The Office of Financial Aid is required by federal statute to recalculate federal financial aid eligibility for students who withdraw, drop out or take a leave of absence prior to completing 60 percent of a payment period or term. The federal Title IV financial aid programs must be recalculated in these situations.
The calculation is made for all federal 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. After the 60% point in the payment period or period of enrollment, a student has earned 100% of the Title IV funds he or she was scheduled to receive during the period. Any aid received in excess of the earned amount is considered unearned. If a student earned less aid than was disbursed, the institution would be required to return a portion of the funds and the student may be required to return a portion of the funds.
This policy also applies to students who receive federal funds and receive all FA grades for ceasing to attend classes and failure to notify the Office of the Registrar. The last day of class attendance will be determined by the Office of the Registrar. Please refer to Withdrawal policy of the university under Academic Regulations.
This policy does not apply to those students who cancel their registration prior to the first day of classes nor does this policy apply to students who drop some but not all of their classes. In these particular cases, the financial aid office may have to recalculate your award based on your revised enrollment status. Please contact the financial aid office for more information.
CALCULATING EARNED AND UNEARNED FINANCIAL AID
The amount of earned financial aid is calculated on a daily basis from the first day of classes. The process uses calendar days rather than business days. Earned aid is determined by taking the number of days attended before withdrawing divided by the total number of days in the term (first day of instruction until the last day of finals). Breaks of at least 5 days are excluded.
For example, if you completed 30% of your payment period or period of enrollment, you earn 30% of the assistance you were originally scheduled to receive; therefore, 70% of the assistance would be considered as unearned. Once you have completed more than 60% of the payment period or period of enrollment, you earn all the assistance that you were scheduled to receive for that period.
CALCULATING THE AMOUNT OF TITLE IV AID TO BE RETURNED
Once the earned and unearned aid percentages are determined, the next step is to calculate the dollar amount of unearned aid that must be returned. The Return amount is determined by multiplying the unearned aid percentage by the total of all Title IV aid received.
The responsibility to repay the unearned Title IV aid is shared by Delaware Valley University and the student. For example, the calculation may require Delaware Valley University to return a portion of federal funds to the Federal Title IV programs. In addition, the student may also be required to return funds based on the calculation.
CALCULATING THE AMOUNT OF TITLE IV AID DUE BY THE SCHOOL
The amount of unearned aid that must be returned by DelVal is a percentage of the institutional charges for the term. The school must return the lesser of –
• the amount of Title IV funds that the student does not earn; or
• the amount of institutional charges that the student incurred for the payment period multiplied by the percentage of funds that was not earned.
Aid will be returned in the following order, up to the total net amount disbursed from each source:
1. Federal Direct Unsubsidized Loans
2. Federal Direct Subsidized Loans
3. Federal Perkins Loans
4. Federal Graduate PLUS Loans
5. Federal Parent (PLUS) Loans
6. Federal Pell Grants
7. Federal Supplemental Opportunity Grant (SEOG)
8. TEACH Grant
9. Iraq Afghanistan Service Grant
Once the institution’s portion of the return of funds has been calculated, the financial aid office will reduce the student’s original financial aid award and return the funds within 45 days to the appropriate program(s). If this creates a balance owed to DelVal, the student will be responsible for repaying the amount to the Office of the Bursar. The student will not be allowed to register, receive an official transcript, and/or receive future financial aid until the balance has been paid in full.
CALCULATING THE AMOUNT OF TITLE IV AID DUE BY THE STUDENT
After the school returns the correct amount of aid, any amount of the total unearned aid that remains becomes the student’s portion of the return. The student portion of the return is calculated by subtracting the amount that the school had to return from the total unearned aid. Depending on the remaining sources of aid after the school return, the student portion of the return is distributed back to the aid program from which it was awarded. Please be aware that if you (the student) are required to return either your entire Direct Loan or a portion thereof, the loan proceeds will be returned based on the terms and conditions of your Master Promissory Note (MPN). You will not be billed for these funds upon withdrawal.
Any amount of unearned grant funds that you (the student) must return is called an overpayment. The grant funds returned by the student are applied in order as indicated below, up to the amount disbursed from that grant program minus any grant funds the school is responsible for returning to that program.
Note that the student is not responsible for returning funds to any program to which the student owes $50.00 or less.
1. Federal Pell Grants
2. Federal Supplemental Opportunity Grant
3. TEACH Grant
4. Iraq Afghanistan Service Grant
Keep in mind that when Title IV funds are returned, the student borrower may owe a debit balance to the institution. If a student earned more aid than was disbursed to him/her, the institution will offer the student a post-withdrawal disbursement via a letter, which, if accepted, must be paid within 180 days of the student’s withdrawal. The student must accept or decline the post withdrawal disbursement within the time frame indicated in the letter.
If you (the student) did not receive all of the funds that you earned, you may be due a Post-withdrawal disbursement. If your Post-withdrawal disbursement includes loan funds, your school must get your permission before it can disburse them. You may choose to decline some or all of the loan funds so that you don’t incur additional debt. Delaware Valley University will automatically use all or a portion of your Post-withdrawal disbursement of grant funds for tuition, fees, and room and board charges (as contracted with the school). In order to use the Post-withdrawal grant disbursement for all other school charges, DelVal will need your permission. If you do not give your permission, you will be offered the funds. Please keep in mind that it may be in your best interest to allow DelVal to keep the funds to reduce your debt incurred.
*PLEASE NOTE* There are some Title IV funds that you were scheduled to receive that cannot be disbursed to you once you withdraw because of other eligibility requirements. For example, if you are a first-time, first-year undergraduate student and you have not completed the first 30 days of your program before you withdraw, you will not receive any Direct Loan funds that you would have received had you remained enrolled past the 30th day.
The requirements for Title IV program funds when you withdraw are separate from any refund policy that Delaware Valley University has. Therefore, it is possible that you (the student) may still owe funds to Delaware Valley University to cover unpaid institutional charges. As mentioned previously, DelVal may also charge you for any Title IV program funds that the school was required to return. For additional information regarding Return of Title IV or DelVal's Refund policy, please contact: The Office of the Bursar at 215.489.2376
There are other refund policies that students must adhere to which include, but are not limited to such as Tuition and Fees, Housing and Meals.