Federal Financial Aid (Title IV) Refunds Policy and Return Dates
The Higher Education Act of 1965, as amended Oct. 1, 1998, allows institutions participating in any Title IV program (e.g., Pell Grant, Direct Loan Program, etc.) to implement the policy and make a “good faith effort” to enforce it prior to the writing of the final regulations, which became effective on October 7, 2000.
The law focuses on the return of Title IV Funds received for the semester the student was enrolled in if that student completely withdraws or partially withdraws (terms with modules) from the College prior to the 60 percent point of the semester.
If a student withdraws after the 60 percent point of the semester, the student will be considered to have earned all funds disbursed, and no return of funds will be required unless a student has received a loan that was subject to repayment under the terms of the loan.
If you receive financial aid, you should notify the Financial Aid office before withdrawing.
Recalculation for the percent of aid earned is based on the following formula:
Percent earned = number of days you completed prior to your withdrawal date divided by the total days in a semester/term
If the calculation results in overpayment, you will owe a balance to the college, and payment must be arranged with the Business Office. Students are notified via the non-school-related email on file when a Return to Title IV calculation occurs. Federal regulations require the notification to be sent to a non-school-related email address, so it is important to make sure that all external email addresses are up to date with the college.
Withdrawals and Calculating Return of Title IV Funds
The Financial Aid Office will determine the amount of earned and unearned portions of Title IV aid as of the date you cease attending in accordance with federal regulations and the Return of Title IV Funds process. This policy applies to all students receiving Title IV funds who do a complete withdrawal on or before the 60% date of each term. If you completely withdraw after the 60% date, A-B Tech will still need to determine if you are eligible for a post-withdrawal disbursement according to federal regulations.
Withdrawing or stopping attendance may result in your accruing financial debt and may also make you ineligible for future financial aid, including loans. It is recommended that a student contact the Financial Aid Office before withdrawing if they are a Title IV recipient.
Financial Consequences of Withdrawing or Not Passing Classes
Federal regulations assume that you earn financial aid over the course of a term by attending and participating in classes. You cannot earn all the funds unless you maintain attendance and class participation for more than 60% of the term. This calculation counts all calendar days, including the first and last day of each term, weekends, and holidays. Only breaks of five consecutive days or more are excluded from the calculation (for example, Thanksgiving break or spring break). If you completely withdraw from all classes, or it is determined that you received all F, W, and Incomplete grades and stopped attending before the 60% point in the term, you may have to repay any unearned financial aid funds that were already disbursed. Even if you are going to officially withdraw, it is important that you attend and participate in your courses up until the date you withdraw.
Fall 2025 Dates
Full 16-Week Semester:
- 35% point: October 4
- 60% point: November 2
15-Week Semester:
- 35% point: October 9
- 60% point: November 5
14-Week Semester:
- 35% point: October 14
- 60% point: November 8
First 8-Week Semester:
- 35% point: September 14
- 60% point: September 29
Second 8-Week Semester:
- 35% point: November 11
- 60% point: November 25
Order Unearned Aid is Applied and Returned
Unearned financial aid will be applied and returned in the following order:
- Federal Direct Unsubsidized Stafford Loan (1)
- Federal Direct Subsidized Stafford Loan (1)
- Federal Pell Grant (2)
- Federal Supplemental Educational Opportunity Grant (2)
- Iraq Afghanistan Service Grant (2)
- Other (excluding federal Work Study)
(1) Student repayment according to the terms and conditions of the promissory note
(2) No more than 50% of the amount received by the student
Example of Return of Title IV Funds Calculation (for Illustration Purposes Only)
Mark received $2,800.70 total in financial aid:
- Federal Pell Grant: $1,333.00
- Federal SEOG: $100.00
- Subsidized Federal Direct Loan (net): $636.32
- Unsubsidized Federal Direct Loan (net): $731.38
After paying tuition, fees, and books ($637.00), Mark received a refund check in the amount of $2,163.70 ($2,800.70 minus $637.00).
Mark's Unearned Aid
Mark totally withdraws on the 24th day of a 77-day term, or at the 31.2% point (24 divided by 77 = 31.2). Federal law states that Mark received or would have been eligible to receive $1,926.88 (Mark's unearned aid):
- percent of aid earned = 31.2% (percentage point of the semester when Mark withdrew) of $2,800.70 (Mark’s total aid award) = $873.82
- unearned aid = 100% of aid disbursed minus the percent of aid earned
- $2,800.70 minus $873.82 = $1,926.88 (68.8%)
A-B Tech’s Institutional Share
A-B Tech and Mark share the responsibility of returning unearned aid to federal programs. According to federal policy, A-B Tech’s institutional share for Mark is $438.26:
- total charges multiplied by the unearned aid percentage = A-B Tech’s institutional share
- $637 times 68.8% = $438.26
A-B Tech will return $438.26 to Mark’s lender (the Department of Education) to reduce the unsubsidized federal direct loan balance owed.
Mark’s Remaining Balance Due to Repay
The amount paid by A-B Tech will be added to Mark’s account balance and owed to the college. Mark is then responsible for the remaining balance due ($1,488.62) to the Department of Education, calculated as:
- Mark’s unearned share (repay) = unearned aid minus A-B Tech’s share (pre-pay)
- $1,926.88 minus $438.26 = $1,488.62
The initial amount of unearned aid due from Mark is $1,488.62, but the amount Mark needs to repay ($929.44) is calculated as:
- amount to repay = total loans disbursed minus A-B Tech’s share
- $1,367.70 minus $438.26 = $929.44
Mark’s Repayment Obligation for Grant Funds
Mark’s repayment obligation for grant funds is calculated by:
- Mark’s total unearned share minus the share to return
- $1,488.62 minus $929.44 = $559.18
- Total grants Mark received multiplied by half (grant protection allowance)
- $1,433 times .50 = $716.50
Since the grant protection allowance is more than Mark’s share to return, Mark does not owe a grant refund.
The repayment allocation back to federal programs for Mark’s student portion ($1,488.62) is as follows:
- Unsubsidized Federal Direct Loans: $731.38
- Subsidized Federal Direct Loans: $636.32
- Pell Grants (after grant protection allowance): $0
Federal policy allows Mark to repay student Return to Title IV loan funds in accordance with the terms of the Master Promissory Note that he signed.
Repayment
You will have 30 days from the date of the bill from A-B Tech to pay the full amount owed or make payment arrangements with the Business Office if you unofficially withdrew (stopped attending and failed courses) or 45 days from the date of the bill if you officially withdrew through the Registrar’s Office. If you fail to pay the amount shown, your balance will be turned over to collections. You will be unable to register for classes until the balance is paid.
Withdrawal Date
Your withdrawal date is the date you officially withdraw from all credit courses. Your withdrawal date may be different from your last date of attendance. An unofficial withdrawal will result in the last date of attendance being the last date of recorded attendance. Additional withdrawal dates can be:
- Date you began the withdrawal process
- Date you provided intent to withdraw
- Date A-B Tech determined that you withdrew due to illness, accident, or personal grievous loss
Unofficial Withdrawal
An unofficial withdrawal is when you stop attending without officially withdrawing and receive an “F” grade. At the end of each term, Financial Aid staff review the last date of attendance records for students who did not officially withdraw. As A-B Tech is not an attendance-taking institution, students will receive a “force 50%” calculation if the last date of attendance is not available at the time of calculation.
Failing to Earn a Passing Grade
If you fail to earn a passing grade in at least one course, the college must assume an unofficial withdrawal and will perform a Return of Title IV funds calculation at the 50% point of the semester.
A calculation is not required when the college can document that you completed the period or if you earn at least one passing grade.
Programs Offered in Modules
U.S. Department of Education policy states that if you withdraw after completing at least one course in one module (minimester) or a combination of modules that include 49% or more of the number of days within the payment period, you would not be considered withdrawn. You would not be subject to a Return of Title IV Funds calculation in this case.
If you withdraw before completing at least one course in one module, you will be considered withdrawn. You would be subject to a Return of Title IV Funds calculation in this case (unless the college has obtained confirmation from you that you intend to attend a module later in the term).
Post-Withdrawal Disbursements
If you completely withdraw from the college, this would be considered a post-withdrawal disbursement (a type of late disbursement). The amount of the disbursement is determined by the Return of Title IV calculation required when you withdraw from school.
If the total amount of Title IV grant and/or loan assistance that you earned as calculated under the Return of Title IV Program Funds calculation is greater than the total amount of Title IV grant and/or loan assistance that was disbursed to you (or on your behalf, in the case of a PLUS loan) you may be eligible to receive a post-withdrawal disbursement.
The State Return of Grant Funds Policy
State-funded grants are provided to assist students with the cost of attendance on the assumption that the students will attend college for the entire term for which the funds are awarded. When a student withdraws before the end of the term, an institution must determine how much, if any, state grant funds must be returned. The amount an institution must return depends on when the student withdraws. Funds must also be returned for changes in enrollment and eligibility status.
Institutions are required to calculate the amount of funds they must return when a student withdraws prior to or on the 35% point of the term via the College Foundation (CFI) Grant System. In completing the calculation, the “last date of attendance” is determined consistent with Title IV regulations for a Return of Title IV Funds.
- If a student’s last date of attendance can be verified and is prior to or on the 35% point of the term, the state grant repayment will be based on the percentage of the term not completed (or the percentage of the scheduled hours remaining in the payment period for clock hour schools).
- If the last date of attendance occurs after the 35% point of the term, the state grant award is considered 100% earned, and no state grant repayment is due.
State grant repayment formula: Known last date of attendance, prior to or on the 35% point of the term:
- The percentage of State grant earned is calculated by dividing days in attendance by calendar days in the term. Scheduled breaks of five or more days should be excluded from the calculation
- Subtract the percentage of state grant earned from 100%; this equals the percentage of unearned state grant.
- Multiply the percentage of unearned State grant by the grant amount.
Example:
A student is awarded a $1,000 state grant and completes 20% of the term prior to withdrawal. The state grant repayment is calculated as follows:
- The unearned percentage equals 80% (100% less 20% completed). The percentage earned equals 20%.
- Unearned aid equals $800 (80% of $1,000 State grant award).
- The repayment equals $800.