Return of Title IV Funds

Federal Refund Policy for Title IV Financial Aid Recipients

When a Title IV financial aid recipient withdraws from all classes, the percentage of the period completed, based on class days will be calculated. The federal government mandates that students who withdraw may only keep the financial aid they have ‘earned’ up until the time of withdrawal. Title IV funds in excess of this amount must be returned by the University and/or Student to the Federal government. If you withdraw from (or stopped attending) all classes before 60% of the semester has been completed, you must pay back some of the financial aid you received.

To determine how much financial aid a student has earned, we will calculate the percentage of the period completed, based on calendar days. Scheduled breaks of 5 days or longer will be excluded. This percentage is then multiplied by the total amount of Title IV aid disbursed (paid) and that could have been disbursed. The Institution and/or Student must return the unearned amount of aid.

If the amount disbursed to the student is less 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.

Official Withdrawals

The withdrawal date for official withdrawals is the date on which the student begins the official withdrawal process or the last documented date of attendance at an academically related activity if this date more accurately reflects the student’s withdrawal date.

Unofficial Withdrawals

The University requires instructors to provide a last date of attendance for students who have received a non-passing grade. After grades are posted for the term, a report showing all Title IV recipients who have not officially withdrawn and who have not earned any passing grades is generated.

A Return of Title IV calculation is performed within 30 days of the date of Purdue Northwest’s determination that the student withdrew and funds are returned within 45 days after the date Purdue Northwest determined the student withdrew.

Priority of Return of Funds by the School

Priority order in which Title IV funds must be returned by Purdue Northwest:

  1. Unsubsidized Direct Loans
  2. Subsidized Direct Loans
  3. Federal Perkins Loans
  4. Direct PLUS Loans
  5. Federal Pell Grants
  6. Federal Supplemental Educational Opportunity Grants (FSEOG)
  7. Other Title IV Aid Programs
  8. Other Federal, State, Private or Institutional Aid
  9. The student

Priority of Repayments (Return of Grant Funds) by the Student

Priority order in which Title IV funds must be returned by the student:

  1. Federal Pell Grants
  2. Federal Supplemental Educational Opportunity Grants (FSEOG)

Credit-Hour Programs

To determine how much financial aid a student has earned, we will calculate the percentage of the period completed, based on calendar days. Scheduled breaks of 5 or more consecutive days will be excluded. This percentage is then multiplied by the total amount of Title IV aid disbursed and that could have been disbursed. Purdue Northwest and/or the student must return the unearned portion of financial aid.

This policy applies to all Title IV financial aid recipients, including first time students. You will be notified by mail if you have withdrawn from all classes and must repay a percentage of you financial aid. If you have any further questions, please contact the Bursar Office .