Return of Aid policy
- Return of Title IV Funds
- Withdrawal date
- Title IV Funds calculation
- Unofficial withdrawal—no passing grades
- Request for academic withdrawal
- Determining the amount of unearned aid to be returned
- Distribution of R2T4 financial aid refund
Return of Title IV Funds
Federal regulations require that Purdue Fort Wayne use a Return of Title IV Funds calculation if you are receiving Title IV financial aid (Pell, Perkins, SEOG, and Direct Loans) and discontinue study during a given semester. If you discontinue study (withdraw or do not attend) from all courses in the semester and have previously been awarded these funds,
We are required to perform the calculation within 45 days of the discontinuance of study. The policy statement below is for your information and reference; please call the Office of Financial Aid at 260-481-6820 with questions regarding the effect and changes of your financial aid award if you are discontinuing study at Purdue Fort Wayne.
This is the date that you discontinue studies at Purdue Fort Wayne. For official withdrawals, the withdrawal date will be when you inform Purdue Fort Wayne.
Title IV Funds calculation
This is the federally mandated process by which a school calculates the
- The number of days
- The institutional charges assessed
- The total amount of Title IV aid awarded, accepted, and or disbursed
Furthermore, we—and you—may be required to return any “unearned” federal assistance.
Unofficial withdrawal—no passing grades
Federal financial aid regulations require that any student who fails to earn a passing grade in at least one course in the semester shall be considered as having unofficially withdrawn.
At the end of each semester, Purdue Fort Wayne will review the academic transcripts of federal financial aid recipients to identify students who have no passing grades as a result of nonattendance or unofficial withdrawal. The Return of Title IV calculation will be performed (after the semester has ended and grades are available) using the midpoint of the semester as the unofficial withdrawal date. Based on these calculations, we will be required to return any unearned federal assistance, resulting in a debit or increase to the student account. Students will be notified by email of the Pending Unofficial Withdrawal review, providing they have a valid Purdue Fort Wayne email address. Otherwise, the student will receive notification via US mail.
Request for academic withdrawal
While there is no academic penalty associated with the W grade, there may be financial aid implications. Any student who received federal Title IV financial aid funding (e.g., Pell Grant, Direct Loans, or Perkins Loans) will have their eligibility recalculated in order to determine:
- The amount of financial aid the student is eligible to retain
- The amount of unearned financial aid that must be returned to the US Department of Education
In addition, the calculation will be based on the student’s actual separation date and not necessarily the date the student dropped or resigned all of their courses.
Determining the amount of unearned aid to be returned
The calculated percentage of the semester completed becomes the percentage of the Title IV aid that the student has earned. The total Title IV aid disbursed to the student, or that could have been disbursed to the student (i.e.,
Total Title IV
Distribution of R2T4 financial aid refund
Refunds returned to the US Department of Education on behalf of the student are distributed among the financial aid programs in the following order:
- Unsubsidized Federal Direct Loans
- Subsidized Federal Direct Loans
- Federal Perkins Loans
- Direct Parent Loan for undergraduate students
- Federal Pell Grant
- Academic Competitiveness Grant
- National SMART Grant
- Federal Supplemental Educational Opportunity Grant
- Federal Graduate PLUS Loans for graduate or professional students
Students will receive written notification indicating the type and amount of aid returned to the US Department of Education.
Please note that if the unearned institutional costs are lower than the unearned financial aid, then the student must return the difference. If the amount(s) to be returned by the student is a loan, no immediate action is required and the loan servicer will contact the student regarding repayment in accordance to the terms and conditions outlined in the promissory note. If the school is required to return any unearned aid, Purdue Fort Wayne will reduce or cancel the award(s), debit the student’s account, and return the unearned portion of aid to the US Department of Education. This adjustment may result in a balance due Purdue Fort Wayne. The student will become responsible for the unearned portion of aid that was charged back to the student account. Students will receive notification of this action via
Information is subject to change without notice due to changes in federal, state, and/or institutional rules and regulations. Students must complete a FAFSA every year. Students must be making Satisfactory Academic Progress to continue to receive financial aid.