Return of Title IV – Official Withdrawal Example
Student Did Not Attend at Least 60% of the Term
Student was enrolled full-time for courses that spanned the full 16 weeks. The student, after attending all courses, officially withdrew from all courses on day 35. The original charges for tuition, fees, and books for the term were $2,200. The funds disbursed (credited) to the student account were: $1,732 Federal Direct Subsidized Loan and $2,969 Federal Direct Unsubsidized Loan. The credit balance of $2,501 ($1,732 + $2,969)-$2,200) was paid to the student after attendance verification.
- There are 113 days in the payment period.
- 35 divided by 113 = .3097. This is how much aid the student earned.
- 100%-30.97%=69.03% unearned
- Apply the percentage completed (earned), 30.97 to:
- Title IV (federal) aid disbursed: $4,701 times 30.97% = $1,456.06 earned aid
- $4,701 minus $1,456.06= $3,244.94 unearned aid.
- Apply the unearned percentage 69.03% to:
- Total charges for the term: $2,200 times 69.03%=$1,518.58 unearned charges
- Des Moines Area Community College is responsible for returning the lesser of unearned charges or unearned aid; $1,518.58 of unearned charges would be returned to the lender because it is less than $3,244.94 of unearned aid.
Student Attended at Least 60% of the Term
Student enrolled half-time (six credits) for courses that only span the first 8 weeks of the term. Student, after attending all courses, officially withdrew from all courses on day 35. The original charges for the term were $1,350. The funds disbursed (credited) to the student's account were: $2,500 Federal Direct Subsidized Loan. The credit balance of $1,150 ($2,500-$1,350) was paid to the student after attendance verification.
- There are 56 days in the payment period (8 weeks times 7 days per week = 56 and there are no scheduled breaks of 5 or more days)
- 35 divided by 56 = .6250 or 62.50%
- As 62.50% is over 60%, no return of funds is required.