What Are Title IV Funds?
Title IV school funding is a federal program that provides schools with funds to promote quality education, create safe and healthy learning environments, and maximize technology usage.
Students who withdraw, are dismissed or take a leave of absence during an academic semester may have to return any unearned financial aid funds.
What are Title IV Funds?
Title IV funds are federal student aid programs. They may come in the form of grants, loans or work-study opportunities.
Title IV was passed as part of the Higher Education Act (HEA) in 1965 and has been reauthorized ever since. The purpose of these funds is to meet all student needs across various settings, promote family engagement, and bring America’s schools into the 21st century.
These funds include:
Federal Grants and Loans
Most federal student aid is awarded in the form of loans, which may be subsidized or unsubsidized depending on your financial need.
In addition to loans, Title IV funds also include federal grant programs like Pell Grants and FSEO grants. These grants are intended to provide financial assistance to undergraduate students with limited or no means.
What are the Requirements for Returning Title IV Funds?
Students who withdraw, drop out or are dismissed before completing 60 percent of an academic period (semester) must adjust the aid disbursed to them accordingly. This applies to federal Pell Grants, FSEOG grants, Perkins Loans and federal Stafford loans – both subsidized and unsubsidized.
Schools must calculate the amount of Title IV aid a student earned and any unearned portion that must be returned to the Federal government within 45 days after withdrawal, drop out or dismissal. This calculation must be done promptly following such events as withdrawal, drop out or dismissal.
This return of funds calculation is distinct from Loyola University’s refund policy and other policies that dictate student billing practices. As such, students who must return title iv funds may still owe money to the University for unpaid institutional charges.
Unearned Title IV funds are calculated based on a student’s attendance record (number of calendar days or hours in class, depending on grant type) plus any unpaid registration fees, academic transcripts or diplomas earned prior to withdrawal.
What is a Withdrawal?
A withdrawal is the student’s official or unofficial decision to cease attending classes, depending on their individual circumstances.
If a student officially withdraws, the University may need to refund some of the Title IV funds that they earned. The exact amount that must be returned is determined through a formula.
The Return of Title IV calculation (also known as the R2T4 calculation) must be completed within 45 days after school determines a student has withdrew. The percentage of aid earned by each student is then calculated using federal formula and their attendance and withdrawal dates.
A Federal Aid Specialist (FAS) must complete the Return of Title IV calculation. Utilizing data from both UNT’s “University Withdrawal/LOA Form,” they will calculate what portion of funds each student has earned.
What is a Refund?
Refunds are funds returned by a business or merchant to customers who are dissatisfied with their purchase of goods or services. In financial aid context, refunds refer to unearned funds received through federal grant and loan programs.
If a student withdraws from all courses during a payment period or term, the federal government requires them to return part of their Title IV funds received. To determine how much should be returned, calculate how many hours attended classes and which portion of aid earned by that student.
The college must complete this calculation within 45 days of receiving notification that a student has withdrawn from the institution. At that point, funds will be returned to Title IV, HEA programs.