Financial Aid Return of Funds Policy

Federal Title IV Funds1

The Higher Education Amendments of 1998, Public Law 105-244 mandate the way funds paid toward a student's education are to be calculated when a recipient of the Title IV funds withdraws from the semester.  A statutory federal formula is applied through the 60% point of each semester to determine the amount of Title IV funds a student has earned at the "date of withdrawal" 2.  (After the 60% point in the semester, a student has earned 100% of the Title IV funds.)

The amount of unearned Title IV aid disbursed3 to the student must be returned.  The institution and the student share the responsibility in returning funds.  (The division of returning funds will depend on what funds were received and how they were disbursed.)  Title IV funds returned by the College must be in the following order: Unsubsidized loan, Subsidized loan, PLUS loan, Pell.

Eligible earned aid not disbursed prior to withdrawing will be applied first to any outstanding student account balance for allowable charges.

Statutory Federal Formula

Earned Percentage of Title IV Aid
Determine the calendar days completed in the semester of enrollment divided by the total calendar days in the semester of enrollment (exclude schedule breaks of 5 days or more AND days that the student was on an official approved leave of absence4)

Unearned Percentage of Title IV Aid
100% Aid Disbursed - % Earned Aid = % Unearned Aid (Title IV Return)

Example:
  • Days completed = 19
  • Days in semester = 115 
  • 100% Aid Disbursed = $5,000

% Earned Aid:  Days Completed / Total Days in Semester

19 / 115 = .1652 or 16.5%

Earned Aid in dollars: 100% Aid Distributed X % earned aid

$5,000 X 16.5% = $825.00

Unearned Aid (Title IV Return):  100% distributed aid - earned aid

$5000 - $825.00 = $4175.00

1  Federal Title IV Funds (at Saint Francis Medical Center College of Nursing) - Pell Grant, Stafford Student Loans (Subsidized and Unsubsidized) and Federal PLUS loan.

2  Date of withdrawal - a student who wishes to withdraw from a semester must request the appropriate form from the Registrar or Dean and obtain the necessary signatures.  Non-attendance or verbal notification to an employee other than the Registrar or Dean does not constitute a withdrawal.  The date of withdrawal is the date the form is filed.

3  Disbursed Aid that has been applied to the student's account for tuition, fees and other allowable charges and/or aid that was disbursed directly to the student or parent (PLUS loan).

4  Leave of Absence - The student must follow the leave of absence policy as written in the College publications (Catalog, Student Handbook, Saint Francis Medical Center College of Nursing Website).