Return of Title IV Funds and Repayments

Did you change direction?

Although you’re on route to your goal, it isn’t always a straight path. Circumstances change, and if you find it necessary to reduce your course load during a semester due to personal, financial or academic reasons, please let us know. We can determine what implications this might have on your financial assistance.

In order to be eligible for and continue receiving funds from certain financial aid programs, you are required to be enrolled for a minimum number of hours. If you do not let us know before dropping a course, you may incur an unexpected financial obligation to the University. For example, a student who drops below half-time before a loan is fully disbursed is not eligible for any further disbursements in the same semester, even if a balance is due to the University.

Return of Title IV funds policy

If a student withdraws, drops out or is dismissed on or before the 60 percent point in time of the period of enrollment, which is calculated using calendar days, a portion of the Title IV Federal Funds awarded (Pell Grant, FSEOG, Perkins Loan, federal Stafford Loans – subsidized and unsubsidized – and federal PLUS loans) must be returned, according to the Federal Formula for Return of Title IV funds as specified in section 484B of the provisions of the Higher Education Amendments of 1998. Recalculation is based on the percent of “earned aid” using the following formula:

Percent Earned = (Number of days completed up to the withdrawal date) ÷ (Total number of calendar days in term)

Federal aid is returned to the federal government based on the percent of “unearned aid” using the following formula:

(100 Percent – Percent Earned) multiplied by the Amount of Aid Disbursed toward institutional charges

The responsibility of returning “unearned” aid is allocated between St. Mary’s University and the student according to the portion of disbursed aid that could have been disbursed to cover St. Mary’s charges and the portion that could have been disbursed directly to the student once the St. Mary’s charges were covered. St. Mary’s will distribute the “unearned” aid back to the Title IV programs as specified by law. The student will be billed for the amount they owe to the Title IV programs and any amount due to St. Mary’s University resulting from the return of Title IV funds used to cover University charges.