Return of Title IV

Federal Withdrawal Policy, Code of Federal Regulations 34 C.F.R §668.22

The Higher Education Amendments of 1998, Public Law 105-244 (the Amendments of 1998), substantially changed the way treatment of funds paid toward a student’s education are handled when recipients of Title IV funds withdraw from school.

These federal regulations stipulate that when Title IV financial aid recipients withdraw from all classes and do not complete the payment period or enrollment period (semester/term) after beginning attendance, recipients may only keep Title IV financial aid they have earned up to the day of withdrawal. The law requires that TSC calculates the amount of aid earned by the student and must return any unearned funds to the respective Title IV program (Department of Education).

If the amount of Title IV financial aid funds disbursed to students is less than the amount earned, and for which they are otherwise eligible, students are eligible to receive a post-withdrawal disbursement of the earned aid that was not received.

Financial aid is awarded with the understanding that students will complete all of their classes and attend school for the entire period (semester) for which they are awarded. When Title IV grant or loan recipients withdraw, they may no longer be eligible for the full amount of financial aid funds that they were originally awarded. Changes in enrollment, at any point in time during the semester, may result in reductions of students’ current financial aid award. A recalculation of financial aid, as a result of not attending classes, dropping or withdrawing, is federally required by the U.S. Department of Education and will be determined prior to any award adjustments that must be returned. These regulations apply when a Title IV recipient officially or unofficially withdraws. Students receiving federal financial aid are considered to be Title IV aid recipients.

Federal Title IV financial aid includes:

  • Federal Pell Grant,
  • Federal Supplemental Educational Opportunity Grants (FSEOG),
  • Federal Direct Loans (Subsidized & Unsubsidized),
  • Federal Plus Loans, and
  • Federal Iraq & Afghanistan Service Grant.

Even though Federal Work-Study is a Title IV program, it is exempt from the Return of Title IV calculation. The student is able to keep all Federal Work-Study earnings up to the time of withdrawal but is not eligible to work after the withdrawal date.