Return of Title IV Funds
The Higher Education Amendments of 1998 determines the way federal funds are to be handled when a recipient of federal financial aid withdraws from school. These rules assume that a student earns his or her aid based on the period of time he or she remained enrolled and in attendance. If the amount disbursed to the student is greater than the amount the student earned, and for which the student is otherwise eligible, he or she is eligible to receive a post-withdrawal disbursement of the earned aid that was not received.
- When does the Return of Title IV funds apply?
The Return of Title IV funds apply if the student withdraws through the 60% point in the semester. If a student withdraws on or before this point, date defined by the university, the 60% point he or she may be subject to a repayment.
- Which Title IV funds are included in the provisions?
The Title IV funds that must be included are Federal Subsidized and Unsubsidized Direct Loans, Federal Direct PLUS Loans, , Federal Pell Grants, Federal SEOG, Federal TEACH Grant and Federal Iraq and Afghanistan Service Grants.
- How will the university determine the student’s withdrawal date?
The date of withdrawal is the date the students completes the withdrawal form or the date the student officially notifies the Registrar’s Office (this notification may take place via APU e-mail, letter or in person).
- How will the school determine the amount of Title IV funds a student earned?
During the first 60% or the enrollment period (term), a student “earns” Title IV funds in direct proportion to the length of time he or she remains enrolled and in attendance. A student who remains enrolled and in attendance beyond the 60% point earns all aid for the period of enrollment (term).
- Time frame for the return of Title IV funds:
APU will return unearned funds for which it is responsible as soon as possible,
but no later than 45 days after the date it is determined the student withdrew.
- In what order must funds be returned?
If it is determined that funds must be returned to a federal program, the funds must be returned in the following order:
- Unsubsidized Direct Loan
- Subsidized Direct Loan
- Direct PLUS Loan
- Federal Pell Grant
- TEACH Grants
- Iraq and Afghanistan Service Grant