Return of Title IV Funds

Return of Title IV Funds

The U.S. Department of Education expects that Federal aid recipients complete all courses attempted and paid for with Federal aid. Therefore, if students received federal assistance from any federal aid program (Federal Perkins Loan, Federal Direct Stafford Loan, Federal Pell Grant, Federal SEOG, or Federal Parent PLUS Loan) and withdrew from the University during a semester that they began attendance, Ave Maria University (AMU) is required to determine the amount of federal aid that they have earned as of their withdrawal date. 

The percentage of the semester completed is determined by dividing the total number of calendar days in the semester into the number of calendar days that the student completed as of the withdrawal date. 

If a student notifies the Registrar in writing that they are withdrawing for any reason, AMU will be required to complete a withdrawal calculation and a student’s aid may be adjusted for the semester. The withdrawal date will be the date that official notification was provided to AMU of the student’s intent to withdraw. The percent of federal aid that was earned by the student is equal to the percent of the semester that was completed, as of the withdrawal date, if this date occurs on or before completion of 60% of the semester. If the withdrawal date is after completion of 60% of the semester, the student will have earned 100% of the federal aid and no adjustments will be made to their federal aid for the semester. 

If a student stops attending classes and does not notify the Registrar’s Office that they are withdrawing, the student is considered to have unofficially withdrawn. Unofficial withdrawals are recorded when grades have been posted by the Registrar and the student record shows that the student received all (or combination) F, I, and/or W grades for the semester. A return of Title IV withdrawal calculation is performed based on the last known date of attendance provided by the professor.  Once the withdrawal calculation is performed, a portion of federal aid may be revoked from the student’s account at AMU and returned to the federal government. This process typically results in the student owing money to the Office of the Bursar. When a withdrawal calculation has been completed and aid has been adjusted, students are notified in writing by the Financial Aid Office. Adjustments may also be made to the student’s state and university awards if required. 

AMU will return all unearned aid to the U.S. Department of Education for the student. The unearned aid will be credited to the outstanding balances on federal loans made to the student or on behalf of the student for the semester in which the return was required. The order for the return of aid is as follows: Federal Direct Unsubsidized Stafford Loan, Federal Direct Subsidized Stafford Loan, Federal Direct PLUS (received on behalf of the student), Federal Pell Grant, and Federal SEOG.

Withdrawing will also affect a student’s Satisfactory Academic Progress and may jeopardize future federal financial aid eligibility. To make sure a student understands the possible impact on financial aid, a student should consult with a financial aid counselor prior to withdrawing from the university.