Financial Aid » FA Polices and Procedures » Return of Title IV Funds
Return of Title IV FundsFederal law and regulations require that the Institute determine a refund of tuition and fees for any student who takes a Leave of Absence or withdraws from the Institute’s programs. The Return of Title IV funds calculation is separate from the Institute’s tuition refund policy.
The Institute must complete a Return of Title IV funds calculation for any student receiving financial aid; the calculation determines the amount of used vs. unused funds received by the student for the period of time he or she attended classes. Unused funds will be returned to the Department of Education.
When a return of funds to the Department becomes necessary, the business office determines the student’s debt or refund according to the Institute’s refund policy and transmits the result of that calculation to the financial aid office. (The purpose of this calculation is to assess more accurately the true institutional charges owed to the school by the student.)
If the student is required to return funds not earned during an enrollment period, the Institute will notify that student of the necessity of returning Title IV funds. That student is required to repay loans obtained through the lender based on the terms and conditions detailed in the student’s Master Promissory Note. A student’s failure to return funds the student is not eligible to receive will result in the student being ineligible for further financial aid.
If a student selected for verification withdraws from the Institute and has provided all of the information required for verification, the Institute will complete the Return of Title IV Funds calculation within the 30-day timeframe required by the Department. However, if the student has not provided all required information in time for the Institute to make the full calculation within the 30 days, the Institute will still make the calculation for the student’s unsubsidized loans (loans not subject to verification). The student will still have an opportunity to turn in the missing verification information at which time the Institute will redo the Return of Title IV Funds calculation. In either case, the Institute will return any unearned funds or offer any post-withdrawal to the eligible student within 30 days of the date the Institute determined that the student withdrew.