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The Return of Title IV Funds Policy applies to all students who
have, or could have been, disbursed federal funds. In accordance
with federal regulations, the institution and the student
are required to return unearned portions of Title IV assistance
(federal grants and/or federal student loans). This return
of unearned funds only applies to students who have completely
withdrawn. The return of funds is based upon the percentage
of time the student was at the institution. The percentage
of time completed is determined by dividing the number of
days prior to complete withdrawal by the total days of the
trimester. The earned percentage (rounded) is then subtracted
from 100 percent, which then gives the unearned percentage.
The unearned percentage is then multiplied times the total
disbursal of federal assistance, which calculates the total
funds that need to be returned to the federal government.
This unearned amount is then evaluated by the institution
(Financial Services Office and Accounting) to determine how much
must be returned to the Federal government. If a student
withdraws after 60 percent of the trimester has been completed,
no funds will be returned.
Return of Title IV funds to the Federal government will
be in the following order:
- Unsubsidized Stafford Loan;
- Subsidized Stafford Loan;
- Federal Perkins Loan;
- PLUS Loan;
- Federal PELL Grant; and
- Federal SEOG.
Failure of the student to repay the federal government
could jeopardize the student's eligibility for future
financial assistance at Northwestern and other institutions.
Failure to repay the institution could jeopardize the student's
eligibility to return to the school and/or receive official
academic transcripts.
Unofficial Withdrawal: If the student
does not officially withdraw from classes, and stops attending
all classes, a pro-rated portion of the federal aid received,
based on the documented last day of attendance, must be returned
to the federal aid programs (Return of Title IV Funds
calculation). If the school is unable to document the
last day of attendance, then the university will use the
mid-point of the trimester as the last day of attendance.
Note: Refunds may also be required for State of Minnesota financial
aid programs. Return of Title IV funds calculations will be
done first before Northwestern's Refund Policy.
Contact Student Records
and Financial Services for more information.
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