Policy 220.60 - Federal Financial Aid Return of Funds Policy
ORIGINATOR: Associate Vice President, Financial Aid
SUBJECT: Federal Financial Aid Return of Title IV Funds Policy
Introduction Pursuant to federal regulation 668.22, the university is required to calculate a Return of Title IV Funds on all federal financial aid recipients who stop participating and receive a FN grade, withdraw, or drop their last class in a semester on or before they reach the 60 percent attendance point. This calculation and notification must be done within 45 days of the date that the university determines that the student has withdrawn, dropped, or stopped participating. Students who certify their intent to return during the same semester when they withdraw or drop will not need a calculation unless they do not return as scheduled.
Definitions Title IV Recipient means a student who is receiving Federal Stafford Loans, Federal Perkins Loans, Federal PLUS Loans, Federal Pell Grants or Federal Supplemental Educational Opportunity Grants.
Semester means Fall, Spring, or Summer.
Period of enrollment is all of the sessions a student is enrolled in during the semester.
Session is a compressed class which is less than 17 weeks in length.
Exclusions from Return of Title IV Funds includes Federal Work Study, UMUC, state, and private scholarships and loans.
Withdraw is when a student either formally ends their enrollment in class (es) or stops participating and receives a Failure due to Non-Attendance (FN) grade.
Drop is when a student rescinds their enrollment before the class has begun.
The university will determine the amount of federal funds to be returned to the aid programs in accordance with federal requirements.
Students receiving federal financial aid who withdraw, receive a FN or drop from their classes may lose some or all of the aid that has already been disbursed.
Students receiving financial aid who withdraw, receive a FN or drop from their classes may not receive further financial aid disbursements for that semester/period of enrollment unless they enroll in additional classes.
Students receiving financial aid who owe a debt to the institution based on this calculation are personally responsible for payment of charges.