Federal Return of Title IV Funds Policy


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 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 or minimester, the student will be considered to have earned all funds disbursed and no return of funds will be required unless a student had received a loan that was subject to repayment under the terms of the loan.

Any student who decides to completely withdraw, or stop attending classes at the College during a semester and who has been disbursed Title IV funds may be required to repay a portion of those funds to the Department of Education and/or the College based on the federal calculation. Returns for funds are calculated in the following order:

  1. Unsubsidized Direct Loans
  2. Subsidized Direct Loans
  3. Direct Plus Loans
  4. Federal Pell Grants
  5. FSEOG

Students are determined to be completely withdrawn when they officially withdraw from all registered courses OR when the College determines students are no longer attending classes. A-B Tech does not require that courses have an attendance policy. As such, if a student receives a failing grade in all courses (or a combination of failing grades and withdrawals) the College will attempt to verify the last date an assignment was submitted. If that date cannot be determined, the College will use the 50% point to complete the calculation. Aid is considered earned after the 60% point of a semester. It is possible that the student may owe the Department of Education directly based on the number of days attended. If this occurs, the balance will not be covered by A-B Tech and the student will need to pay The Department of Education directly.

If the College determines a return is necessary it will be added to the student account as a credit balance within 14 days. The College will notify the student of any return balance via e-mail and Financial Aid Self Service module.

If the student completely withdrawals prior to a disbursement, the College will complete a calculation to determine how much aid was earned (this is called a post-withdrawal disbursement). If the student was packaged loans, those amounts will be prorated and offered to the student within 10 days. The student will have 14 days to accept. If the student does not accept within 14 days, the College will assume the offer for loans was declined. Federal Pell Grant and FSEOG awards (federal grants) will be processed and disbursed within 14 days. Any amount will first be applied to the student’s balance with the college with residual funds disbursed to the student if any remain within 14. Funding will be returned by the College to the Department of Education within 31 calendar days.