Return of Title IV Financial Aid Policy

If you withdraw from school whether officially (you complete the withdrawal form or drop all classes on the web) or unofficially (you stop attending classes) and have been awarded and/or paid Title IV Federal Aid, you are subject to a Return of Title IV Aid calculation. This calculation determines how much aid must be returned to the federal programs in the event of a complete official or unofficial withdrawal prior to completing 60% of the term (see example below).

The calculation determines the amount of federal aid that is considered to be earned and the amount that is to be returned to the Federal programs. State and/or Institutional Aid may also be subject to return based on withdrawal date. The earned/ unearned amounts are calculated based on the percent of the term completed. The length of the term is defined as the first day of all classes through the last day of all classes (not including a break of 5 days or more and finals week).

Students who have been awarded aid that has not disbursed will also be reviewed to determine if they are eligible for a post-withdrawal disbursement. Withdrawn students who have been selected for verification but have not provided the documents necessary for disbursement may be eligible for a post-withdrawal disbursement. Their account will be reviewed and they will be offered a post-withdrawal disbursement if eligible and given 14 - 30 days to return the requested documentation. Students will only be eligible for the percentage of “earned” aid at the time of withdrawal.

A student may be subject to a Return of Title IV Aid calculation if they are enrolled for the entire term and only complete one or more classes that end in the first eight (8) weeks.

Withdrawing or Ceasing to Attend Class

If you withdraw from school “officially” (drop your course online through your ROAR account and emailing withdraw@pierpont.edu) or “unofficially” (stop attending and do no successfully complete ANY course with an A, B, C, or D) before the term is completed, and you receive federal student aid, a Return of Funds Calculation (R2T4) is required to be performed.  This calculation may result in a portion of aid being returned to the U.S. Department of Education.  You may then owe a balance to the college.  Any balance still outstanding 45 days or greater will be turned over to collections.

Withdrawal Example

This example shows what happened when a student withdrew completely on the 21st day of a 108 day semester (70% Tuition refund period). The first table shows how the Return of Title IV calculation applies to this specific student’s situation. Please note that this is only an example; your specific situation may differ. If you are considering withdrawal, we strongly encourage you to consult with your academic advisor and a financial aid counselor prior to taking any official action.

1. Divide number of days attended by number of days in term:
   Calculation: 21 days / 108 days =
   Result: Percentage of term completed 19%
   Greater than 60% - All aid is earned; no further steps
   Less than 60% - Use percent of term completed
2. Subtract percentage completed from 100:
   Calculation: 100 - 19 =
   Result: Percent of term not completed 81%
3. Multiply total federal aid by percent of term not completed:
   Calculation: 5425 x .81 =
   Result: Amount of aid that is unearned $4394.25
4. Multiply total allowable institutional charges by 81% to get amount of unearned aid to be returned by PIERPONT:
   Calculation: Total fees = 2900 x .81 =
   Result: Amount of unearned aid to be returned by
   PIERPONT $2349
   PIERPONT returns: $1750
   Direct Subsidized Loan; $599 Pell Grant
5. Subtract unearned aid to be returned by PIERPONT from total unearned aid:
   Calculation: $4394 - $2349 =
   Result: Amount of unearned aid to be returned by student $2045
   Student returns: $2045 Pell Grant

(All that is left to repay is the amount that PIERPONT had to repay. Student is not required to repay student portion of either grant program since the total in unearned grants is less than 50% of total federal grants.)

The federal regulations regarding Return to Title IV requires the following rules regarding return of federal aid to the programs:

Order of repayment to programs is as follows:

1. Federal Direct Unsubsidized Loans
2. Federal Direct Subsidized Loans
3. Federal Direct PLUS Parent Loan
4. Federal Pell
5. Federal Supplemental Educational Opportunity Grant (FSEOG)

Pierpont returns its portion first; then the student’s portion is returned.

Any loan amounts unearned from the student’s share are not required to be repaid immediately (will be repaid in the normal repayment process).

For grants, only the portion of unearned grants due from the student that exceeds 50% of the total federal grants received is required to be returned

Please keep in mind this repayment policy is applied before the institution’s refund policy. The school’s refund policy may reduce the amount owed to the school by the student for aid returned. It is important to note, a student who withdraws from school could owe federal financial aid as well as repayment back to the West Virginia Higher Education Grant Program, West Virginia Invests Grant Program, and/or Promise Scholarship Program.