Federal Title IV student aid is disbursed to pay educational expenses while enrolled. When a student withdraws prior to the completion of 60 percent of the semester for which aid was awarded, a pro-rated portion of the aid must be returned to the federal government.
Federal regulations require a written institutional policy for the refund and repayment of federal aid received by students terminating enrollment for any reason during a semester for which payment has been received. Refund calculations to determine the refund percentage are performed using the Federal Title IV refund procedure as prescribed by the U.S. Department of Education.
The institution is responsible for the return of funds to appropriate federal sources based on the refund percentage identified. The student is responsible for repayment to the institution or the federal government for any balance owed created by the withdrawal.