Return of Title IV Funds

Federal regulations require Title IV financial aid funds to be awarded under the assumption that a student will attend the institution for the entire period in which federal assistance was awarded. When a student withdraws from all courses for any reason, including medical withdrawals, they may no longer be eligible for the full amount of Title IV funds they were originally scheduled to receive. A pro-rated schedule is used to determine the amount of federal student aid funds earned at the time of the withdrawal. Once 60% of the semester is completed, a student is considered to have earned all of their financial aid and will not be required to return any funds.

Federal law requires schools to calculate how much federal financial aid a student has earned if that student:

  • Completely withdraws or takes a leave of absence mid semester, or
  • Stops attending before completing the semester, or
  • Does not complete all modules (courses that are not scheduled for the entire semester or payment period for which he/she has registered at the time those modules began).

Based on this calculation, Albion students who receive federal financial aid and do not complete their classes during a semester could be responsible for repaying a portion of the aid they received. Students who do not begin attendance must repay all financial aid disbursed for the term.

We highly recommend that if you are thinking about leaving mid semester that you contact the Financial Aid Office to understand what, if any, impact there will be on your financial aid.

Steps in the Return of Title IV Funds

  1. The total amount of Title IV aid disbursed for the semester in which the student withdrew. A student’s Title IV aid is counted as aid disbursed in the calculation if it has been applied to the student’s account on or before the date the student withdrew.
  2. The total amount of Title IV aid disbursed plus the Title IV aid that could have been disbursed for the semester in which the student withdrew.
  3. The percentage of Title IV aid earned is as follows: The number of calendar days completed divided by the total number of calendar days in the semester in which the student withdrew. The total number of calendar days in a semester shall exclude any scheduled breaks of more than five days.
    Days attended ÷ Days in enrollment period = Percentage completed
  4. If the calculated percentage completed exceeds 60%, then the student has “earned” all the Title IV aid for the enrollment period and no further action is required.
  5. Albion College will calculate the amount of Title IV aid earned as follows: The percentage of Title IV aid earned (Step 2) multiplied by the total amount of Title IV aid disbursed or that could have been disbursed for the term in which the student withdrew.

    Total aid disbursed × Percentage completed = Earned aid

  6. Amount of Title IV aid to be disbursed or returned:

    1. If the aid already disbursed equals the earned aid, no further action is required.
    2. If the aid already disbursed is greater than the earned aid, the difference must be returned to the appropriate Title IV aid program.

      Total disbursed aid – earned aid = Unearned aid to be returned

    3. If the aid already disbursed is less than the earned aid, then Albion College will calculate a post-withdrawal disbursement. If your post-withdrawal disbursement includes loan funds, your school must get your permission before it can disburse them. You may choose to decline some or all of the loan funds so you do not incur additional debt. Your school may automatically use all or a portion of your post-withdrawal disbursement of grant funds for tuition, fees, and housing and food charges (as contracted with the school).
  7. Regulations require schools to perform calculations within 30 days from the date the school determines a student has withdrawn. Albion College must return funds within 45 days of the calculation.

Order of Repayment

Return of aid is allocated in the following order:

  • Unsubsidized Direct Stafford Loan
  • Subsidized Direct Stafford Loan
  • Direct PLUS (Parent) Loans
  • Pell Grant
  • Supplemental Educational Opportunity Grant (SEOG)
  • TEACH Grant

Withdrawal Process

Any student wishing to withdraw from Albion College has the responsibility of initiating the withdrawal process.

The official withdrawal procedure is completed through the Cutler Center for Student Success ([email protected]).