Refunding of Financial Aid
Title IV funds are offered to a student under the assumption that the student will attend school for the entire enrollment period. When a student withdraws, the student may no longer be eligible for the full amount of the financial aid funds that the student was originally scheduled to receive. For students who received any Title IV aid (Pell Grant, SEOG, and Direct Loan), other than FWS, funds will be returned to the program(s) from which the student was funded. Up through the 60% point in the period of enrollment, a pro rata schedule is used to determine the amount of Title IV funds the student has earned at the time of withdrawal. After the 60% point in the period of enrollment, a student has earned 100% of the Title IV funds he or she was scheduled to receive during the period.
If the student has completed more than 60%, VC will review the student’s financial aid to determine if the institution owes the student a post-withdrawal disbursement. If the student is due a post-withdrawal disbursement, a Return to Title IV calculation will be completed. If all funds have been disbursed prior to the student withdraw, VC will document that all aid has been earned and no Return to Title IV or post-withdraw disbursement is required. The withdrawal date is the date the student began the withdrawal process, the student’s last date of attendance at a documented academically-related activity, or midpoint of the period for a student who leaves without notifying the institution. The calculation of the return of these funds may result in the student owing a balance to VC and/or the Federal Government. Return of Title IV funds are allocated in the following order: Unsubsidized Direct Loan, Subsidized Direct Loan, Direct PLUS Loan, Pell Grant, and SEOG. Further details and examples can be obtained in the Financial Aid Office.