Federal Title IV Refund Policy

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 This return of unearned funds only applies to students who have completely withdrawn.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 Aid 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
  • 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.

Refunds might also be required for State of Minnesota financial aid programs. Calculation of return of Federal Title IV funds will be done before calculation of return of institutional funds.

Unofficial withdrawal

If the student does not officially withdraw from classes, and stops attending all classes, a prorated portion of the federal aid received, based on the documented last day of attendance, must be returned to the federal aid programs. If the school is unable to document the last day of attendance, the university will use the midpoint of the trimester as the last day of attendance.

Important Dates

  • June 30 - 2013-2014 FAFSA and Information Sheet due

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Contact Financial Aid
email: finaid@nwhealth.edu

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