TITLE IV fund recipients who withdraw from all their classes during their period of enrollment may be subject to federal government refund and repayment requirements. The TITLE IV funds subject to these regulations are Federal Pell Grant, Federal Supplemental Educational Opportunity Grant, Federal Stafford Loans, Federal Perkins Loans, and Federal PLUS Loans.

Refund/Return of Title IV Policy (Return of Federal Funds)

The Higher Education Amendments of 1998 established new provisions that require a certain percentage of Title IV funds be returned to the Department of Education or to a student loan lender when a student completely withdraws from all classes. This Return of Federal Funds could include money that the student was given as a refund at an earlier time. Bellevue University has an institutional refund policy that affects all students withdrawing from classes. See the Education Costs and Policies section of the Bellevue University catalog for detailed information on this policy. The return of Title IV funds policy is a separate policy and has nothing to do with the institutional refund policy. This new procedure, which is called the Return of Federal Funds, only applies if the student completely withdraws before completing 60% of the term for which he/she received Federal funds or has been awarded Federal funds. Federal funds that may have to be returned are Federal Pell Grant (Pell), Federal Supplemental Education Grant (SEOG), Federal Stafford and/or PLUS Loans, Federal Perkins Loans, and other Title IV Programs. Below is an explanation of this procedure.

Official Withdrawals: (See Withdrawal or Dropping Classes)

When a student officially withdraws from all classes for the term, the Financial Aid Office will perform three steps in calculating how much of a student's federal financial aid must be returned to the U.S. Department of Education or a student loan lender. This process has nothing to do with the Institutional Refund Policy that may be in affect at the time of the student's withdrawal.

Step 1: Determine how much aid the student is entitled to, or has "earned" by attending classes. The date that the student starts the withdrawal process and drops all classes is the official withdrawal date and will be used to calculate the percentage of time the student was enrolled in the term and how much aid the student is entitled to receive or has "earned." The calculation used for this policy will use the total number of calendar days the student attended divided by the total number of calendar days of the enrollment period (minus authorized breaks of five days or more). The amount of aid includes funds actually disbursed plus those funds authorized but not disbursed at the time the student withdrew.

Step 2: Determine how much of the federal aid must be returned. The earned percentage is subtracted from 100% and determines the "unearned" amount of federal aid. This percentage called "earned aid" shall be subtracted from 100% and the results called "unearned aid" shall be used to determine the amount of Title IV money that Bellevue University must return from institutional costs to the Title IV programs. Institutional costs are defined as charges that Bellevue University assesses a student for education expenses that are paid to Bellevue University directly. The following education expenses are considered institutional costs: Tuition, fees, book charges (if purchased using a book waiver). If a student drops after the 60% point in the enrollment period, the percentage of Title IV funds earned is 100%. There is no institutional refund, nor is there a calculation of Return of Title IV funds. Prior to the 60% point, Bellevue University must determine the percentage of Title IV funds earned. Bellevue University shall return the unearned amount of aid to all aid programs in a timely and specified order.

Step 3: Determine who must return the unearned aid. This could be the University, the student, or, in some cases, both the University and the student. The unearned percentage is also used to determine, if necessary, how much the University must return of the federal funds it received as payment for tuition, fees, and bookstore charges.

In the case where a student receives Title IV funds greater than the "earned aid" amount, the student may be subject to a return of some of the funds. There are special rules for the return of money that the student has received:

1. Loan proceeds-the student (or parent, in the case of PLUS loan), repays the proceeds according to the terms of the promissory note.
2. Federal grants (Pell/SEOG)-50% of the amount due in the return calculation is expected to be returned to the appropriate grant program. These funds must be repaid to Bellevue University within 45 days of notification or arrangements for repayment must be made with the Department of Education. After 45 days the student will be placed in overpayment status and not be eligible for further Title IV funds until this situation is resolved.

Once it is determined how much must be returned, the federal funds must be returned in an order specified by law. This order is: Unsubsidized Federal Stafford loan, Subsidized Federal Stafford loan, Federal Perkins loan, Federal PLUS loan, Federal Pell Grant, and Federal SEOG, and other Title IV Programs. Federal Work-Study earnings are not affected. Below are two examples of the Return of Federal Funds procedures for students who officially withdraw. Copies of these and other samples of Return of Title IV Funds calculations are available from the Financial Aid Office.

Example #1 (12 Week Session)

Student A's total institutional charges are $1900, which include $1619 in tuition and fees and $281 in books and supplies charged at the bookstore. The student enrolled in the Fall Evening 12-week session but withdraws from all classes after attending for 34 days. The 12-week session is 83 calendar days long. The student received a student loan for $2000 and was awarded a $800 Federal Pell Grant.

Step 1.The student has earned 41% (34 days/83 days = 41%) of the financial aid that he/she already received. The amount of aid the student received was $900 (Total aid was $2800 minus institutional charges of $1900 leaves $900). The institution has earned the same 41% of the $1900 it kept.

Step 2.The unearned percentage is 59% (100% - 41%=59%). This is the percentage of federal funds that must be returned to the Title IV programs. The total to be repaid to the Title IV programs is $1652 (Total Federal aid is $2800 times 59% equals $1652). The amount of unearned aid, which must be returned by Bellevue University is $1121 ($1900 institutional charges times 59% equals $1121). The amount of unearned aid which must be returned by the student is $531 ($900 refunded to student times 59% equals $531).

Step 3. The institution must return the $1121 to the student loan lender because student loans have the highest priority in the Return of Federal Funds order. The student must repay his or her portion to their student loan lender under the terms and conditions of their promissory note.

Example #2 (16-Week Session)

Student B has total institutional charges of $1900, which include $1619 of tuition and fees and $281 in books and supplies charged at the bookstore. The student enrolled in the Fall Day 16-week session but withdraws from all classes after attending for 30 days. The 16-week session is 111 calendar days long. The student received a student loan for $2000 and was awarded a $800 Federal Pell Grant.

Step 1.The student has earned 27% (30 days/111 days = 27%) of the financial aid that he/she already received. The amount of aid the student received was $900 (Total aid was $2800 minus institutional charges of $1900 leaves $900). The institution has earned the same 27% of the $1900 it kept.

Step 2.The unearned percentage is 73% (100% - 27% = 73%). This is the percentage of federal funds that must be returned to the Title IV programs. The total to be repaid to the Title IV programs is $2044 (Total Federal aid is $2800 times 73% equals $2044). The amount of unearned aid, which must be returned by Bellevue University is $1387 ($1900 institutional charges times 73% equals $1387). The amount of unearned aid which must be returned by the student is $620 ($900 refunded to student times 73% equals $657).

Step 3. The institution must return the $1387 to the student loan lender because student loans have the highest priority in the Return of Federal Funds order. The student must repay $613 to their student loan lender under the terms and conditions of their promissory note and $22 to the Federal Pell Grant (the actual amount owed to the Pell Grant is $44 but in this process the student is forgiven 50% of the amount owed for the Pell Grant). The Pell Grant funds must be repaid to the program within 45 days or arrangements for repayment have to made with the Department of Education. If this is not done the student is placed in overpayment status and is not eligible for further Federal funds.

Withdrawal or Dropping Classes

Sometimes a student finds it necessary to withdraw/drop from the university before the end of a term. If a student drops a class or totally withdraws, he/she may cease to be eligible for financial aid or for a refund. A portion of the financial aid will be recovered and refunded to the appropriate federal program. Federal Regulations may require you, the student, to repay part or all of the grant money you were given under the return of Title IV funds rule. Students are encouraged to seek solutions to academic problems by utilizing the advising resources available though Student Services. When considering withdrawal from the University, students should consult with their instructors and advisors to determine if this is the best course of action. Withdrawals could impact student accounts, financial aid, tuition assistance and Veteran Benefits status, thus, students are encouraged to consult with their financial aid counselor or student account representative prior to withdrawal. Briefly, a student's withdrawal date is: the date the student began the institution's withdrawal process or officially notified the institution of intent to withdraw; or the midpoint of the period of enrollment for a student who leaves without notifying the institution; or the student's last date of attendance at a documented academically-related activity. Ceasing to attend class does not constitute an official withdrawal. See How to Withdraw.

How to Withdraw

Step 1: Complete a Drop Form

To withdraw from a class, you must complete a drop form or notify a faculty or staff member of the University to complete the form on your behalf. You should be specific as to the class or classes from which you are withdrawing. Any of the following methods may be used to notify the University of your intent to withdraw:

• In person at the Registrar's Registration window
• By telephone
• By fax
• By mail
• By email (electronic mail)
• On the website by going through B.R.U.I.N
• Verbally

Step 2: Submit Form to Registrar's Office

You or the faculty or staff member who completed the form on your behalf must submit the completed withdrawal form to the registrar's office.

Step 3: Student Account (Refund/Credit/Obligation)

The amount of credit to be refunded or obligation to be paid by the student will be determined by the tuition credit/refund policy in effect at the time of the request for withdrawal.

Step 4: Responsibility for Withdrawal

You are responsible for making sure the withdrawal process is completed. If you do not personally complete the withdrawal form, ask for verification of the withdrawal.

Step 5: Grade/Transcript

If you officially withdraw from a course(s) during the withdrawal period, you will receive a grade of "W" for the course(s). Official and unofficial transcripts will show all withdrawal activity including the course name(s) and the "W" grade(s).