Title IV Funds are federal financial aid grant, work study, and loan funds in the following programs:
The Office of Student Financial Assistance (OSFA) is required by the Higher Education Act of 1965, as amended in 1998, to determine the amount of financial aid that a student earned for an academic semester when the student does not complete at least one course within that semester. When the earned aid is less than the disbursed aid, the institution and student are responsible for returning the "unearned" disbursed funds to the appropriate agency.
Jane Doe is a music major in the College of Arts, Humanities, and Social Sciences. Her semester begins on August 23 and ends December 12. On September 20 (28 days into the semester), she drops her classes.
Jane's institutional charges are as follows:
Jane receives the following financial aid award:
|Federal Direct Subsidized Loan||$1,732.00|
|Federal Direct Unsubsidized Loan||$990.00|
|Federal Pell Grant||$3,248.00|
|Federal Direct Parent PLUS Loan||$18,280.00|
Amount refunded to Jane: $1,130.00.
As Jane has completed 28 days (25.89 percent) of her term, according to the federally mandated calculation, 74.11 percent of the unearned portion of her aid, equaling $17,687.67, must be returned.
NSU has to return all of the following aid applied toward Jane’s institutional charges:
|Federal Direct Subsidized Federal Direct Loan||$1,732.00|
|Federal Direct Unsubsidized Federal Direct Loan||$990.00|
|Federal Direct Parent PLUS Loan||$14,965.67|
|Total Jane Owes to NSU||$17,687.67|
Jane is not eligible to receive a tuition reversal because she dropped her classes after the refund period. A collections hold is placed on Jane's account at the time the funds are returned to the lender, which prevents Jane from registering for any additional classes, receiving transcripts, using the RecPlex in the Don Taft University Center, and accessing certain services available through SharkLink.
Bob Smith is a graduate student at the Abraham S. Fischler College of Education and School of Criminal Justice. His term begins May 10 and ends August 15. On July 25 (77 days into the term), Bob accepts a full-time job and drops his classes.
Bob's institutional costs consist of the following:
His financial aid package consists of:
|Disbursed Federal Direct Unsubsidized Loan||$10,141.00|
Based on Bob's attendance (78.57 percent of the term), Bob has "earned" all of his financial aid for the term and will not have to return any funds.
Susan Thomas is a student in the M.S. in Computer Science program. Her term begins on May 9 and ends on June 26. Her federal student loan funds are credited to her student account on April 27. On the same day, the loan proceeds are applied to cover Susan's institutional charges, and the funds in excess of those charges are refunded to her. On April 28, Susan drops her classes due to unforeseen circumstances.
Because Susan dropped her classes prior to the first day of class, she is not subject to the Title IV calculation. A 100 percent reversal of tuition and fees will be made to her student account, creating a credit balance. When a course is dropped before the student attends the first class, NSU is required to return all funds that were applied to tuition and fees. Therefore, the credit balance will be returned to the appropriate Title IV account(s). In addition, Susan is required to return to the lender the refund that she received. It is recommended that students return their loan refunds directly to NSU's Office of the University Bursar. This return of funds to the lender will ensure that there is documentation on the student's NSU student account.
The Halmos College of Arts and Sciences offers courses that span a standard semester as well as courses that span two half terms during a semester. Sara Miller is enrolled in two half terms during the fall (FALL 1 and FALL 2). On September 2, she drops all courses in Fall 1.
|Undergraduate First Part of Term
Aug. 23 -Oct. 17
|Undergraduate Second Part of Term
Oct. 18-Dec. 12
|Enrolled||No longer enrolled||still registered|
On September 4, Sara receives a notification to her NSU email from the Office of Student Financial Assistance requesting she complete the Confirmation of Future Attendance Form within 5 business days.
The chart below summarizes the actions that Sara may take:
If Sara selects "YES, I will attend course(s) during the second part of the semester"
The OSFA will not need to take further action and Sara may retain the federal financial aid funds advanced to her for the semester.
However, if she fails to attend courses as indicated, she will be considered withdrawn from the semester, and the OSFA will be required to perform the Return of Title IV Funds calculation which may result in an outstanding balance on Sara's student account.
If Sara selects "No, I will not attend course(s) during the second part of the semester"
|Sara's Fall 2 courses will be dropped, and the OSFA will be required to perform a Return of Title IV calculation which will determine how much of her federal financial aid Sara will have to return as unearned. This choice may result in an outstanding balance on Sara's student account.|
for 5 business days
If Sara does not complete and submit the Confirmation of Future Attendance Form
|the OSFA must assume that Sara will NOT attend course(s) during the second part of term, and the OSFA will perform a Return of Title IV calculation. Sara's Fall 2 courses will be dropped. The calculation will determine how much of her federal financial aid funds will have to be returned as unearned. This may result in an outstanding balance on Sara's student account.|
It is important to remember that students must return all unearned federal financial aid or set up a repayment agreement for grants with NSU's collections department within 45 days of notification or they will lose eligibility for future Title IV aid.
At NSU, the following colleges and centers offer courses in multiple parts of term: