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Federal Policy for Return of Title IV Funds
If a recipient of Title IV aid withdraws during the semester, federal regulation requires the institution to calculate the amount of Title IV aid the student did not earn. Unearned Title IV funds must be returned to the appropriate Title IV programs. Title IV aid consists of Federal Pell Grant, Federal SEOG, Federal Perkins Loan, Federal PLUS Loans, and Federal Subsidized and Unsubsidized Stafford Loan.
Both the institution and the student may be required to return funds received. Students owing dollars to Federal Student Loan Program begin repayment six months after the student ceases to enroll at least half-time. Dollars owed by the student to Federal Grant Programs must be repaid immediately.
Calculation of Earned and Unearned Federal Aid
Missouri Western will calculate the percentage of the enrollment period the student completed and multiply this by the amount of aid that was disbursed as of the date of withdrawal to determine what the student has earned. To determine the unearned portion, Missouri Western will subtract the earned amount from the aid disbursed as of the date of the withdrawal. Missouri Western will return an amount that is equal to the total institutional charges for the period of enrollment multiplied by the percentage of the Title IV aid that was unearned. The student is responsible for returning an amount that is equal to the funds received by the student times the percentage of the Title IV aid that was unearned. In addition, the student must repay the school the percentage of unearned aid that the school returns to Title IV programs.
Example:
| Institutional Charges | $1,000 | |
| Title IV Aid for Period | $3,000 | Student picks up check for $2,000 |
| Percent Earned | 40% | |
| Earned Title IV Aid | $1,200 | $3,000 x 40% |
| Percent Unearned | 60% | |
| Unearned Title IV Aid | $1,800 | $3,000 x 60% |
| School: 60% of $1,000 | $600 | School must return $600 to Title IV and Student must repay $600 to MWSU |
| Student: 60% of $2,000 | $1,200 | Student must return $1200 to Title IV |
Order of Return
Unearned Federal Financial Aid must be returned to Title IV Programs in the following order:
- Unsubsidized Loans
- Subsidized Loans
- Perkins Loans
- Plus Loans
- Pell Grant
- FSEOG
- Other
Missouri Western will return their portion of Title IV aid first, and notify the student of their responsibility to repay the portion of Federal Aid the student received as well as the student's responsibility to repay MWSU. The student's responsibility to repay loan dollars will be repaid in accordance with the Terms of their Loan. The student's responsibility to repay grant dollars will be divided in half.
Example (continued from above):
| Title IV Aid received by student: | Loans = $1,000 |
| Grants = $2,000 |
Missouri Western will return $600 to the Lender (60% of $1,000). The student is responsible for repaying the loan balance of $400 ($1,000 - $600) within the terms of their loan. The student is responsible for repaying 1/2 of their grant responsibility of $800 ($1,200 - $400). The student must repay in full, $400 to the Federal Grant Program within 45 days, or make arrangements with the school to repay these dollars, or make arrangements with the Department of Education to repay these dollars (within 45 days).
The student must repay Missouri Western the $600 that Missouri Western returned to the Lender. Missouri Western will notify the student of their responsibility within 30 days of being notified of the student's withdrawal or that the student has ceased attending classes.
Failure to Attend Classes and Unofficial Withdrawals
If a student ceases to attend class or leaves Missouri Western for any reason, the student is required to officially withdraw from Missouri Western. Refer to the College Catalog for Official Withdrawal Procedures.
If a student does not officially withdraw from classes and Missouri Western determines the student is no longer attending, Missouri Western is required to calculate the percentage of aid the student earned and return unearned aid to the appropriate program. Students will be notified of their responsibility to repay unearned funds to the appropriate program and to Missouri Western.
If Missouri Western determines a student never attended their classes, the student is required to repay all funds received immediately. If funds are not repaid, the student will be turned over to the Department of Education for collection and their eligibility to receive Federal Financial Aid will be terminated. The student will remain ineligible to receive Federal Financial Assistance at any post-secondary institution until these dollars are repaid.