RADFORD UNIVERSITY
RETURN OF TITLE IV FEDERAL FINANCIAL AID

The policy affects students who completely withdraw from all classes in a semester and who are receiving or are eligible to receive Federal Title IV financial assistance.  It does not apply to students who withdraw from some but not all classes within a semester.  The Federal Title IV programs covered under this policy includes Federal Pell Grant, Federal SEOG, Academic Competitiveness Grant (ACG), National SMART Grant (SMART), Federal Perkins, Federal Stafford, and Federal PLUS for Parents and Graduate Students.

In general, the law assumes that a student “earns” approved (verified) federal financial aid awards in proportion to the number of days in the term prior to the students complete withdrawal.  If a student completely withdraws from school during a term, the school must calculate, according to a specific formula, the portion of the total scheduled financial assistance that the student has earned and is therefore entitled to retain, until the time that the student withdrew.  If a student receives (or the university receives on the students behalf) more assistance than he/she earns, the unearned funds must be returned to the Department of Education or to the Federal Stafford or parents Federal PLUS loan lenders.  If a students charges are less than the amount earned, and a refund is due, the student may be able to receive those additional funds.  Students who have not completed the verification process are ineligible to receive any financial aid.

The portion of the federal grants and loans that the student is entitled to receive is calculated on a percentage basis by comparing the total number of days in the semester to the number of days that the student completed before he/she withdrew.  For example, if a student completes 30% of the semester, he/she earns 30% of the approved federal aid that he/she was originally scheduled to receive.  This means that 70% of the students  scheduled or disbursed aid remains unearned and must be returned to the Federal Programs.  This policy governs the earned and unearned portions of the students Federal Title IV Financial Aid only.  It determines how much, if any, the student and/or the school may need to return.  This policy does not affect the students charges.  The University's Withdrawal Policy will be used to determine the reduction, if any, in the students tuition and fee or room and board charges.  The student is responsible for paying any outstanding charges to the University.

The University Withdrawal Policy is: A student who officially withdraws from the university on or before the census date will not be charged tuition and fees; all room charges less a $200 administrative fee; all board changes (meal plan) less a $200 administrative fee.  After the census date through the last day to withdraw from a course with a grade of "W", a student will be refunded the unused portion of board (meal plan) or the board (meal plan) amount paid less a $200 administrative fee, whichever is less.  After the last day to withdraw from a course with a grade of "W" there will be no refund.

An example would be if a student withdrew Sept. 5 he/she would be charged full tuition, full room and prorated board, but would only be entitled to 13.4% of their federal aid.  The student would be responsible for payment of the remaining tuition, fees, room and board charges.  If the student remained in school until November 30 (beyond the 60% point of the semester) then federal regulations consider the student earning 100% of their federal aid and the student would owe no repayment as a consequence of their withdrawal.

The student’s official withdrawal date will be determined by the university as 1) the date the student began the university’s withdrawal process (the date that the student officially notified the advising center of his/her intent to withdraw); 2) the midpoint of the semester if the student withdraws without notifying the university: or 3) the student’s last date of attendance at an academically-related activity as documented by the university.

If it is determined that a portion of the financial aid received on the student’s behalf is unearned, the University shares with the student the responsibility of returning those funds.

Any grant funds that the student is required to return to the Federal Programs are considered an overpayment.  The student must either repay the amount in full or make satisfactory payment arrangements with the Department of Education to repay the amount. If the student fails to repay, or make payment arrangements, to repay an overpayment the student will lose his/her eligibility to receive future federal financial aid at any institution. 

Refund Policy for State and Institutional Aid

The policy will affect students who completely withdraw from all classes in a semester and who are receiving State or institutional financial assistance.  It does not apply to students who withdraw from some, but not all classes within a semester.  All financial programs are covered under this policy. 

RU Grant, VGAP, State Student Loan, Last Dollar, and VTG funds MUST be reduced to tuition costs only before any further refund is considered.

Funds from the Virginia Teaching Scholarship Loan Program must be returned to this program in full.

Once a student’s return of Title IV aid (see above policy) has been calculated and Title IV aid has been returned or refunded, any remaining money on a student’s account will be credited back to the aid programs from which the student received funds.  If any balance remains after these programs have been credited, the balance will be returned to the student.