Treatment of Title IV Aid When a Student Withdraws
The law specifies how Grand Valley must determine the amount of Title IV program assistance that you earn if you withdraw from school. The Title IV programs that are covered by this law are:
- Federal Pell Grants
- Iraq and Afghanistan Service Grants
- TEACH Grants
- Direct Loans
- Direct PLUS Loans
- Federal Supplemental Educational Opportunity Grants (FSEOGs)
- Federal Perkins Loans
Though your aid is posted to your account at the start of each period, you earn the funds as you complete the period. If you withdraw during your payment period or period of enrollment, the amount of Title IV program assistance that you have earned up to that point is determined by a specific formula. If you received (or Grand Valley or parent received on your behalf) less assistance than the amount that you earned, you may be able to receive those additional funds. If you received more assistance than you earned, the excess funds must be returned by Grand Valley and/or you.
The amount of assistance that you have earned is determined on a pro rata basis. For example, if you completed 30% of your payment period or period of enrollment, you earn 30% of the assistance you were originally scheduled to receive. Once you have completed more than 60% of the payment period or period of enrollment, you earn all the assistance that you were scheduled to receive for that period.
If you did not receive all of the funds that you earned, you may be due a post-withdrawal disbursement. If your post-withdrawal disbursement includes loan funds, Grand Valley must get your permission before it can disburse them. You may choose to decline some or all of the loan funds so that you don’t incur additional debt. Grand Valley may automatically use all or a portion of your post-withdrawal disbursement of grant funds for tuition, fees, and on-campus housing and dining charges. Grand Valley needs your permission to use the post-withdrawal grant disbursement for all other institutional charges. If you do not give your permission, you will be offered the funds. However, it may be in your best interest to allow Grand Valley to keep the funds to reduce your debt to the school.
If you receive (or Grand Valley or parent receive on your behalf) excess Title IV program funds that must be returned, your school must return a portion of the excess equal to the lesser of:
- your institutional charges multiplied by the unearned percentage of your funds, or
- the entire amount of excess funds
For any loan funds that you must return, you (or your parent for a Direct PLUS Loan) repay in accordance with the terms of the promissory note. That is, you make scheduled payments to the holder of the loan over a period of time.
Any amount of unearned grant funds that you must return is called an overpayment. The maximum amount of a grant overpayment that you must repay is half of the grant funds you received or were scheduled to receive. You do not have to repay a grant overpayment if the original amount of the overpayment is $50 or less. You must make arrangements with Grand Valley or the Department of Education to return the unearned grant funds.
The requirements for Title IV program funds when you withdraw are separate from any refund policy that Grand Valley may have. Therefore, you may still owe funds to the school to cover unpaid institutional charges. Grand Valley may also charge you for any Title IV program funds that the school was required to return. For information about Grand Valley's refund policy and to learn how to officially withdraw, please click here.
If you have questions about your Title IV program funds, feel free to contact us. Information is also available on Student Aid on the Web at www.studentaid.ed.gov.