What are Title IV Funds?
Title IV Funds are federal financial aid grant, work study, and loan funds in the following programs:
- Federal Direct Unsubsidized Loan
- Federal Direct Subsidized Loan
- Federal Perkins Loan
- Federal Graduate Plus Loan
- Federal Parent Plus Loan
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- Iraq and Afghanistan Service Grant
- Teacher Educational Assistance for College and Higher Education (TEACH) Grant
- Federal Work-Study (Federal Work-Study earnings are not affected by Title IV regulations concerning the return of unearned federal financial aid)
The Office of Student Financial Assistance (OSFA) is required by the Higher Education Act of 1965, as amended in 1998, to determine the amount of financial aid that a student “earned” for an academic semester when the student does not complete at least one course within that semester. When the “earned” aid is less than the disbursed aid, the institution and student are responsible for returning the “unearned” disbursed funds to the appropriate agency.
Who Needs to Know?
- Any student who does not complete at least one course within an academic semester for which financial aid is received, or could have been received, will be reviewed for a Return of Title IV Funds calculation. This includes students who drop, officially or unofficially withdraw, are dismissed or take a leave of absence during a semester.
- The U.S. Department of Education (ED) also requires NSU to perform a Return of Title IV Funds calculation for any student enrolled in multiple parts of a term who ceases attendance during the first part of the term, unless the student provides written confirmation of future attendance for the second part of the term courses.
What Students Need to Know About the Return of Title IV Funds
- The Return of Title IV Funds is based on the premise that students “earn” financial aid for each calendar day that they attend classes. For example, if a student attends 32 days of a semester that is 80 calendar days in length, the student will have “earned” 40 percent of his or her aid.
- Students who complete more than 60 percent of the semester are considered to have earned 100 percent of their financial aid.
- The Return of Title IV Funds policy is separate from each college’s refund policy and individual state refund policies. A student who withdraws from the semester may be required to return unearned Title IV financial aid funds and may still owe Nova Southeastern University for institutional charges. Please refer to your program’s student handbook for your colleges’ refund policy.
- Return of Title IV Funds does not apply to federal work-study, scholarships, state grants such as the Florida Resident Access Grant or the Florida Student Assistance Grant, or institutional awards. Please contact the Office of Student Financial Assistance for more information on the consequences of dropping classes if you receive these types of financial aid.
- If a student is required to return Title IV funds as a result of his or her drop, withdrawal, or dismissal, or is eligible for a late disbursement, the student will receive a letter from the Office of Student Financial Assistance along with a copy of the Return of Title IV Funds Calculation. The student should follow the instructions in the letter carefully to repay any funds due or to accept a late disbursement. Students with “unearned” financial aid funds must repay these funds to NSU or set up a grants repayment agreement with NSU’s collections department within 45 days of notification Students who fail to do so will lose eligibility for future Title IV aid until all unearned funds have been returned to the ED. NSU is required to report the overpayment to the ED after the 45-day time frame has elapsed.
- Students who drop or withdraw from one or more of their classes may fail to maintain Satisfactory Academic Progress which may result in ineligibility for financial aid in the future. Please contact the OSFA and speak to a financial aid counselor before dropping a course.
- All nonpassing grades will be reviewed to determine if the student completed the course or ceased attendance prior to the end of the course. If the course was not completed, the student will be considered unofficallly withdrawn and the last date of participation in the class will be used to calculate “earned” financial aid. If the last date of participation is not known, the midpoint of the term will be used to calculate “earned” aid.
- Any student who owes a balance after “unearned” financial aid is returned will have a hold placed on his or her account, which will prevent the student from receiving certain services offered by NSU.
- Students whose financial aid was not disbursed prior to ceasing attendance may be eligible to receive a percentage of their financial aid after they have withdrawn. In order to be eligible for these funds, the student must have completed all requirements and been eligible for the disbursement prior to ceasing attendance.