Federal Title IV aid is earned on a daily basis up to and including the 60% point in the semester; 100% is considered earned after the 60% point of the semester. The percent of Title IV aid “earned” is calculated by dividing the number of calendar days completed by the total number of calendar days in the term. Scheduled breaks of five or more calendar days are excluded from the calculation. The federal formula requires a return of Title IV aid if the student received federal financial assistance in the form of a Pell Grant, Federal Supplemental Educational Opportunity Grant, Federal Direct Student loan or Federal PLUS loan and withdrew on or before completing 60% of the semester.
The Federal “Return of Title IV Funds” formula dictates the amount of Federal Title IV aid that must be returned to the federal government by the school and/or the student. The amount of Title IV Program assistance earned is based on the amount of time the student spent in academic attendance; it has no relationship to the student’s incurred institutional charges. The federal formula is applicable to a student receiving Federal aid, other than Federal Work-Study, if that student withdraws on or before the 60% point in time in the semester.
Students who withdraw or drop from classes prior to completing 60% of the term will have their eligibility for federal aid recalculated based on the percent of the term they completed and may be required to return a portion of the federal funds.
For example, a student who withdraws after completing only 30% of the term will have “earned” only 30% of federal funds received. The remaining 70% must be returned.
If you are thinking about withdrawing from classes prior to completing 60% of the semester, please contact the Financial Aid Office prior to doing so to see how your withdrawal will affect your financial aid eligibility. It is extremely important that all students who receive Title IV financial aid and withdraw or drop all courses during the term be aware of the Return of Title IV Funds Policy for HCU. Students should read the policy online to understand the impact withdraws or drops will have on the aid released to them and on their eligibility status to receive future financial aid.