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\If a student withdraws from UNK and is receiving Title IV financial aid (Federal Perkins Loan, Federal Stafford Loan, Federal Pell Grants, Federal Supplemental Educational Opportunity Grants, State Scholarship Award Program funds) federal law requires a portion of this assistance to be returned. The amount to be returned will be withheld from the student's institutional refund (tuition, room and board). If the refund does not cover the amount due back to these programs, the student will be billed the difference.
The amount of Title IV funds that must be returned is based on the student's withdrawal date, which is defined at UNK as the date the student signed the withdrawal form. The amount is calculated as demonstrated in the example below:
- Establish withdrawal date and percentage of aid earned.
1/24/2000 Withdrawal Date
15 days attended/116 days in the payment period = 13% Completed/Earned Aid
If the percentage completion is greater than 60% the student is entitled to all financial aid received. None must be returned.
- Next the percentage and dollar amount of Unearned Aid and UNK Costs are calculated:
$1696.53 disbursed Title IV aid for the semester X 13% Earned Aid = $220.55 (dollar amount of earned aid)
100% - 13% = 87% Unearned aid percentage
$1696.53 disbursed Title IV Aid X 87% Unearned = $1475.98 (dollar amount of unearned aid)
$1200 (Total UNK Costs as determined by institutional refund policy) X 87% = $1044.00 unearned % to Cost
- The amount of aid UNK must return is determined:
The lesser of unearned aid amount OR unearned to cost from step 2 is determined. $1044 (UNK Share that must be returned to Title IV programs)
Student's Share = $1475.98 - $1044 = $431.98 Student's Share (Title IV Funds the student must return).
The Federal statute determines the order of return of the Title IV funds. It is as follows:
- Unsubsidized Federal Stafford Loan
- Subsidized Federal Stafford Loan
- Federal Perkins Loans
- Federal Parent Loan for Undergraduate Students (PLUS)
- Federal Pell Grant
- Federal SEOG
- Other Title IV assistance for which a return of funds is required.
In the case study outlined above, UNK would return to the student's lender $887.55 in Unsubsidized Stafford Loan funds and $156.45 Subsidized Stafford Loan Funds.
UNK is required to complete the Return of Title IV Funds calculation within 30 days of your withdrawal from school. Withdrawing students will be notified in writing of the results of this calculation shortly after.
16 May 2005
