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Returning Title IV Aid

Returning Title IV Federal Aid Upon Student Withdrawal:

Federal regulations require a specific calculation be used for those students who are Federal Title IV Aid recipients and withdraw from the institution prior to completing the enrollment period (term) for which they received or were eligible to receive federal aid. Federal financial aid funds are awarded to a student with the assumption that the student will complete the term for which the aid was awarded.  When a student withdraws he/she may no longer be eligible for the full amount of federal Title IV aid he/she was originally eligible to have received.  

A student is considered to have withdrawn when one of the following conditions occurs:

  • Completely and officially withdraws from the institution before the end of the term
  • Stops participating in academic related and/or attending classes before completing the term
  • Receives all failing grades for all coursed registered for at the end of the term

The withdrawal date is considered the date the student officially notifies the school of his/her intent to withdraw. If the student did not begin the official withdrawal process, then the university uses the Last Day of participating in an Academic related activity.  In the event an LDA cannot be determined, the school will use the mid-point (50%) of the term.  A student who completes more than 60% of the term is considered to have earned the full amount of their scheduled financial aid award and is not subject to the calculation.

Financial aid is disbursed to the student’s account after census day (last day to drop and add) for the term for which he/she is enrolled.  Funds are earned as the term is completed. If the student withdraws or does not complete more than 60% of the term, a calculation as defined by federal regulations is used to determine the amount of aid earned versus received.  If the student received less aid than he/she was eligible to receive, he/she may be eligible for additional funds.  If more federal aid was received than earned, the excess amount must be returned by the school and/or student to the U.S. Department of Education.  

Procedure for the Return of Title IV Funds Calculation:

When a student either officially or unofficially withdraws and has not completed more than 60% of the enrollment period and has received or was eligible to receive Federal Title IV financial aid , the Financial Aid Office is required to use these steps in determining how much aid needs returned (if received too much) or offered to the student (if earned more than received):

  1. Determine How Much Title IV Aid the Student Earned.  This is calculated by dividing the number of days a student attended during the term by the number of days in the enrollment period or term. (Note: Weekends are included in the number of days; scheduled breaks of 5 days or more are excluded from the calculation.) This percentage is then multiplied by the amount of aid disbursed or that could have been disbursed to the student.

For example, if 30% of the term was completed, the student earned 30% of the assistance he/she was scheduled to receive.  

  1. Determine the amount of Title IV aid to be disbursed to the student.  If the student received less Title IV aid than earned as determined from Step One, a Post Withdrawal Disbursement (PWD) will be made. (this instance happens infrequently and is more likely that excess funds will have to be returned)

  2. Determine the amount of Title IV aid to be returned by Doane.  Doane must return the lesser amount of the unearned Title IV aid received or the amount of the institutional charges the student incurred for the term multiplied by the percentage of aid not earned. Doane returns this money to the U.S. Department of Education and results in a repayment obligation to the student.  

Note:  Institutional charges consist of tuition, fees, room and board (if contracted with with Doane), and books and supplies.

  1. Determine the amount of Unearned Title IV aid to be returned by the Student.  Any federal grant aid funds that are calculated to be returned by the student will be returned by Doane in order to prevent an overpayment situation for the student. (Any amount of unearned grant aid that a student is required to return is called an overpayment.) This amount will be included in the amount billed to the student along with the amount determined in Step 3. Loan funds the student is required to return would be returned by the student in accordance with the terms of the Loan Agreement (Master Promissory Note) completed with the U.S. Department of Education.

When a Post Withdrawal Disbursement is Determined in Step 2:

If the student did not receive all of the aid he/she earned, a student may be entitled to a Post-Withdrawal Disbursement (PWD).  If the PWD includes loan funds, the financial aid office must obtain the student’s permission to disburse the loan/s.  A student may choose to decline some or all of the loan funds.  If the PWD includes grant aid, the school can automatically use all or a portion of the grant funds for institutional charges incurred. Institutional charges consist of tuition, fees, room and board (if contracted with the university) and books and supplies.  For other non-institutional charges, the university must obtain the student’s permission to use the PWD grant disbursement to apply toward the student’s account.  If the student does not authorize the use of grant funds toward the non-institutional charges, the PWD grant aid is offered to the student.  However, it may be in the student’s best interest to allow the school to retain the funds to reduce the amount owed to the university.  In some instances, some Title IV funds that a student was scheduled to receive my not be able to be given to the student due to other eligibility requirements.  

When Unearned Aid Must be Returned as Determined in Steps 2 and/or 3:

When it is determined that the school is required to return unearned funds, they are restored to the federal aid programs based on the type of aid the student received and the order in which federal regulations indicate the funds should be returned.  The order in which to return is as follows:

  1. Federal Direct Unsubsidized Loan
  2. Federal Direct Subsidized Loan
  3. Federal Direct PLUS (Parent or Graduate)
  4. Federal Pell Grant
  5. Federal Supplemental Opportunity Grant (FSEOG)
  6. Federal TEACH Grant

Doane is required to return any unearned Title IV funds it is responsible for returning as soon as possible but no later than 45 days of the date the school determined the student withdrew. Doane will offer any post-withdrawal disbursement of loan funds within 30 days of that date.

Once the calculation has been completed, Doane University will notify the student in writing if the student is eligible for a Post Withdrawal disbursement or whether or not excess funds were returned to the U.S. Department of Education and instructions on how to proceed.  A current Statement of Account will be included in the notification so the student is aware of his/her student account balance.  

Doane University does not offer Leave of Absences to students.  Students considering withdrawing from the institution are encouraged to contact the Financial Aid Office prior to withdrawing.  Upon request, examples of calculations are available to review.  

Financial Aid Office
Padour Walker Building Second Floor

Note:  Doane University has an institutional refund policy. This is a separate policy which pertains to refunds of tuition after withdrawal and is applicable to both Federal aid recipients as well as students not receiving federal financial aid.