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 This return of unearned funds only applies to students who have completely withdrawn.

If you withdraw during the trimester, a calculation of "earned" versus "unearned" federal aid must be determined. This federal policy assumes you earn your aid based on how much time has elapsed in the trimester. If you receive federal financial aid, that aid may be reduced as a result of your withdrawal.

Return of Title IV funds calculations will be done first before Northwestern's Institutional Refund Policy for Tuition.

Steps for the return of Title IV funds

There are three steps that the University must complete to comply with the federal policy:

Step 1. Determine the official or unofficial withdrawal date

The withdrawal date is the date you begin the official withdrawal process. To officially withdraw, visit the Office of Student Affairs and complete required paperwork.

If you fail to withdraw officially, the withdrawal date will become the midpoint of the term, unless the University can document a later date. In certain circumstances, if an earlier date of last academic activity is determined, this date may be used in the calculation of "earned" federal aid.

Step 2. Determine the amount of earned federal aid

The percentage of earned aid is determined by dividing the total number of calendar days enrolled by the total number of calendar days in the term. If you complete 60 percent of the term, you earn all federal financial aid for the term. If you withdraw before completing 60 percent of the term, you "earn" federal funds in direct proportion to the length of time you were enrolled.

Step 3. Return unearned federal funds to the appropriate program(s)

The responsibility to repay unearned aid is shared by the University and the student. The University's share is the lesser of unearned aid or unearned institutional charges. The University's share must be repaid to the federal aid programs in the following order, before the student's share is considered: Unsubsidized Stafford Loan, Subsidized Stafford Loan, Federal Perkins Loan, PLUS Loan, Federal Pell Grant, Federal SEOG.

If you are required to repay a portion of your loan through the student's share calculation, you will not be expected to return those funds immediately, but rather when repayment begins according to the terms and conditions of the promissory note. If your share includes grant funds, federal rules allow the grant to be reduced by 50 percent, you will be responsible for repaying this money back to the Department of Education. If this causes undue hardship, a satisfactory payment arrangement can be made with the University.

Failure to repay

Failure of the student to repay the Federal Government could jeopardize the student’s eligibility for future federal financial assistance. Failure to pay Northwestern Health Sciences University could jeopardize the student’s eligibility to return to the school and/or receive official academic transcripts.

Questions?

If you have questions, contact the Financial Aid Office.

Note: Refunds may also be required for Minnesota financial aid programs.

 

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Contact Financial Aid
email: finaid@nwhealth.edu

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