The Higher Education Amendment of 1998 required schools to implement a Return to Title IV Policy when Title IV recipients withdraw from school. A Title IV recipient is defined as a student who has received Title IV funds (excluding Federal Work Study funds but including Federal Perkins Loan, Federal TEACH Grant, Federal Direct Unsubsidized Loan and Federal Direct Grad PLUS Loan funds) or has met the conditions that entitle the student to a late disbursement.
The Amendment makes clear that Title IV funds are awarded to students with the assumption that they will attend school for the entire enrollment/payment period. If a student receiving federal assistance completely withdraws from school or ceases to attend classes up through the 60% point of the semester (as calculated by calendar days), the Financial Aid Office is required to calculate the amount of funds the student earned prior to their withdrawal and the amount unearned must be returned to the appropriate Title IV programs. After the 60% point of the semester, the student is deemed to have earned 100% of the Title IV funds.
In the event a student who received Federal Title IV funds completely withdraws, is expelled or dismissed, drops out, or otherwise fails to complete a period of enrollment in which charges have been incurred, CGU will first determine how much federal financial aid a student has earned if that student:
did not attend any classes and overpayment provisions apply (100% of Federal funds will be returned to the Federal program); or
stops attending before completing the entire semester, including modules (CGU must calculate the amount of Federal funds that was “unearned” at the time of withdrawal)
Federal guidelines stipulate the responsibility for repaying unearned Federal funds may be shared by the institution and the student, in proportion to the Federal funds received by each. The University share is the lesser of the amount of unearned aid (Institutional charges multiplied by the percentage of aid that was unearned); the student’s share is the difference between the total unearned amount and the institution’s share.
Unearned Title IV aid will result in a reduction to each Federal program in the following order:
Federal Direct Unsubsidized Loan
Federal Perkins Loan
Federal Direct Grad PLUS Loan
Federal TEACH Grant
Note: The student is responsible to repay federal student loans that are received and retained according to the terms of the Master Promissory Note (MPN).
Students are encouraged to contact the Financial Aid Office prior to withdrawal to discuss the impact of their decision.