Federal Refund Rule (Return of Title IV Funds)Federal Refund Rule (Return of Title IV Funds) jeff Mon, 09/30/2019 - 17:02
Withdrawal refund policy for student financial aid funds will be in compliance with regulations for Return of Funds of Title IV awards (Requirements of 34 CFR 668.22). The Department of Education mandates that unearned federal financial aid funds are returned to the specific program if a student withdraws from all coursework in a semester. The amount of the refund is determined by the days of the semester that the student was in attendance versus the remaining days (after withdrawal) until the semester ends.
Any unearned Title IV aid must be returned to the Federal government within 45 days of the date of determination of your withdrawal. Students are notified by mail of their debt to the Department of Education. This debt must be paid in a timely manner in order for the student to receive future financial aid. Contact the Financial Aid Office for more details regarding this policy.
Funds that are returned to the Federal government are used to reduce the outstanding balances in individual federal programs. Financial aid returned by you and/or your parent or the college must be allocated in the following order*:
- Federal Unsubsidized Direct Loan
- Federal Subsidized Direct Loan
- Federal Direct Parent Loan (PLUS)
- Federal Pell Grant
*Federal programs that the college does not participate in are not included in the distribution.
Contact the Financial Aid Office for more details regarding this policy.
State and/or Accrediting Agency Refund Rule
The State of Illinois has not established a mandated refunding rule for private colleges.
The Higher Learning Commission, as an accrediting agency, has not established a refund rule.