St. Francis Return of Title IV Federal Financial Aid For Withdrawals

Students are encouraged to contact Financial Aid before withdrawing from classes to understand the complete financial impact of a withdrawal. Many times, a withdrawal can result in a student owing the College and/or federal government financial aid that had already been refunded to the student. Federal laws set forth regulations that govern the treatment and calculation of refunds for recipients of federal financial aid (Title IV aid) when students withdraw from classes. 

The Title IV federal financial aid includes the following programs: 
  • Unsubsidized federal Stafford Loans 
  • Subsidized federal Stafford Loans 
  • Federal PLUS Loans 

For students who begin attendance in classes and then withdraw before they have completed over 60 percent of the payment period, Baker College is required, by regulation, to calculate the amount of earned and unearned Title IV aid. The regulations state that a student is entitled to keep only the portion of the aid earned, and the College/student must return the funds that were not earned to the appropriate program. Note: Students who successfully complete (with a passing grade) a course that is at least 49% of the enrollment period are not considered withdrawn even if they withdraw from future classes within the term.

The calculation steps are as follows:


The withdrawal date is used to calculate the amount of earned and unearned federal aid for the semester. There are two types of withdrawals: 

  • Official withdrawals: 
    • Student-initiated withdrawals; Date the withdrawal was submitted. 
  • Unofficial withdrawals: 
    • College-initiated withdrawals due to faculty request, suspension, expulsion, etc.; Date the withdrawal was requested by the faculty member or other College official. 

Note: Baker College officials may use the last date of academic engagement in place of the withdrawal dates listed above, on a case-by-case basis. 


Divide the number of calendar days completed by the number of calendar days in the enrollment period. (Any scheduled breaks of five days or more are subtracted.) If the percentage is greater than 60, the student has earned 100 percent of Title IV aid. 


Note: The last date of academic engagement (provided by faculty) will be used for students who quit attending classes and receive a failing grade in their latest class session. If the last date of academic engagement is not provided, the midpoint (50%) will be used. 


Multiply the percentage of the enrollment period completed (if less than 60%) by the total Title IV aid disbursed or that could have been disbursed according to late disbursement rules. 


Subtract the amount of earned Title IV aid from the total amount of federal aid disbursed. The difference must be returned to the appropriate Title IV program by the College or by the student. 


a) The College is required to return funds based on the total institutional charges for the payment period multiplied by the percentage of unearned Title IV aid. This could result in the student owing money back to the College that had previously been disbursed as an excess credit to the student during the semester. These funds must be returned within 45 days of determination that the student has withdrawn (officially or unofficially for non-attendance). 

b) The student will be responsible for any balance of unearned Title IV funds that were not required to be returned by the College. 

  • If the student’s portion of the aid to be returned is a loan, the student is not immediately required to repay the loan. The terms of the original loan repayment agreement will apply. 

  • If the student’s portion of aid to be returned is an overpayment of a grant, the student is required to repay only the amount exceeding 50 percent of the total grant for original amounts over $50. The College will notify the student of the amount and the procedures for repayment, if this is required. If the student does not repay the funds, the student is not eligible for federal Title IV funds at any institution until the overpayment is paid. 


The College allocates the return of Title IV funds, and any overpayment funds collected from the student, by reducing or eliminating outstanding balances on the funding source, received by the student for the enrollment period for which he/she was charged. The return of funds is processed within 45 days from the date of determination of withdrawal, in the following order: 
  • Unsubsidized federal Stafford loans 
  • Subsidized federal Stafford Loans 
  • Federal PLUS Loans 


Post-withdrawal disbursements: If the calculation results in earned funds that have not been paid to the student account, a post-withdrawal disbursement may be calculated. If student loans are included in the aid that has not yet been paid, the student will have the option to decline the loan funds so he/she does not incur additional debt. A post-withdrawal disbursement of loan funds is not an option for first-time/first-year borrowers who withdrew during the first 30 days of enrollment because loans cannot be disbursed. The College may use all, or a portion of, grant funds eligible for a post-withdrawal disbursement toward tuition, fees, and room and board charges without student permission. If the student has any other charges, the student must give permission to use the grant funds. 


NOTE: The federal regulations governing Title IV aid refunds are separate from the College’s refund policy for tuition and charges. Withdrawing from classes may also impact satisfactory academic progress.

Example of a Return of Title IV Financial Aid Funds Calculation

Withdrawal Official Notice
Week 3
Institutional Charges
Loans (Total Title IV Aid)
Refund to Student
Account Balance
Withdrawal Calculations
Tuition Refund
Adjustment for Title IV
Balance Student Owes the College
21 Days of Attendance out of a 84-Day Enrollment Period
Percent Earned
21/84 = 25%
Percent Unearned
100% - 25 = 75%
Amount of Title IV Aid Unearned
$4,000 x 75% = $3,000
The College Must Return LOANS: $2,437

The Class Withdrawal and Refund Policies use the official notice date to determine tuition refund percentage and not the last date of attendance. 

The example does not reflect all the different combinations of refund situations that may exist. More information on Title IV return calculations is available by contacting the Financial Aid Office ( The College reserves the right to amend this procedure to comply with federal regulations.

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Article ID: 153973
Fri 2/24/23 2:24 PM
Fri 3/1/24 5:28 PM

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Submit a question about how your financial aid will be impacted if you withdraw from a class.