All students receiving federal Title IV financial assistance who withdraw will be subject to a calculation that determines 'earned' and 'unearned' Title IV funds.
Calculation of Title IV assistance earned
Up through the 60 percent point in time, the percentage of assistance earned is equal to the percentage of the payment period or period of enrollment for which it was awarded that was completed as of the day the student withdrew. If the student withdrawal occurs after the 60 percent point, then the percentage is 100 percent. That earned percentage is applied to the total amount of Title IV grant and loan assistance that was disbursed (and that could have been disbursed) to the student for the payment period or enrollment for which it was awarded as of the day the student withdrew.
Calculation of Title IV assistance not earned
The amount of Title IV grant and loan assistance not earned by the student is calculated by determining the complement of the percentage of assistance the student earned and applying it to the total amount of grant and loan assistance that was disbursed (and that could have been disbursed) to the student for the payment period or period of enrollment as of the day the student withdrew.
The amount the school must return to the federal aid programs is the lesser of the unearned amount of Title IV assistance or the institutional charges incurred, multiplied by the unearned percentage. Title IV funds will be returned to the various federal aid programs in the following order:
1. Federal Direct Unsubsidized Loan
2. Federal Direct Subsidized Loan
3. Federal Perkins Loan
4. Federal Direct PLUS Loan
5. Federal Pell Grant
6. Federal SEOG