Financial Aid Withdrawal Policy
What is a Return of Title IV Funds (R2T4)?
Federal regulations require Title IV financial aid funds to be awarded under the assumption that a student will attend the institution for the entire period in which federal assistance was awarded. When a student withdraws from all courses for any reason, including medical withdrawals, he/she may no longer be eligible for the full amount of Title IV funds that he/she was originally scheduled to receive. The return of funds is based upon the premise that students earn their financial aid in proportion to the amount of time in which they are enrolled. A pro-rated schedule is used to determine the amount of federal student aid funds he/she will have earned at the time of the withdrawal. Thus, a student who withdraws in the second week of classes has earned less of his/her financial aid than a student who withdraws in the seventh week. Once 60% of the semester is completed, a student is considered to have earned all of his/her financial aid and will not be required to return any funds.
When is a Return of Title IV Funds required?
If a student’s enrollment status changes for an entire term; (i.e. official withdrawals and administrative withdrawals), the school must recalculate the student’s awards to determine the amount of aid he/she will have earned based on the date of withdrawal.
If a student does not begin attendance in all of his/her classes, the school must recalculate the student’s awards based on the lower enrollment status. For instance, a student registers for a full-time course load (15 credits) but only begins attendance in three classes (9 credits); in this case the student’s awards must be recalculated based on the lower enrollment status (9 credits).
Timeline for a Return of Title IV Funds
Student Financial Services must determine the amount of aid that was earned and how much was unearned; the unearned aid is returned to the U.S. Department of Education by WCSU on your behalf. WCSU is required to recalculate Title IV Funds within 30 days from the date of withdrawal. In the event that funds need to be returned, WCSU is required to return funds within 45 days from the date of withdrawal.
The amount of unearned aid will be returned to the U.S. Department of Education. Due to the fact that the institutional refund policy is different than the Financial Aid Return of Title IV Funds policy, any return of funds may result in a balance due to WCSU. This is posted as a charge to your WCSU student account and must be repaid immediately.
If you did not receive all of the funds that you earned prior to your date of withdrawal, you may be due a Post-withdrawal disbursement. If your Post-withdrawal disbursement includes loan funds, WCSU must get permission before it can disburse them by collecting a Post-withdrawal Disbursement Permission form. You may choose to decline some or all of the loan funds so that you do not incur any additional debt. WCSU may automatically use all or a portion of your Post-withdrawal disbursement grant funds for tuition, fees, and room and board charges (as contracted with the school). WCSU needs your permission to use the Post-withdrawal grant disbursement for all other school charges. If you do not give permission you will be offered the funds. However, it may be in your best interest to allow WCSU to keep the funds to reduce your debt at the school.
When is a Return of Title IV Funds Not Required?
If you withdraw from one or more courses during a semester but remain enrolled in classes, a Return of Title IV Funds is not required. Withdrawing from one or more courses can however affect your Satisfactory Academic Progress and in turn your financial aid eligibility for future semesters.