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    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
    • Postwithdrawal disbursement
    • Distribution of R2T4 financial aid refund
    • Notification

    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, the we must determine if these funds must be returned to the appropriate financial aid programs.

    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.

    Withdrawal date

    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 amount of federal funds to be returned for a Title IV aid recipient who withdraws or who ceases attendance during a semester. The calculations may result in a reduction of your Title IV loan and grant aid to reflect the percentage of the semester that you attended, if you attended 60 percent or less of the semester. The Return of Title IV calculation is based on the following:

    • The number of days the you attended
    • 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who fails to earn a passing grade in at least one course in the semester shall be considered as having unofficially withdrawn.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., disbursable aid) minus the amount of Title IV aid earned by the student yields the amount of Title IV loan and grant aid that is unearned and that must be returned (688.22(e)).

    Total Title IV disbursable aid − Title IV aid earned = Title IV loan and grant to be returned

    Postwithdrawal disbursement

    A postwithdrawal disbursement of Federal Title IV aid occurs when the amount of Title IV aid earned by the student is greater than the amount of the Title IV aid disbursed for the semester. A student eligible for a postwithdrawal disbursement will receive written notification from the university. Purdue Fort Wayne must make the disbursement as soon as possible but no later than 45 days after the date of the school’s determination that the student withdrew. Students have the right to accept or decline, some or all, of the postwithdrawal disbursement that is being offered. Students are given 14 days from the date of the notification to respond. Students are encouraged to seriously consider whether it is beneficial to accept a postwithdrawal disbursement. If the Title IV disbursement is the result of a Federal Direct Loan or Perkins Loan, it must be repaid under the terms of the appropriate promissory note being completed or previously completed. In addition, any disbursement received from Title IV funds will reduce award eligibility for the corresponding award(s) at Purdue Fort Wayne, or another college attended during the same award year. Any opportunity to keep loan debt at a minimum should be considered.

    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

    Notification

    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 letter from Purdue Fort Wayne in addition to an updated statement of account. This is a federal statutory and regulatory requirement and enforced accordingly. Furthermore, if the student account remains unpaid, Purdue Fort Wayne will send delinquent accounts to a collection agency. Unpaid bills that reach this stage may negatively affect a student's credit rating, and may be subject to additional fees or service charges under state finance law.

    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.

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    260-481-6100