Student Withdrawal and Return (Loss) of Federal Title IV Funds
Higher Education Amendments of 1998, Public Law 105-244, mandates the actions that must be taken when a recipient of Title IV funds ceases to be enrolled prior to the end of any term. The Title IV aid programs are covered by these provisions include Federal Pell Grants, Iraq and Afghanistan Service Grants, TEACH Grants, Stafford Loans, PLUS loans, Federal Supplemental Education Opportunity Grants, and Federal Perkins loans. The return of Title IV aid is completely within the authority of the U.S. Department of Education and is independent of any refund of tuition charges or other actions by the University.
Title IV funds are provided to assist students with their educational expenses related to a specific period of enrollment. Students who apply for aid are agreeing to earn the funds by completing at least 60% of the respective term. If a student fails to complete at least 60% of any term for which funds are received, Title IV funds must be returned on a pro-rated basis.
Calculating and Returning Funds: The percent of the term completed is multiplied against the sum of that term’s Title IV aid to determine the earned amount. The earned amount is subtracted from the sum to determine the unearned amount that must be returned to Title IV programs. Regardless of the specific Title IV program, the calculated amount is returned to the loan programs first, if the student received loan funds for the term, and then to the grant programs.
If NLU is not required to return all of the unearned funds, the student must return the remaining portion. Any loan funds that must be returned will be repaid according to the terms of the promissory note. Any unearned grant funds a student must return is called an overpayment. A student does not have to repay a grant overpayment if the original amount of the overpayment was $50 or less. He must make arrangements with the university or Department of Education to return unearned grant funds.
The period of enrollment is based on the official start date and end date of any quarter. For NLU students the start and end dates are specific to the actual dates of the first and last class for the respective term.