Requirements for Withdrawal and for the Return of Title IV
The Return of Title IV Funds
The return of Title IV Funds Policy applies to any student who receives Title IV funding and withdraws. The withdrawal process is defined as occurring when a student notifies, in written or oral form, the school of his or her intent to withdraw. In addition, the school will use the date the student ceased attendance as the withdraw date. The Return of Title IV formula determines the amount of Title IV funds a student has earned at the time the student ceases attendance and the amount of Title IV funds the student must return.
To determine the amount of aid the student has earned up to the time of withdrawal, the FAO divides the number of calendar days the student has attended classes by the total number of calendar days in the payment period (minus any scheduled breaks of 5 days or more). The resulting percentage is then multiplied by the total federal funds that were disbursed (either to the student's college account or to the student directly by check or direct deposit) for the payment period.
This calculation determines the amount of aid earned by the student that he or she may keep (for example, if the student attended 25% of the term, the student will have earned 25% of the aid disbursed). The unearned amount (total aid disbursed minus the earned amount) must be returned to the federal government by the college and/or the student. The FAO will notify and provide instructions to students who are required to return funds to the government.
Students whose circumstances require that they withdraw from all classes are strongly encouraged to contact the FAO and their academic advisor before doing so. At that time, the consequences of withdrawing from all classes can be explained and clearly illustrated. The FAO’s counselors can provide refund examples and further explain this policy to students and parents.
Post Withdrawal Disbursement (PWD)
A PWD is due when the amount of Title IV aid earned is greater than the amount of Title IV aid disbursed.
If outstanding charges exist on the student’s account, the school may credit the student’s account with all portions of the PWD from grant funds. However, if the student is due a PWD from Title IV loan funds, the school must notify the student/parent and confirm that the loan funds are still required by the student.
Any amount of a PWD that is not credited to the student’s account must be offered to the student within 30 days of the date that the school determined that the student withdrew. The offer must be made in writing and will also notify the student that no PWD will be made if the student does not respond within 14 days of the date the school sent the notification. The notification will also inform the student that they may accept or decline some or all of the PWD that is not credited to the student’s account.
If the student responds within 14 days the PWD funds will be disbursed as soon as possible but no later than 120 days from the date that the school determined that the student withdrew.
If the student responds late (after 14 days have passed but prior to the 120 day deadline) the school may choose to make the PWD at its own discretion depending on the circumstances. The student is reminded that the school has no obligation to make a PWD after the 14-day time frame.
Return of Title IV Funds Distribution Policy
All financial aid funds are disbursed through a third party service. The student’s funds will first reduce any debt owed to GHC and then a refund check will be mailed to the mailing address on file with Admission and Records.
For those students who qualify for Pell Grant funds – the student will have one (1) disbursement per period/term.
The U.S. Department of Education requires that for all first-time loan borrowers a 30-day delay from the start of term be put in place.
Following is the financial aid officer procedures to Confirm Financial Aid Students:
- Log onto Virtual Financial Aid Office website at https://ghnts.vfao.com
- Under the School Management Screen select Student Confirmations
- Locate the individual student that needs to be confirmed and select the confirm button if the student is currently enrolled. If the student is not enrolled select the decline button.
- Once the confirm button is selected, confirm the student package request by entering the program, grade level, estimated start date and expected graduation date.
- If the student is graduating in an upcoming semester, confirm with the Registration department the graduation date and anticipated credits per applicable semester.
- This request will be sent to the Virtual Financial Aid Office which will process the request within 7-10 days.
- Provided that no verification documentation is required, the Virtual Financial Aid Office will then send a request to the Financial Aid Officer requesting confirmation of the students' enrollment status, their current clock hours, and that they are making satisfactory academic progression (SAP).
- The Financial Aid officer will reply to the Virtual Financial Aid Office confirming the enrollment status, current clock hours, and that the student is making satisfactory academic progress.
- Within 3-5 business days, students' financial aid will be drawn by Weber and Associates and allocated to the school.
Return of Title IV Funds will be distributed in the following order:
Funds that are returned to the federal government are used to reimburse the individual federal programs from which the student received the aid. Financial aid returned (by the school and/or the student or parent) must be allocated, in the following order, up to the net amount disbursed from each source:
- Federal Unsubsidized Direct Loan
- Federal Subsidized Direct Loan
- Federal Perkins Loan (N/A)
- Federal Direct PLUS (Parent) Loan or Grad PLUS Loan (N/A)
- Federal Pell Grant
- Academic Competitiveness Grant (ACG) (N/A)
- National Science & Mathematics Access to Retain Talent (SMART) Grant (N/A)
- Federal Supplemental Educational Opportunity Grant (FSEOG) (N/A)
- Other Federal Loan or Grant Assistance (N/A)