Return of Title IV Funds

 

Washington Adventist University is required by federal statute to recalculate federal financial aid eligibility for students who withdraw, are dismissed, or who take a leave of absence before completing 60 percent of a payment period or term. The federal Title IV financial aid programs must be recalculated in these situations.

If a student leaves the institution before completing 60 percent of a payment period or term, the Student Financial Aid office recalculates eligibility for Title IV funds.

Recalculation is based on the percentage of earned aid using the following Federal Return of Title IV funds formula:

 

  • Percentage of payment period or term completed = the number of days completed up to the withdrawal date divided by the total days in the payment period or term.
  • Any break of five days or more is not counted as part of the days in the term. The percentage is also the percentage of assistance earned. Funds are returned to the appropriate federal program based on the percentage of unearned aid using the following formula: Aid to be returned = 100 percent of the aid that could be disbursed minus the percentage of earned aid, multiplied by the total amount of aid that could have been disbursed during the payment period or term.

If a student earned less aid than was disbursed, the institution would be required to return a portion of the funds, and the student would be required to return a portion of the funds. Keep in mind that when Title IV funds are returned, the student borrower may owe a debit balance to the institution.

If a student earned more aid than was disbursed to him/her, the institution would owe the student a post-withdrawal disbursement, which must be paid within 120 days of the student’s withdrawal.

The institution must return the amount of Title IV funds for which it is responsible no later than 45 days after the date of the determination of the date of the student’s withdrawal.

 

Refunds are allocated in the following order:

  • Unsubsidized Direct Loans
  • Subsidized Direct Loans
  • Federal Parent PLUS Loans
  • Direct PLUS Loans Student
  • Federal Pell Grants for which a return of funds is required
  • Federal Supplemental Opportunity Grants for which a return of funds is required
  • Other assistance under Title IV for which a return of funds is required

Students wanting to withdraw from Washington Adventist University need to complete a Withdrawal Form and submit it to the Office of the Registrar for processing. The form will then be forwarded to the Student Financial Aid office for Title IV refund calculations.

 

Questions?

For more information about financial aid at WAU, email finaid@wau.edu, or call 301.891.4005 or 1-800-835-4212 to speak to a Financial Aid Advisor.

Student Financial Aid

Washington Adventist University
7600 Flower Avenue, Suite 351
Takoma Park, MD 20912
Email: finaid@wau.edu
Phone: 301-891-4005
Toll-Free: 800-835-4212
General Fax: 301.560.5364