Refunds and Title IV

//Refunds and Title IV
Refunds and Title IV2016-11-16T13:57:16+00:00

Institutional Withdrawal Policy

  • (Also applies to moving off campus during the semester)

    Students who withdraw will be charged for tuition, room and board, based on the following scale:

    • During the first week of the semester 20%
    • During the second week of the semester 40%
    • During the third week of the semester 60%
    • During the fourth week of the semester 80%

    In situations involving suspension or expulsion of a student, charges for tuition, room and board will be based on the following scale:

    • During the first week of the semester: 40%
    • During the second week of the semester: 60%
    • During the third week of the semester: 80%
    • During the fourth week of the semester: 100%

    The above scale does not apply to fees. Fees are charged at 100%.

    After four weeks of any semester, no adjustments to any charges will be given.

    Title IV aid recipients will have their financial aid prorated if they withdraw within the first 60% of the semester.

Ferrum College Grant Funds Policy

  • Ferrum College Institutional funds (Merit Grants, Ferrum Grants, Ferrum Scholarships, Endowments, etc.) will be prorated based on SCALE 1 as listed above.  (i.e. Students will receive 20% of total Ferrum College funds if they are charged 20% and withdraw in the first week.)Students who are expelled/suspended will receive institutional funds based on SCALE 1.  (i.e. if a student is suspended in the first week, the student will be charged 40% of all costs and only receive 20% of their institutional funds.)

Return of Title IV Funds Policy (Federal Withdrawal Policy)

  • When a student withdraws from coursework before 60% of the semester is completed (regardless of the reason for withdrawal), a Title IV refund is required by federal law. Title IV refund refers to all Title IV Federal funds such as Pell Grants, SEOG Grants, TEACH Grants, Iraq/Afghanistan Service Grants, Perkins Loans, Stafford Loans (Subsidized and Unsubsidized), and PLUS Loans.For example if a student withdraws on day 30 of a semester that is 100 days in length, they essentially would be eligible for 30% of any Title IV federal aid received. (30/100=30%). This percentage is the amount of Title IV aid “earned” by the student.

    Assume that the student received an award of $2775 Pell Grant, $350 SEOG, $750 Perkins, and $1742 in Subsidized Stafford Loan for a total of $5617 in Federal funds for the semester.

Total Federal Funds                                         $5617

Multiplied by percentage earned                    30%

Federal Funds Earned to Date                       $1685.10

Essentially the institution would be required to refund $3931.90 ($5617 – $1685.10) of the students Title IV federal aid since this portion is considered “unearned” by the student. The student would then be responsible for payment of these funds and any other outstanding balance to Ferrum College after all adjustments have been made.

Only aid that is final and disbursed is eligible to be included in the total Title IV and Ferrum Grant aid figure. (i.e if a student fails to sign a promissory note and their Stafford Loan has not yet been disbursed, the student may no longer be eligible for those funds).

Additional Information

A student who earns a grade of “F” or “I” in all classes at the end of the semester is also subject to the Return of Title IV policy. Professors will be e-mailed to verify the last date of attendance in class and the withdrawal calculation will be completed based on the professor’s certification of the last day the student attended the course.

Note: If a student withdraws before census date (4th Friday of class or end of drop/add period) they will lose eligibility for state aid such as the Virginia Tuition Assistance Grant (VTAG), College Scholarship Assistance Program (CSAP), and Higher Education Teacher Assistance Program (HETAP).

Approved by Administrative Council 2012/2013