Return of Federal Title IV Funds
If a recipient of Federal Title IV aid withdraws, drops out, is dismissed or suspended, or takes a leave of absence during a period of enrollment, Goucher College must calculate the amount of Federal Ttitle IV aid the student earned. Unearned Federal Title IV funds must be returned to the Title IV programs.
At Goucher College's Office of Student Financial Aid, the Director and Assistant Director of Financial Aid calculate the Federal Title IV aid earned for both the undergraduate students and graduate students.
When a student withdraws, drops out, is dismissed or suspended, or takes a leave of absence during a period of enrollment, the institution must determine the withdrawal date and the amount the student earned, which includes the amounts that were or could have been disbursed. Federal work study is not included in the amount of Federal Title IV aid earned. The institution is also responsible for returning unearned funds to Federal Title IV programs. Note that the student may owe a debit balance to the institution when Title IV funds are returned.
A review of all student records will occur at the end of each semester. For those students who receive all F grades, contact will be made with each professor. If the professor reports that the student fulfilled the course requirements and did not meet the standards for a passing grade, it will be determined that the student earned the F grade. If the professor reports that the student stopped attending or otherwise discontinued participation in an academically related activity, it is determined that the grade is an unearned F. Students with all unearned F grades are considered to have unofficially withdrawn from the college and are subject to a Federal Return to Title IV calculations.
The Federal formula requires the return of Title IV aid if the student withdraws, student drops out, is dismissed or suspended, or takes a leave of absence during a period of enrollment and received Federal financial assistance in the form of a Federal Pell Grant, Federal Supplemental Educational Opportunity Grant, Federal TEACH, Federal Perkins Loan, Federal Unsubsidized or Federal Subsidized Stafford loan, or Federal PLUS loan and withdrew on or before completing 60% of the semester. The percentage of Title IV aid to be returned is equal to the number of calendar days the student was enrolled (minus scheduled breaks) divided by the number of calendar days in the semester.
Federal regulations include special rules applicable to programs that are offered in "modules," which are programs with courses that are less than a semester in length, such as Goucher's seven-week courses. If the student drops a seven-week course, but is enrolled in another semester-long course or courses during the term, the student will generally not be considered to have withdrawn from the college and no return of funds calculation will be made. However, if a student drops a seven-week course some adjustment to the Federal Pell grant and campus-based aid may be necessary.
The calculation of earned and unearned Federal Title IV aid is very straightforward. A form titled "Treatment of Title IV Funds When a Student Withdraws from a Credit Hour Program" can be found here.