Federal regulations specify how Marietta College must determine the amount of Title IV program assistance that you earn if you withdraw from school. The Title IV programs that are covered by this law are: Federal Pell Grants, Iraq and Afghanistan Service Grants, TEACH Grants, Direct Loans, Direct PLUS Loans, Federal Supplemental Educational Opportunity Grants (FSEOGs), and Federal Perkins Loans.

Though your aid is posted to your account at the start of each period, you earn the funds as you complete the period. If you withdraw during your payment period or period of enrollment, the amount of Title IV program assistance that you have earned up to that point is determined by a specific formula. If you received (or Marietta College or your parent received on your behalf) less assistance than the amount that you earned, you may be able to receive those additional funds. If you received more assistance than you earned, the excess funds must be returned by the school and/or you.

If the College grants a refund, some of the financial aid might be required to be returned to the provider. It is possible to lose all of the financial aid offered for that term. If the financial aid package includes federal financial aid, the College will follow the federal refund policy for federal funds. The Marietta College refund policy will be followed for all non-federal funds. The student may be responsible to repay to the aid provider the difference between what has been earned in financial aid (based on length of enrollment in the term of withdrawal) and what the school has returned to the provider.

According to federal regulations, the amount of federal aid earned is equal to the percentage of the payment term completed. The date on which the Registrar’s Office signs the withdrawal form will be the official date of withdrawal and will determine the amount of any return of Title IV funds. If the date of withdrawal occurs on or before 60% of the term is completed, the percentage earned equals the percentage of the term completed. If the withdrawal date is after the 60% point, the student has earned 100% of federal money. The calculation is done by dividing the number of days the student attended by the number of days in the academic term in which the student was registered.

There are some Title IV funds that you were scheduled to receive that cannot be disbursed to you once you withdraw because of other eligibility requirements. For example, if you are a first-time, first-year undergraduate student and you have not completed the first 30 days of your program before you withdraw, you will not receive any Direct Loan funds that you would have received had you remain enrolled past the 30th day.

Refunds to the following financial aid program accounts will be calculated according to published federal and state regulations. Repayments are credited to accounts and funds must be returned in the following order:

  1. Federal Unsubsidized Direct loans
  2. Federal Subsidized Direct loans
  3. Federal Perkins loans
  4. Federal PLUS loans
  5. Pell Grants
  6. Supplemental Educational Opportunity Grants
  7. Other Federal Title IV aid (excluding work-study)
  8. Other programs as required by the program

Any loan funds that you must return, you (or your parent for a Direct PLUS Loan) repay in accordance with the terms of the promissory note. That is, you make scheduled payments to the holder of the loan over a period of time.

Any amount of unearned grant funds that you must return is called an overpayment. The maximum amount of a grant overpayment that you must repay is half of the grant funds you received or were scheduled to receive. You do not have to repay a grant overpayment if the original amount of the overpayment is $50 or less. You must make arrangements with your school or the Department of Education to return the unearned grant funds.

Financial Aid Withdrawal Time Frame:

Typically it takes approximately two weeks for the Return of Title IV calculation to be completed. All Title IV funds must be returned to the appropriate program account within 45 days of the date the student officially withdraws, or, when it is determined that he student has unofficially withdrawn.

Unofficial withdrawals:

If a student stops attending classes, rather than following the official withdrawal procedure in the Records Office, the student will be subject to the same financial aid consequences addressed above. The grade of F will be assigned by the instructor based on their indication of the date the student stopped attending the course. This will determine the date used to calculate the amount of aid, if any, that was earned.

Post Withdrawal Disbursements:

If you did not receive all of the funds that you earned, you may be due a post-withdrawal disbursement. If your post-withdrawal disbursement includes loan funds, you will be notified in writing to obtain your permission before the funds are disbursed. You may choose to decline some or all of the loan funds so that you don’t incur additional debt. Marietta may automatically use all or a portion of your post-withdrawal disbursement or grant funds for tuition, fees, and room and board charges (as contracted with the school). You will be given a fourteen day time period to respond to the notification. If you fail to respond, the loan will be canceled.

The requirements for Title IV program funds when you withdraw are separate from any refund policy that Marietta College may have. Therefore, you may still owe funds to the school to cover unpaid institutional charges. Marietta College may also charge you for any Title IV program funds that the school was required to return.

Treatment of Title IV Aid When a Student Withdraws

Federal regulations specify how your school must determine the amount of title IV program assistance that you earn if you withdraw from school. The Title IV programs that are covered by this law are: Federal Pell Grants, Iraq and Afghanistan Service Grants, TEACH Grants, Direct Loans, Direct PLUS Loans, Federal Supplemental Educational Opportunity Grants (FSEOGs), and Federal Perkins Loans.

Though your aid is posted to your account at the start of each period, you earn the funds as you complete the period. If you withdraw during your payment period or period of enrollment (your school can define these for you and tell you which one applies), the amount of Title IV program assistance that you have earned up to that point is determined by a specific formula. If you received (or your school or parent received on your behalf) less assistance than the amount that you earned, you may be able to receive those additional funds. If you received more assistance than you earned, the excess funds must be returned by the school and/or you.

The amount of assistance that you have earned is determined on a pro-rated basis. For example, if you completed 30% of your payment period or period of enrollment, you earn 30% of the assistance you were originally scheduled to receive. Once you have completed more than 60% of the payment period or period of enrollment, you earn all the assistance that you were scheduled to receive for that period.

If you did not receive all of the funds that you earned, you may be due a post-withdrawal disbursement. If your post-withdrawal disbursement includes loan funds, your school must get your permission before it can disburse them. You may choose to decline some or all of the loan funds so that you don’t incur additional debt. Your school may automatically use all or a portion of your post-withdrawal disbursement or grant funds for tuition, fees, and room and board charges (as contracted with the school). The school needs your permission to use the post-withdrawal grant disbursement for all other school charges. If you do not give your permission (some schools ask for this when you enroll), you will be offered the funds. However, it may be in your best interest to allow the school to keep the funds to reduce your debt at the school.

There are some Title IV funds that you were scheduled to receive that cannot be disbursed to you once you withdraw because of other eligibility requirements. For example, if you are a first-time, first-year undergraduate student and you have not completed the first 30 days of your program before you withdraw, you will not receive any Direct Loan funds that you would have received had you remain enrolled past the 30th day.

If you receive (or you school or parent receives on your behalf) excess Title IV program funds that must be returned, your school must return a portion of the excess equal to the lesser of:

  1. Your institutional charges multiplied by the unearned percentage of your funds, or
  2. The entire amount of the excess funds.

The school must return this amount even if the school did not keep this amount of your Title IV program funds. If your school is not required to return all of the excess funds, you must return the remaining amount.

Any loan funds that you must return, you (or your parent for a Direct PLUS Loan) repay in accordance with the terms of the promissory note. That is, you make scheduled payments to the holder of the loan over a period of time.

Any amount of unearned grant funds that you must return is called an overpayment. The maximum amount of a grant overpayment that you must repay is half of the grant funds you received or were scheduled to receive. You do not have to repay a grant overpayment if the original amount of the overpayment is $50 or less. You must make arrangements with your school or the Department of Education to return the unearned grant funds.

The requirements for Title IV program funds when you withdraw are separate from any refund policy that you school may have. Therefore, you may still owe funds to the school to cover unpaid institutional charges. Your school may also charge you for any Title IV program funds that the school was required to return. If you don’t already know your school’s refund policy, you should ask your school for a copy. Your school can also provide you with the requirements and procedures for officially withdrawing from school.

If you have questions about your Title IV program funds, you can call the Federal Student Aid Information Center at 1/800-433-3243). TTY users may call 1-800-730-8913. Information is also available on Student Aid on the Web at www.studentaid.ed.gov.

Download a copy of the Treatment of Title IV Aid When a Student Withdraws.