The amount of assistance earned is determined on a pro rata basis. The payment period is the term for which the loan was certified and the percent of attendance is calculated by dividing the number of days attended minus unscheduled leave that are 5 days or more divided by the total number of days in the payment period. For example, if the student completes 30% of the payment period or period of enrolment, the student has earned 30% of the assistance they were originally scheduled to receive, i.e. it is considered that the disbursement has not been fully ‘earned’ and a ‘Return of the Title IV Funds’ must be carried out. Once the student has completed more than 60% of the payment period or period of enrolment, all the assistance that the student was scheduled to receive for that period is considered to have been ‘earned’. If the student did not receive all of the funds that were earned, he or she may be due a post-withdrawal disbursement. If the post-withdrawal disbursement includes loan funds, the student may choose to decline the loan funds so that additional debt is not incurred. UWS will use the R2T4 worksheets as provided by the US Department of Education to determine how much of the loan may be retained and how much must be returned.
The University may automatically use all or a portion of the post-withdrawal disbursement (including loan funds, if the student accepts them) for tuition, fees, and accommodation. For all other University charges, the University needs the student's permission to use the post-withdrawal disbursement. If the student does not give permission the student will not be offered the funds. However, it may be in the student’s best interest to allow the University to keep the funds to reduce the debt at the University.
There are some Title IV funds that students are scheduled to receive that cannot be earned once a student withdraws because of other eligibility requirements. If the student receives (or the University receives on behalf of the student) excess Title IV program funds that must be returned, the University must return a portion of the excess equal to the lesser of:
- The institutional charges multiplied by the unearned percentage of the funds, or
- The entire amount of excess funds.
The University must return this amount even if it didn't keep this amount of the Title IV program funds. If the University is not required to return all of the excess funds, the student must return the remaining amount. Any loan funds that must be returned, the student must repay in accordance with the terms of the promissory note. That is, scheduled payments are made to the holder of the loan over a period of time. Students who have received a refund of their loan proceeds before withdrawing may be required to return part or all of those funds to the lender.
- Title IV funds will be returned in the following order:
- Unsubsidised Federal Direct Loans
- Subsidised Federal Direct Loans
- PLUS Loan Funds
The requirements for Title IV program funds when students withdraw are separate from any refund policy that the University may have. Therefore, the student may still owe funds to the University to cover unpaid institutional charges. The University may also attempt to collect from the student any Title IV program funds that the University was required to return.
Students requesting a period of interruption should notify their School within 5 days. The Interruption date is the date the student completes this process; this date is entered on the University Student Information System. There must be a reasonable expectation that the students will return from the period of absence.
Interruption of Study retains the ‘in-school’ status for 180 days after which students receiving Title IV are are reported as having been withdrawn. This may affect the student’s loans repayment grace period. Details of approved interruption and leave are listed at: https://www.uws.ac.uk/media/4368/uws-authorised-interruption-guidance-notes.pdf
How the earned financial aid is calculated
In determining the amount of loan funds that a student has earned upon withdrawal, UWS will calculate the percentage of the loan period attended. Programs measured in credit-hours (Payment Period (PP)):
# of days in attendance / # of days in the PP = % of Title IV Earned
The treatment of Title IV Funds when a student withdraws from a credit hour programme is calculated using the Return to Title IV Worksheet.
UWS Finance Office will inform withdrawn students in writing of the amount that the student is obliged to return to the US Federal Aid programme, the amount (if any) that needs to be paid to the University by the student and the amount (if any) that is due to be refunded to the student by the University. Unearned Funds are the responsibility of the student and can be repaid under the terms of the Master Promissory Note.
NB Where a student ceases to attend their selected programme but transfers to another programme in the same payment period, they are not considered to have withdrawn and are eligible to receive Title IV funds for which the student was eligible for before ceasing their attendance.