Return To Title IV for Students Receiving Refunds
A calculation is made for all financial aid recipients to determine whether a student who completely withdraws during a term has "earned" the monies disbursed. A student "earns" his/her aid based on the period of time they remain enrolled. During the first 60% of the term a student "earns" student aid funds in direct proportion to the length of time he/she remains enrolled. Specific percentages by date is published in each term's OSCAR. Beyond the 60% point all aid for the term is considered earned.
A weekly roster will be generated by the Office of the Registrar that identifies students who have completely withdrawn from the institution. The Registrar's office will verify the date of withdrawal.
The percentage of the period that the student remained enrolled is derived by dividing the number of days the student attended by the number of days in the term. The withdrawal date is:
- The date the student notified the institution of intent to withdraw (initiation of withdrawal process) or
- The midpoint of the term for a student who leaves without notifying the institution of their intent to withdraw.
The responsibility to repay unearned aid is shared by the institution and the student in proportion to the aid each is assumed to possess. Georgia Tech will use the Return of Financial Aid - Refund Policy worksheet to determine the amount the student and/or the institution must refund to the appropriate programs. The Office of Scholarships and Financial Aid and the Bursar's Office will work cooperatively to verify the accuracy of each refund calculation.
Institution's Return of Funds
Once the institution's portion of the return of funds has been calculated the OSFA will reduce the student's original financial aid award and return the funds within 45 (forty-five) days to the appropriate program(s) in the order specific in this policy. If this creates a "charge" on the student's account in the Bursar's office, the Bursar will notify the student of the obligation. The student will be responsible for paying the debt to the Bursar immediately. The student will not be allowed to register, receive an official transcript, and/or receive future financial aid until the debt has been paid in full.
Student's Return of Funds
Once the student's portion of the return of funds has been calculated, the Bursar's Office will notify the student of the amount he/she must repay. The student may select one of the following repayment options:
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The student may pay Georgia Tech the full amount of his/her debt and Georgia Tech will return the funds to the appropriate programs within 45 days, or
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The student may contact the U.S. Department of Education to establish a repayment plan.
The student will remain eligible for Title IV funds for 45 days from the date the institution sends a notice to the student of the overpayment. To continue eligibility past 45 days, the student must pay the overpayment in full to Georgia Tech or make satisfactory arrangements to repay with the U.S. Department of Education on the 46th day. The Institution will report the students overpayment to the U.S. Department of Education and if the student must return federal loan funds the student's lender will be notified of the amount owed by the student.
Unearned Title IV aid shall be returned to the following programs in the following order by both the student and the Institute:
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Unsubsidized Stafford Loan
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Subsidized Stafford Loan
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Perkins Loan
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Parent Loan for Undergraduate Students (PLUS)/GradPLUS
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Pell Grant
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Academic Competitiveness Grant
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National SMART Grant
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FSEOG
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HOPE Scholarship
Post-Withdrawal Funds
If the amount disbursed to the student is less than the amount the student earned, the amount maybe considered a post-withdrawal disbursement. Post-withdrawal eligibility can be used to credit outstanding charges on a student's account. Georgia Tech has 30 (thirty) days from the date of the institution determined that the student withdrew, to offer any amount of the post-withdrawal disbursement to the student, (or parent for PLUS). The student (or parent) may accept or decline some or all of the post-withdrawal disbursement that is not credited to the student's account. The student or parent must respond within 14 days from the date that the institution sends the notification to be eligible to receive the post withdrawal disbursement. If the student (or parent) does not respond to the institution's notice, no portion of the post-withdrawal disbursement that is not credited to the student's account may be disbursed.
HOPE Only Refund
If a refund is due and the student received HOPE funds but did not receive federal Title IV funds, then such amounts must be refunded to HOPE. These amounts are refunded by rounding to the nearest dollar and applying the institution's refund policy (See OSCAR/College Catalog) to the student's original HOPE award for tuition and HOPE-approved mandatory fees.
Title IV and HOPE Refund
If in addition to HOPE funds, the student also received federal Title IV funds, then such amounts must be refunded to HOPE, rounded to the nearest dollar. OSFA then determines the amount of the federal Title IV refund as prescribed by the federal "Return of Title IV Funds" policy.
Examples
EXAMPLE 1: Georgia Tech Student withdraws from classes after completing 28.45% of the term.
Financial Aid: $2000 Pell Grant
Percentage of Term Completed: 28.45%
Institutional Charges: $2617 (tuition and fees)
Amount of Title IV Aid Earned: $569.00 (Total Title IV Aid Disbursed
x Percentage Completed)
Refund Due to Student: $744.54 (Institutional Charges x Percentage
Completed)
Title IV Aid to be Returned: $1431 (Total Financial Aid - Financial Aid Earned)
Amount of Unearned Title IV Due from School: $1431
EXAMPLE 2: Georgia Tech Student withdraws from classes after completing 45% of the term.
Financial Aid: $2682 HOPE Scholarship (2248 tuition and 434 mandatory fees)
Percentage of term completed: 45%
Institutional Charges: $2821 (tuition and fees)
Amount of Financial Aid Earned: $1206.90 (Total Aid Disbursed x Percentage Completed)
Refund Due to Student: $1269.45 (Institutional Charges x Percentage Completed)
Financial Aid to be Returned: $1475.10 (Total Aid minus -Financial Aid Earned)
Amount of Unearned Title IV Due from School: $1475.10
EXAMPLE 3: Georgia Tech Student withdraws from classes after completing 28.45% of the term.
Financial Aid: $2750 Subsidized Stafford Loan
Percentage of term completed: 28.45%
Institutional Charges: $2617 (tuition and fees)
Amount of Title IV Aid Earned: $782.36 (Total Title IV Aid Disbursed x Percentage Completed)
Refund Due to Student: $744.54 (Institutional Charges x Percentage Completed)
Title IV Aid to be Returned: $1967.64 (Total Aid minus Financial Aid Earned)
Amount of Unearned Title IV Due from School *$1872.46 (Percentage unearned x Institutional Charges)
Amount of Unearned Title IV Due from Student **$95.18 (Aid to be Returned minus Unearned aid Due from school)
*The Institution will return this portion of aid to the appropriate source in which the aid was received and the student will be responsible for paying the Institute.
**Loan amounts due from students are returned in accordance with the terms of the promissory note. Notification to the holder of the loan of the student's withdrawal date will be sent.
This website last updated on 03/24/08