Brief description: Students “earn” Title IV funds by remaining enrolled for the payment period for which they have been paid federal student aid. A student who begins attendance but, before the end of the payment period, withdraws (either by officially completing the school’s withdrawal process or by unofficially dropping out) may lose some of the Title IV funds he or she received or was scheduled to receive. Depending on circumstances, the school and/or the student may be responsible for reimbursing the Title IV programs. The formula by which the amount of aid the student has earned is determined is outlined in law; it is separate from and independent of any institutional refund policy.
Related topics in this Index: Overawards and overpayments
Historical note: Procedures for treating withdrawn students were dramatically changed as a result of the Higher Education Amendments of 1998, enacted October 7, 1998. Previously, the law and attendant regulations controlled refunds of institutional charges and the amount of Title IV funds that could be retained by the institution to cover earned institutional charges. Current law no longer impacts an institution's refund policy; rather, it controls the amount of Title IV aid that remains available to the student, based only on length of time enrolled. The amount of Title IV aid earned by the student is independent of institutional charges. These changes were described when rules were first published in the Federal Register, 11/1/99, p. 59033.
Search or browse the Knowledgebase for answers to regulatory and compliance questions submitted by financial aid administrators.
The Compliance Engine is comprised of two modules: the Self-Evaluation Checklists which allows administrators to evaluate their programs in a centralized, shared online space, and the P&P Builder, a tool designed to assist institutions in the creation and maintenance of a policies and procedures manual. Along with an online space to update and maintain policies and procedures, the P&P Builder includes legislation and regulation associated with compliance with Title IV requirements.
NASFAA U Authorized Events are a comprehensive set of instructional materials for teaching financial aid concepts to groups of individuals. Materials include a study guide, instructor guide and accompanying presentation slides.
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