Return to Title IV
Federal regulations require PVAMU to perform a refund calculation for unearned aid on all students who withdraw on or prior to 60% of the payment period (semester/term) and received Federal Title IV funds.
“A school must return unearned funds for which it is responsible as soon as possible, but no later than 45 days from the determination of a student’s withdrawal.” – FSA HB 5-31, 32, 126
Repayment of Financial Aid due to Official Withdrawal:
If a student withdraws
or cancels enrollment on or before the 60% point of the semester, all or a portion of Title IV funds (Federal PELL Grant, Federal SEOG, Federal Direct Subsidized and Unsubsidized, Federal Direct PLUS and Federal Grad PLUS Loans) awarded must be returned according to provisions of the Higher Education Act amendment of 2008. The calculation and return of these funds may result in debt to the university and/or U.S. Department of Education. In addition, any future financial aid will be cancelled. More information…
Repayment of Financial Aid due to Non-Passing Grades (Unofficial Withdrawal):
Federal regulations also require the university perform a refund calculation for unearned aid on all students who unofficially withdraw (cease attendance without school notification). Therefore, a student who does not earn a passing grade in the hours enrolled for in any given semester due to lack of attendance and received Title IV funds will be considered an unofficial withdrawal unless appropriate documentation is provided. These funds must be calculated using the 50% point of the semester unless the student can otherwise provide documentation for an official last date of attendance. With the calculation and return of these funds, as with an official withdrawal, debt and/or cancellation of future aid may result.
Title IV Funding Programs
The federal assistance programs for which Title IV funds are returned include: Pell Grant, Supplemental Educational Opportunity Grant, TEACH Grant, Direct Graduate Plus loan, Direct Parent Plus loan, Subsidized Direct Stafford loan and Unsubsidized Direct Stafford loan.
Return to Title IV Formula
Prairie View A&M University’s responsibility is to determine the amount of Title IV aid assistance that the student earned as of the date enrollment ceased (withdrawal date). The federal Return of Title IV funds formula dictates the amount of Title IV aid that must be returned to the Federal government by the school within 45 days of the students’ notification date or the that Prairie View A&M University determines the student’s enrollment ceased.
Withdrawal Date Determination
Withdrawal dates are determined in two ways:
- Through a student-initialed withdrawal (official)
- Through a PVAMU administrative withdrawal (unofficial)
The student-initiated withdrawal occurs when the student notifies PVAMU of his/her intent to withdraw. Administrative withdrawal occurs when PVAMU determines that the student is no longer enrolled based on a variety of reasons a such as (but not limited to): a student’s lack of academic activity, failure to establish academic activity at the beginning of a new term, student dismissal due to disciplinary reason or failure to pay tuition.
Sixty Percent (60%) Rule
The initial amount of Title IV assistance earned is based on the number of calendar days that the student was enrolled within the semester. During the first 60% of the enrollment period, a student earns Title IV funds in direct proportion to the length of time he/she is enrolled. The initial percentage of aid earned is determined by the total number of calendar days completed in the enrollment period (from the start of the semester through the date student initiated withdrawal), divided by the calendar days in the semester. Scheduled breaks of five or more consecutive days are excluded.
Returning of Title IV Funds Order
If the amount disbursed to the student is greater than the amount the student earned, the student and/or PVAMU must return unearned funds, to the Federal programs, in the following order:
- Unsubsidized Direct Stafford Loan
- Subsidized Direct Stafford Loan
- Direct Graduate PLUS Loan
- Direct Parent PLUS Loan
- Federal Pell Grant
- Federal SEOG Grant
- TEACH Grant
If the amount disbursed to the student is less than the amount the student earned, the student is eligible to receive a post-withdrawal disbursement of the earned aid that was not received.