Return of Title IV Funds
Return of Title IV Funds (Federal Aid)
When a student withdraws (or becomes withdrawn) during a payment period or period of enrollment, the amount of student financial aid program assistance earned is determined by a specific formula. If the student receives (or the university receives on the student’s behalf) less assistance than the amount earned, the student may be able to receive those additional funds. Students who received more assistance than what they earned must return the excess funds.
The amount of federal assistance earned is determined on a pro-rata basis. That is, if a student completes 30% of the payment period or period of enrollment, the student earns 30% of the federal assistance the student was originally scheduled to receive. Once the student completes more than 60% of the payment period or period of enrollment, the student earns all scheduled federal assistance.
The student’s loan monies (subsidized, unsubsidized and PLUS) must be on record with the Department of Education before the student's last day of attendance in order for the money to be considered within the formula. If the student is eligible for a post-withdrawal disbursement, a written notice will be mailed requesting the consent of the borrower to post the funds to the student’s account. The amount of institutional assistance earned is based on the week that the student withdraws from the university and follows the percentage the university credits the student’s charges.
If a student receives excess funds that must be returned, Johnson & Wales University must return a portion of the excess, equal to the lesser of
- the student’s institutional charges multiplied by the unearned percentage of the student’s funds
- the entire amount of the excess funds
If the university is not required to return all excess funds, the student must return the remaining amount. Any loan funds that the student must return must be repaid by the student (or the student's parents for a PLUS Loan) in accordance with the terms of the promissory note.
If a student is responsible for returning grant funds, the student does not have to return the full amount. Students are not required to return 50% of the grant assistance received that is the student’s responsibility to pay. Any amount not returned is a grant overpayment and the student must make arrangements with the university or Department of Education to return the funds.
Federal regulations establish the following allocation for students who receive Title IV, HEA program funds:
A refund owed to a student who received funds under any Title IV, HEA program will be returned to the Title IV, HEA programs from which the student received aid in the following order until the amounts received by the student from these programs is eliminated: the Unsubsidized/Subsidized Direct Loan, Parent PLUS Loan, Pell Grant, FSEOG program, all other sources of aid, and the student.