Title IV (student aid) funds are awarded to a student under the assumption that the student will attend school for the entire period for which the assistance is awarded. When a student withdraws, the student may no longer be eligible for the full amount of Title IV funds that the student was originally scheduled to receive. When a student receiving Title IV student financial aid withdraws from all courses, the aid must be adjusted in accordance with rules established by the U.S. Department of Education. These calculations may result in the student owing a University balance.
These rules apply to both students that formally withdraw from classes as well as students that receive a zero Grade Point Average (GPA) for a semester.
STUDENTS THAT WITHDRAW: Calculation is based on the last date of attendance as reported by the UMA Registrar’s Office.
STUDENTS WITH A ZERO GPA: Students with any assigned grades other than “A” through “D”; including but not limited to: “L”, “MG”, and “W”. “I” and “F” grades will be reviewed based on faculty reporting and conflicting information. Federal policy requires that colleges determine the last date of attendance for each student every semester. If a student who began attendance and has not officially withdrawn fails to earn a passing grade in at least one course offered over an entire period, the institution must assume, for Title IV purposes, that the student has unofficially withdrawn. As UMA does not have a formal Leave of Absence policy, the Return to Title IV recalculation will occur at the time of the 0 GPA reporting.
Return of Title IV Funds/Institutional Refunds
When a student withdraws, University policies and federal requirements may result in charges and financial aid being reduced. If a last date of attendance is on or before the 60% point of the enrollment period, the federal refund calculation is performed. These refund calculations follow a specific percentage of adjustment based on the date of withdrawal and may require a return of financial aid to the financial aid accounts. Refund calculations take into account all federal financial aid received. The calculation is generally based upon the percentage of the enrollment period that has been completed. Unearned funds that a student owes to a grant program are treated as an overpayment or makes satisfactory repayment arrangements within 45 days from the earlier of (1) the date the institution sends the student notification of the overpayment; or (2) the date by which the institution was required to notify the student of the overpayment (30 days after the date of the institution’s determination that the student withdrew).
The last date of attendance is determined to be the withdrawal date. If the student ceases attendance without providing official notification of withdrawal to the institution, the mid-point of the payment period will be the withdrawal date for the purpose of returning Title IV funds.
Return of Funds
Funds returned as a result of a refund or overpayment is returned to the Title IV accounts in an order prescribed by law and regulations. Please refer below for information for that order. The Institution has 45 days from the date the institution determines that the student withdrew to return all unearned funds for which it is responsible.
Order of Return of Title IV Funds as prescribed by the Higher Education Act:
- Unsubsidized Federal Stafford Loans
- Subsidized Federal Stafford Loans
- Federal Perkins Loans
- Federal PLUS (Parent) Loans
- Federal Pell Grant
- Academic Competitiveness Grant
- National SMART Grant
- Federal Supplemental Educational Opportunity Grants (SEOG)
- Other Title IV aid programs
- Other federal, state, private or institutional aid
- The student