Return of Title IV Funds
The federal government mandates that if you withdraw either officially or unofficially from all of your classes you may only keep the financial aid you have earned up to the time of withdrawal. If you drop your classes before they are 60% completed, you may be required to repay a portion of your federal aid. If Title IV funds were disbursed in excess of the earned amount they must be returned by Goshen College and/or by you to the federal government. This situation could result in you owing federal aid funds to Goshen College, to the government, or to both. This does not apply to you if you have dropped some of your classes but remained enrolled in others, or have successfully completed at least one class.
When you withdraw from classes 100%, Goshen College must determine the actual amount of federal aid that you earned while you attended your classes. To determine the amount of aid you have earned up to the time of withdrawal, Goshen College will divide the number of calendar days you attended classes by the total number of calendar days in your program of study (less any scheduled breaks of 5 days or more). The resulting percentage is then multiplied by the total federal funds that were disbursed to you for the semester. This calculation determines the amount of aid you earned which you may keep (for example, if you attended 25% of the term, you have earned 25% of the aid disbursed). The unearned amount (total aid disbursed less the earned amount) must be returned to the federal government by Goshen College or by you. Goshen College will notify you if you are required to repay any of your federal funds.
Federal funds that may be affected by a 100% withdrawal are the Federal Pell grant, Federal student loans and Federal SEOG grant. Financial aid returned must be allocated in the following order:
- Federal Unsubsidized Student Loan
- Federal Subsidized Student Loan
- Federal Perkins Loan
- Federal Grad PLUS Loan
- Federal PLUS (Parent) Loan
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- Federal TEACH Grant
- Iraq and Afghanistan Service Grant
A student may be eligible for a post-withdrawal disbursement if, prior to withdrawing, the student earned more federal financial aid than was disbursed. If a student is eligible for a post-withdrawal disbursement for Title IV funds, it will be processed for the student and a refund will be issued within 14 days of the credit balance.
If the post-withdrawal disbursement includes loan funds, Goshen College must get the student’s permission before it can disburse the loan. Students may choose to decline some or all of the loan funds so that s/he does not incur additional debt. A notice will be sent out to the student, and the signed, original document must be returned to the School within 14 days.
Goshen College may automatically use all or a portion of the post-withdrawal disbursement of grant funds for tuition and fees. However, the school needs the student’s permission to use the post-withdrawal grant disbursement for all other school charges. If the student does not give his/her permission, the student will be offered the funds. However, it may be in the student’s best interest to allow the school to keep the funds to reduce the student’s debt at the school.
It is also important to understand that accepting a post-withdrawal disbursement of student loan funds will increase a student’s overall student loan debt that must be repaid under the terms of the Master Promissory Note. Additionally, accepting the disbursement of grant funds will reduce the remaining amount of grant funds available to the student should the student continue his/her education at a later time.
Goshen College must calculate the Return of Title IV Funds within 30 days, and must return the Title IV funds within 45 days.
The full formula for determining the amount of Title IV federal aid that is earned, and how unearned portions are returned to the federal programs is outlined in CFR 668.22
Official Withdrawal Process
It is the student’s responsibility to officially withdraw from classes. To officially withdraw from all classes in a semester, the student should initiate the process by contacting the Coordinator of Retention. Official contacts must also be made with the student financial aid office, the accounting office, the registrar’s office, the academic adviser, and the resident director (if living in the Residence Halls). The date of withdrawal is the date the student notifies the Coordinator of Retention. A student who stops attending classes but has not followed the process above does not constitute an official withdrawal. Students who withdraw from some classes but not all of their classes, must contact their academic adviser and the registrar.
Occurs when a student leaves the school without notice or when all courses in which the student is enrolled are given an F grade due to non- completion of the course. The student’s last date of attendance or participation in any academic activity will be the date used to calculate the Return of Title IV Funds. If the last date of attendance or participation in any academic activity cannot be determined, Goshen College will use the midpoint (50% point) of the semester.
Below there are charts that list the refund dates and percentages for the 2017-18 academic year. From the day of registration through the first week of classes (drop/add period), the student will receive a 100 percent refund on tuition. The refund percentage for the rest of the semester follows a weekly percentage listed in the refund charts below.
If you are unable to print this file, we would be happy to fax or mail you a copy. Send an email to email@example.com or call us at 574-535-7525 specifying your request along with the fax number or mailing address.
Year Round Calendars
Room and board refund rates
Room and board refund rates, following day one, are prorated daily. Refund rates for students enrolled in the May term only are the same as those listed above, but the 100 percent refund rate applies only to days one and two (drop/add period). Students with changes in housing or food-service contracts must contact the resident director, accounting office and dining service. To receive credit for the unused board contract, the student’s ID and any unused munch money must be returned to the dining hall.
All Federal Student Aid funds including disbursements from Pell Grant and Federal Direct Loan programs will be credited to the student’s account for charges including tuition, fees, and books. After a student’s account is paid in full, if a credit balance occurs, the credit balance will be paid to the student as soon as possible but no later than 14 calendar days after the balance is created.
A student may give Goshen College authorization to retain a credit balance in place of delivering the credit balance to the student. Contact the Financial Aid Office or click here to complete an authorization form. If you have authorized Goshen College to retain your credit balance and you decide you want the credit balance refunded to you, please email firstname.lastname@example.org by Tuesday at 4:00pm and the credit balance will be refunded to you by the next Friday.