Title IV Refund Examples

Example #1

You are a Title IV recipient who is enrolled in the fall semester. There are 108 days in the payment period. You officially withdraw online after attending 50 days in the payment period and therefore have earned 46.3% of your federal student aid (50/108=46.3%). This means 53.7% of the aid is unearned and must be returned to the Title IV programs.

Disbursed Aid

Institutional Charges

Student Refunded
$3636 (Disbursed Aid) - $1240.33 (Institutional Charges) = $2395.67 Refund prior to withdrawing from classes

Earned Aid
$3636 (Disbursed Aid) x 46.3% (percentage of term completed) = $1683.47 (Earned Aid)

Unearned Aid Returned
$1240.33 (Institutional Charges) x 53.7% (unearned aid) = $666.06 or $666 rounded to the nearest whole dollar

Conclusion
$666 total aid needs to be returned. The order in which the aid is returned is all Direct Unsubsidized Loan is removed and the Direct Subsidized Loan was reduced by the difference. Because the student was already refunded the credit balance of $2395.67, the $666 in student loans that was returned to the Department of Education has now created a balance at Clark State Community College in the amount of $666.

Example #2

You’re a Title IV recipient who is enrolled in the fall semester. There are 110 days in the payment period. You stop attending and fail to officially withdraw from classes within the posted withdrawal period. Your instructors assign all “UW” grades (unofficial withdrawals) for the semester and you are, therefore, considered to have unofficially withdrawn from the semester. Since Clark State doesn’t have a last day of academically related activity, the midpoint of the term is used and you have earned 50% of your federal student aid. This means 50% of the aid is unearned and must be returned to the Title IV programs, which could result in a balance due to Clark State.

Example #3

You’re a Title IV recipient who is enrolled in A and B terms fall semester. There are 110 days in the payment period. You withdraw from the A term classes and fail to reply to the email from financial aid requiring written confirmation of your future attendance in the B term classes. You are therefore considered to have withdrawn from fall semester and a recalculation is required. You completed 11 days of the scheduled 110 days and have earned 10% of your federal student aid (11/110=10%). This means 90% of the aid is unearned and must be returned to the Title IV programs, which could result in a balance due to Clark State.