Return of Title IV Funds
Information for Students Who Withdraw or Stop Attending Classes
This policy shall apply to all students who receive federal financial aid from Title IV funds and who totally withdraw, take a leave, drop out, or stop attending all classes without officially withdrawing.
Federal regulations require that when you officially withdraw from the college or stop attending your classes that the amount of Federal Title IV Financial Aid assistance that you have “earned” up to that point must be calculated using a pro-rata formula. Institutional Aid will be pro-rated at the same amount as federal aid. If you were receiving Institutional Scholarships based on continuous full-time enrollment they cannot be reinstated if you return at a later date. Other aid, such as state grants and outside scholarships will be returned as specified by the grantor. If you received more Federal Financial Aid than you earned, the excess funds will be returned on your behalf by the College to the program in which you received aid. In many instances this will leave you owing the College.
Refund of Charges: If you withdraw during the first seven days of the semester, the amount of refund of all student charges (tuition, fees, room, and board) will be 100 percent and Title IV aid eligibility will be recalculated. Eligibility for any institutional funds will be cancelled if you withdraw during the first seven days of the semester. If you withdraw before the 60% point of the term, charges will be adjusted on a pro-rata basis. Fees paid to acquire college health insurance are not refundable. If you withdraw after the 60 percent point of the semester, the amount of refund for all student charges will be zero.
If you have completed more than sixty percent (60%) of a period of enrollment (i.e. fall semester, spring semester) you have earned all of your Federal Financial Aid and it will not be adjusted. Anything less than earning 60% of your aid will require an adjustment.
Upon notification that a student is exiting the college, the Financial Aid Office will perform the return calculation. You will then be notified by the Business Office of your pro-rated charges; any adjusted aid and if there is any outstanding balance with the College. You are responsible for making payment arrangements with the Business Office if a balance is due.
What can happen if I withdraw from all my classes or stop attending classes and get all “F” grades?
Students who withdraw from all classes prior to completing more than 60% of an enrollment term will have their aid recalculated based on the percent of the term they completed. For example, a student who withdraws completing only 30% of the term will have “earned” only 30% of any Title IV aid and/or institutional aid received. The remaining 70% must be returned. The Financial Aid Office encourages you to read this policy carefully. If you are thinking about withdrawing from all classes PRIOR to completing 60% of the semester, please contact the Financial Aid Office to discuss how your withdrawal might affect your financial aid and your possible repayment.
Per federal regulations a student who receives all failing grades for his/her semester classes will be subject to the Return to Title IV policy. A student whose attendance is documented past the
60% mark will not be subject to the Return to Title IV policy.
If a student unofficially withdraws, which means the student did not notify the college they were exiting and the college had no knowledge that a student stopped attending classes, the aid will be calculated as of the last date of attendance at a documented academically-related activity.
“Title IV Funds” refers to the Federal Financial Aid programs authorized under the Higher Education Act of 1965 (as amended) and includes: Federal Subsidized and Unsubsidized Student Loans, Parent Loans to Undergraduate Students (PLUS), Federal Pell Grants, Federal Supplemental Educational Opportunity Grant (SEOG), and Federal Perkins Loans.
A student’s withdrawal date is:
- The date the student reported they were exiting the college or officially notified the institution of intent to withdraw; or
- The midpoint or later date of the period for a student who stops attending all classes without notifying the institution; or
- The student’s last date of attendance at a documented academically related activity.
The percentage of Title IV aid unearned to be returned to the appropriate program shall be 100% minus the percent earned. No program can receive a refund if the student did not receive aid from that program. Unearned aid shall be returned by the college from the student’s account to the appropriate programs in the following order:
1. Direct Unsubsidized Student Loan
2. Direct Subsidized Student Loan
3. Perkins Loan
4. Direct Grad PLUS Loan (graduate students only)
5. Direct PLUS Loan (parents of dependent students)
6. PELL Grant
8. TRIO Grant
9. Other Title IV programs
Johnson State College and Lyndon State College will merge to become Northern Vermont University effective July 1, 2018.