initially credited with $700.00 in Pell funds and a net Stafford Loan
Disbursement of $1,260. (Though the school is using period of enrollment as the basis for the return to
Title IV funds calculation, the Pell and Stafford Loan regulations require that the funds be disbursed in
payment periods as defined in 34 CFR 668.4.)

Jordan completes the first half of the academic year (first payment period), attends a portion of the
second payment period, and withdraws to go into the Navy. At the point Jordan withdrew, he had completed
500 of the 650 clock hours he was scheduled to complete as of the date he withdrew.

Solution

Step 1: Student’s Title IV Aid Information

A. When Jordan withdrew, he had received the first scheduled disbursements of the Pell Grant
and loan, but had not yet received any disbursement for the second half of the period of
enrollment. Title IV aid disbursed = $1,960.00.

Subsidized Loan $ 1,260.00

Pell Grant $ 700.00

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In order for any of the aid that had not yet been disbursed to be counted as Aid That Could Have Been
Disbursed, the student must meet the requirements for a late disbursement in 34 CFR 668.164(g). Since
the student's valid ISIR had already been received and the student had completed the payment period for
which Pell funds had been disbursed (at least one-half of the academic year), the Pell Grant funds that had
not yet been disbursed ($700.00) are included as Aid That Could Have Been Disbursed.

The student's loan application has been certified and the student has completed the first payment
period, so the second disbursement ($1,260.00) of the loan is included in Aid That Could Have Been
Disbursed.

Aid that could have been disbursed = $700.00 + $1,260.00 = $1,960

B. Total Title IV aid disbursed plus Title IV aid that could have been disbursed = $3,920.00.

Step 2: Percentage of Title IV Aid Earned

Information used to complete Step 2:

• Total clock hours in the period 900

• Number of clock hours Jordan completed 500

• Number of clock hours scheduled to be completed 650

1. Determine the percentage of clock hours completed in the period. Divide the number of clock
hours completed by the number of clock hours in the period of enrollment. 500 hours divided by
900 hours = .5555, rounded to .556, or 55.6%. Since this is less than 60%, proceed to calculation 2.

2. Determine the ratio of clock hours completed to clock hours scheduled to be completed. Divide
the number of clock hours completed by the clock hours scheduled to be completed. 500 hours
divided by 650 hours = .7692, rounded to .769, of 76.9%. Since this percentage is greater than 70%
calculate the percent of the period completed (which is also the percent of aid earned) using
scheduled hours (rather than completed hours).

C. Calculate the percent of the period completed. 650 scheduled hours divided by 900 hours in
the period of enrollment = .7222, rounded to .722, or 72.2%. (Note that the concept of a
student earning 100% of the Title IV aid if the percentage completed exceeds 60% does not
apply if scheduled hours are used.)

Step 3: Amount of Title IV Aid Earned by Student

D. The amount of Title IV aid earned is equal to the percentage of Title IV aid earned (C) times
the total Title IV aid disbursed plus Title IV aid that could have been disbursed for the period
of enrollment. Amount of Title IV aid earned by student = (72.2% X $3,920.00) = $2,830.24.

Step 4: Total Title IV Aid to be Disbursed or Returned

E. The student had been disbursed $1,960 of the $2,830.24, so he is owed a post-withdrawal
disbursement of $870.24.

A post-withdrawal disbursement must be made first from any available grant funds. The student had
$700.00 in Pell Grant funds that had not, but could have been disbursed, so the entire $700.00 in Pell funds
must be used to make a post-withdrawal disbursement.

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In addition, the student is still owed $170.24 in a post-withdrawal disbursement. However, the late
disbursement rules provide that the student may not receive a late second or subsequent disbursement of a
Title IV education loan unless the student has graduated or successfully completed the period of enrollment
for which the loan was intended. Therefore, although the second scheduled loan disbursement of $1,260
was included in the calculation of earned aid, the student cannot receive any of those funds. Therefore, the
actual amount of the student's post-withdrawal disbursement is the $700 in Pell Grant funds.

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Treatment of Title IV Funds When a Student Withdraws from A Clock Hour Program
Student’s Name Jordan Aire Social Security Number
Date Form Completed / / Date of the institution’s determination that the student withdrew / /
Period used for calculation (check one) payment period x period of enrollment
Monetary amounts should be in dollars and cents (rounded to the nearest penny). Round to three decimal places when
calculating percentages. For example, .4486 would be .449, or 44.9%.
STEP 1: Student’s Title IV Aid Information
Net Amount Amount That
Net Amount That Could Amount Could Have
Disbursed Have Been Disbursed Been Disbursed
1. Unsubsidized FFEL/Direct Stafford Loan Disbursed 5. Pell Grant $700 $700
2. Subsidized FFEL/Direct Stafford Loan $1,260 $1,260 6. FSEOG
3. Perkins Loan 7. Other Title IV programs*
*Do not include FWS.
4. FFEL/Direct PLUS
A. Total Title IV aid disbursed (NOT aid that could have been disbursed) for the payment period or period of
enrollment A $ 1,960.00
.
B. Total of Title IV aid disbursed plus the Title IV aid that could have been disbursed for the payment period
or period of enrollment B $ 3,920.00
.
STEP 2: Percentage of Title IV Aid Earned
C. • Withdrawal date / /
• Percentage of payment period or period of enrollment completed
Calculation 1 - Determine the clock hours completed* in the payment period or period of enrollment divided by the total
clock hours in the payment period or period of enrollment 500 _ 900 = . %
55.6
completed hours total hours
If this percentage is greater than 60%, enter 100% in Box C and proceed to Step 3.
If this percentage is less than or equal to 60%, proceed to Calculation 2.
Calculation 2 - Determine the clock hours completed* in the payment period or period of enrollment divided by the clock
hours scheduled to be completed as of the date the student withdrew. 500 _ 650 = . %
76.9
completed hours scheduled to complete

If this amount is less than 70%, enter the percentage from Calculation 1 in Box C and proceed to Step 3. If this amount is 70%
or greater, determine the clock hours scheduled to be completed as of the date the student withdrew divided by the total clock
hours in the payment period or period of enrollment and enter this amount in Box C (this amount may be greater than 60%).
*Excused absences do NOT count as completed hours. 650 _ 900 = . %
72.2
scheduled to complete total hours C 72.2. %
STEP 3: Amount of Title IV Aid Earned by the Student
D. Percentage of Title IV aid earned (Box C) x the total of Title IV aid disbursed plus the Title IV aid that could have been
disbursed for the payment period or period of enrollment (Box B) 72.2 % x $3,920.00 =
Box C Box B D $ 2,830.24 .
STEP 4: Total Title IV Aid to be Disbursed or Returned
If the amount in Box D is greater than the amount in Box A, go to item E. If the amount in Box A is greater than the amount
in Box D, go to item F. If the amounts in Boxes A and D are equal, STOP. No further action is necessary.

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Student’s Name Jordan Aire Social Security Number
STEP 4: Total Title IV Aid to be Disbursed or Returned: Continued
E. Post-withdrawal disbursement. Subtract Title IV aid disbursed for the payment period or period of enrollment (Box
A) from the amount of Title IV aid earned (Box D). This is the amount of the post-withdrawal disbursement due. Stop here and
go to the post-withdrawal disbursement tracking sheet. $2,830.24
_ $1960.00 =
Box D Box A E$ 870.24. 700.00
F. Title IV aid to be returned. Subtract the amount of Title IV aid earned (Box D) from Title IV aid disbursed for the
payment period or period of enrollment (Box A). This is the amount of Title IV aid that must be returned.
_ =
Box A Box D F$ .
STEP 5: Amount of Unearned Title IV Aid Due from the SCHOOL
G. Institutional charges for the payment period or period of enrollment
Tuition and Fees Board Other
Room Other Other

Total Institutional Charges G $ .

H. Percentage of Title IV aid unearned (100% - Box C)
H . %
I. Multiply institutional charges for the payment period or period of enrollment (Box G) times the
percentage of Title IV aid unearned (Box H). x % =
Box G Box H I$ .

J. Compare the amount of Title IV aid to be returned (Box F) to Box I and enter the lesser amount. J $ .
STEP 6: Return of Funds by the SCHOOL
The school must return the unearned aid for which the school is responsible (Box J) by repaying funds to the following sources,
in order, up to the total net amount disbursed from each source.
Amount for Amount for
School to School to
Return Return
1. Unsubsidized FFEL/Direct Stafford Loan 5. Pell Grant
2. Subsidized FFEL/Direct Stafford Loan 6. FSEOG
3. Perkins Loan 7. Other Title IV programs
4. FFEL/Direct PLUS
STEP 7: Initial Amount of Unearned Title IV Aid Due from the STUDENT
K. Subtract the amount of Title IV aid due from the school (Box J) from the amount of Title IV aid
to be returned (Box F). _ =
Box F Box J K$ .
STEP 8: Return of Funds by the STUDENT
The student (or parent for a PLUS loan) must return unearned aid for which the student is responsible (Box K) by repaying
funds to the following sources, in order, up to the total net amount disbursed from each source, after subtracting the amount
the school will return. Amounts to be returned to grants are reduced by 50%.
Amount for Amount for
Student to Initial Amount Student to
Return to Return Return
1. Unsubsidized FFEL/Direct Stafford Loan* 5. Pell Grant x 50%=
2. Subsidized FFEL/Direct Stafford Loan* 6. FSEOG x 50%=
3. Perkins Loan* 7. Other Title IV programs
4. FFEL/Direct PLUS* (x 50% for grant funds)
*Loan amounts are returned in accordance with the terms of the promissory note. No further action is required other than notification to
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Post-Withdrawal Disbursement Tracking Sheet

Student’s Name Jordan Aire Social Security Number

Amount of Post-Withdrawal Disbursement

A. Amount from Box E of “Treatment of Title IV Funds When a Student Withdraws” Worksheet A$ 700.00
.

Post-Withdrawal Disbursement Credited to Student’s Account

B. Total outstanding charges on student’s account B$ 0.
C. Total amount of post-withdrawal disbursement credited to student’s account
• Amount of post-withdrawal disbursement credited for tuition, fees,
room and board (if student contracts with the institution) $
• Amount of post-withdrawal disbursement credited for other
current charges + $
• Amount of post-withdrawal disbursement credited for minor prior
year charges + $

Total Amount Credited to Account C $ 0.

D. Student and/or parent authorization to credit account for other current charges or minor prior year
charges (if necessary) obtained on / /
E. If a post-withdrawal disbursement of loan funds is credited to account, date of notification to
student and/or parent / /
Post-Withdrawal Disbursement Offered to Student/Parent
F. Total amount of post-withdrawal disbursement (Box A) – amount of post-withdrawal disburse-
ment credited to student’s account (Box C) = Total amount to offer to student/parent F$ 700.00
.
G. Notification sent to student and/or parent on / /
H. Response received from student/parent on / /
Response not received
I. Amount accepted I$ 700.00
.
J. Accepted funds sent on / /

Post-Withdrawal Disbursement Made From

Pell Grant Subsidized FFEL/Direct Stafford Loan
FSEOG Unsubsidized FFEL/Direct Stafford Loan
Other Title IV programs (grants) Perkins Loan
FFEL/Direct PLUS
Other Title IV programs (loans)

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Student Withdrawal/Overpayment
Referral to ED/FSA Collections
Student Information Parent/Spouse Information
Name (Last, First, MI): Name (Last, First, MI):

Address: Address:

Telephone Numbers:

Social Security Number: Telephone Numbers:

Date of Birth: School Information

Name of Contact:
Student’s Pell Origination ID:
Telephone Numbers:

School’s Pell Identification Number (for 2002-03 all

schools must continue to enter this number):

Disbursements and Repayments

Federal Pell Federal SEOG

Award year of overpayment:

Grant funds applied to institutional charges:

Grant funds disbursed to student:

Total Grant Disbursement:

Dates of disbursement
(must match NSLDS overpayment record):

Date overpayment notice was required to be mailed:

Amount of grant for student to return

(50% of initial calculation):

Total grant amount repaid by student to school:

Date of last payment to school, if any:

Total being referred for collection:

*
If using individual or aggregate matching, report federal share only. Otherwise report total FSEOG. *

SEND INFORMATION TO ➾ Student Loan Processing Center-Overpayments

➾ P.O. Box 4157
2-226 Greenville, TX 75403
(903) 408-4634 FAX
 Chapter 6 — Return of Title IV Funds

Return of Title IV Funds Requirements and Deadlines

Party Responsible Requirement Deadline

School Determining withdrawal date 30 days after the end of the earlier of:
for student who withdraws without • Payment or enrollment period
providing notification • Academic year in which student
withdrew
• Educational program from which
student withdrew

School Return of unearned Title IV funds As soon as possible, but no later than
30 days after date school determined
student withdrew

School Post-withdrawal disbursement to Within 90 days of date school

student’s account for: determined student withdrew, in
• Outstanding current (allowable) accordance with requirements for
charges (e.g., tuition and fees, disbursing Title IV funds 34 CFR
room and board, etc.) 668.164
• Minor (under $100) prior year
charges that the school has
authorization to retain

School Written notification providing student Within 30 days of disbursement of

(or parent) opportunity to cancel all/part loan funds, in accordance with
of loan, for post-withdrawal requirements for notifications and
disbursements of loan funds (Perkins, authorizations 34 CFR 668.165
FFEL, Direct Loan, or PLUS) to
student’s account

School Written notification of student’s Within 30 days of date school

eligibility for post-withdrawal determined student withdrew
disbursement in excess of outstanding
current (educationally-related) charges

Student (or parent) Submit response instructing school to Within 14 days of date school sent
make post-withdrawal disbursement notification

School Post-withdrawal disbursement to Within 90 days of date school

student for earned Title IV funds determined student withdrew
in excess of outstanding current
(educationally-related) charges

School Notification to student (or parent) Not specified

of outcome of late request for a post-
withdrawal disbursement to student
(request received by school after the
14-day period and school chooses
not to make disbursement)

School Notification to student of grant Within 30 days of date school

overpayment determined student withdrew

School Referral of student to ED Collections, Not specified

if student does not pay overpayment
in full, does not enter into repayment
agreement, or fails to meet terms of
repayment agreement

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Return of Title IV Funds Requirements for Notification

Party Responsible Notification Requirements

School Report of student to NSLDS if student No later than 45 days from the date
does not pay overpayment in full, does not student is notified of overpayment
enter into repayment agreement, or fails
to meet terms of repayment agreement

School Consumer Information • School’s withdrawal policy

• School’s refund policy
• Office(s) designated to receive
official notifications of intent to
withdraw
• Requirements regarding return
of Title IV funds.

School Written notification of student’s • Identify type and amount of Title IV

eligibility for post-withdrawal funds that make up post-withdrawal
disbursement of funds in excess of disbursement not credited to student’s
outstanding current educationally account
related charges • Explain that student or parent may
accept all or part of disbursement
• Advise student or parent that no post-
withdrawal disbursement will be made
unless school receives response within
14 days of date school sent notice

School Response (written or electronic) to • Outcome of request

late request for post-withdrawal
disbursement (that school chooses
not to make)

School Repayment Agreement • Terms permitting student to repay

overpayment while maintaining
eligibility for Title IV funds
• Repayment in full within 2 years
of date school determined
student withdrew

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Withdrawal Dates for a School That Is Not Required to Take Attendance

Withdrawal Type Circumstance Student’s Date of the Institution’s

Withdrawal Date1 Determination that the
Student has Withdrawn2

Official Notification The student begins the

school’s withdrawal ➽ The date the student
begins the school’s
The date the student
provides official
process, or withdrawal process, or notification or begins the
withdrawal process,
The student otherwise
provides official ➽ The date that the student
otherwise provides the
whichever is later.

notification to the school notification.

of intent to withdraw.
(If both circumstances
occur, use the earlier
withdrawal date.)

Official Notification Not

Provided
Official notification not
provided by the student
➽ The date that the school
determines is related to the
The date that the school
becomes aware that the
because of circumstances circumstance beyond the student has ceased
beyond the student’s student’s control. attendance.
control.

All other instances

where student withdraws
➽ The midpoint of the
payment period or period
without providing official of enrollment, as
notification. applicable.

Leave of Absence The student does not The date that the student The earliest of the dates of
Related return from an approved began the leave of absence. the end of the leave of
leave of absence, or absence or the date the
student notifies the school
The student takes an he or she will not be
unapproved leave of returning to that school.
absence. (In the case of an
unapproved absence, the
date that the student began
the leave of absence.)

Withdrawal After The student withdraws The student’s original The date the school
Rescission of Official after rescinding a previous withdrawal date from the becomes aware that the
Notification official notification of previous official student did not, or will not,
withdrawal. notification. complete the program
period or period of
enrollment.

1.
In place of the dates listed, a school may always use as a student’s withdrawal date the student’s last date of attendance at an
academically-related activity, if the school documents that the activity is academically related and that the student attended the
activity.
2.
For a student who withdraws without providing notification to the school, the school must determine the withdrawal date no later
than 30 days after the end of the earlier of the (1) payment period or period of enrollment (as appropriate), (2) academic year, or
(3) educational program.

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