Policies and Procedures -

Return of Title IV Funds Policy

A student may find it necessary to withdraw from all classes during a semester. The student may be eligible to receive a refund of tuition and course fees depending upon the timing of withdrawal.

If circumstances cause a student to withdraw from all classes, they are encouraged to contact their academic advisor so their decision will be based on a clear understanding of the consequences of withdrawing from all classes.

Determining Aid Earned

If a student withdraws from UW-River Falls, then the school, or the student, or both may be required to return some or all of the federal funds awarded to the student for that semester. The federal government requires a return of Title IV federal aid that was received if the student withdrew on or before completing 60% of the semester. Federal funds, for the purposes of this federal regulation, include Pell Grant, Academic Competitiveness Grant, National SMART Grant, Supplemental Educational Opportunity Grant, Unsubsidized Stafford Loans, Subsidized Stafford Loans, Perkins Loans, and Parent PLUS Loans. The formula used in this federal "return of funds" calculation divides the aid received into earned aid and unearned aid.

A student "earns" financial aid in proportion to the time s/he is enrolled up to the 60% point. The percentage of federal aid to be returned (unearned aid) is equal to the number of calendar days remaining in the semester when the withdrawal takes place divided by the total number of calendar days in the semester. If a student was enrolled for 20% of the semester before completely withdrawing, 80% of federal financial aid must be returned to the aid programs. If a student stays through 50% of the semester, 50% of federal financial aid must be returned.

For a student who withdraws after the 60% point-in-time, there is no unearned aid. However, a school must still complete a Return calculation in order to determine whether the student is eligible for a post-withdrawal disbursement.

Return of Title IV Federal Financial Aid

Once the amount of unearned federal aid is calculated, the UW-River Falls repayment responsibility is the lesser of that amount or the amount of unearned institutional charges. The school satisfies its responsibility by repaying funds in the student's package in the following order:

Unsubsidized Stafford Loan
Subsidized Stafford Loan
Perkins Loan
Parent PLUS Loan
Pell Grant
Academic Competitiveness Grant
National SMART Grant
FSEOG
Other Title IV Grant Funds

Keep in mind that when Title IV funds are returned, the student borrower may owe a balance to the institution and/or the U.S. Department of Education. If a student fails to repay grant funds, s/he may be ineligible for future federal financial aid.

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Policies and Procedures -

Return of Title IV Funds Policy