Return of Title IV Funds Policy

The University of Chester will follow the requirements of the Federal Student Aid programme Return of Title IV Funds regulations. The policies stated below will apply to all US Federal Loan Aid recipients when the University is dealing with a student’s Federal Loan funds, and may differ from the normal University procedures.

The University of Chester is required to complete a Return of Title IV funds calculation for US Federal loan recipients who begins attending the institution and withdraws during the course of the academic year.

Federal Aid is “earned” on a daily basis. Should a student withdraw, the institution is responsible for calculating the amount of “unearned” aid and return it to the US Department of Education. Known as Return of Title IV Funds, the policy determines the amount of funds earned by calculating the number of calendar days (up to last attendance or official withdrawal date) divided by the number of calendar days within a term. Please note this excludes scheduled breaks or approved leave of absences.

Withdrawal:

Students wishing to withdraw from the University before completing their studies must complete the appropriate withdrawal process. A copy of the University’s Withdrawal Form is available here  or a paper copy may be collected from the Registry Office in Senate House, Parkgate Road campus. Students wishing to take a leave of absence from their studies will need to complete a Request for an Interruption of Studies. This form is available online or for collection at the Registry Office, Senate House. 

Calculation:

In calculating Return of Title IV funds the Finance Department will use the formulae provided by the US Department of Education. This means that the University will return any funds that the student has not earned on a pro rata basis. For example if a student completes 30% of the payment period, any assistance the University has received over this 30% will be repaid. On this basis any unearned funds that the student has received must be returned in accordance of the terms of the promissory note. All such funds must be returned to the US Department of Education within 45 days of the date when the University determined that a student withdrew from studies or interrupted studies. Students who have questions about their Title IV funds may contact the Federal Student Aid Information Centre.

Title IV funds will be returned in the following order:

• Unsubsidized Federal loans
• Subsidized Federal loans
• PLUS Loan funds

The University operates a year long period of study; divided into three terms. The period of enrolment for all calculations is therefore the term.

Once the student has completed more than 60% of the payment period (term), all the assistance that the student was scheduled to receive for the period is considered to have been earned.

A first-year undergraduate student who is receiving Federal Aid for the first time, who withdraws within the first 30 days of a programme, will be deemed not to have earned any aid. If a student fails to begin attendance at all, all Title IV funds must be returned.

The International Centre, with data from the Finance Department, is responsible for Return of Title IV Funds calculation. The Finance Department are responsible for transferring the funds to the US Department of Education within the expected timescale.

Post-withdrawal Disbursements:

If a student did not receive all the funds that were earned, they may be due a post-withdrawal disbursement. The amount will be calculated using the R2T4 calculation and will be offered as a post withdrawal disbursement.

The International Centre will notify the student in writing of eligibility for a post-withdrawal disbursement within 30 days of the date of the school’s determination of the student’s withdrawal.

• Students and/or parent borrowers will be notified of the types and balances available.
• Students and/or parent borrowers will have the option to accept or decline some or all the funds. A decision is requested within 21 calendar days of notification.
• Student and/or parent borrowers will be made aware of the obligation to repay the loan funds whether they are disbursed to the student account or to the borrower.
• Please note that should the student or parent not respond within the timeframe, the university is not required to make the post-withdrawal disbursement. This decision is final and will be communicated to the student or parent in writing.
• University will make any post-withdrawal disbursement available to the parent or student (in the case of a Parent PLUS loan) within 180 days of the date of determination that the student withdrew.
• Funds can either be credited towards the student’s account or disbursed directly to the student and/or parent.
• The student and/or parent borrower must repay any funds disbursed.

The University may automatically use all or a portion of the post-withdrawal disbursement (if the student accepts it) for tuition fees, and any other charges contracted by the student with the University. The student may choose to decline the loan funds so that additional Federal loan debt is not incurred. However, it may be in the student’s best interest to accept the disbursement and allow the University to retain the funds owed in order to reduce their indebtedness to the University.

If the student received more assistance than was earned, the excess funds must be returned by the University and/or the student. If the student receives (or the university receives on behalf of the student) excess Title IV programme funds that must be returned, the University must return a portion of the excess equal to the lesser of:

The institutional charges multiplied by the unearned percentage of the funds, or the entire amount of excess funds.

Approved Leave of Absence:

Students wishing to take a leave of absence from their studies will need to complete a Request for an Interruption of Studies. This form is available online or for collection at the Registry Office, Senate House. Leave cannot exceed 180 days and students can only have one break every 12 months. Students must resume their academics at the same place they departed from. Loans will not be disbursed during this time and students will not accrue additional charges resulting from the leave.

If the student does not return after 180 days, or leaves outside these limits, the student will be withdrawn and the last date of actual attendance will be used to calculate the ‘earned’ loan amount and the date a student enters repayment. An unapproved leave of absence or consequent withdrawal may impact loan repayment terms and grace period.

Important Information:

Requirements for Title IV programme funds when students withdraw are separate from any refund policy that the University may have. Therefore, the student may still owe funds to the University to cover unpaid institutional charges. The University may also collect from the student any Title IV programme funds owed to the University that it was required to return to the funding source.

A copy of the University’s Withdrawal Form is available here. This form also outlines the University’s Refund Policy.  A copy of this form can also be obtained from the International Centre and Student Programmes. Please return completed Withdrawal Forms to Registry Services, Student Programmes for Processing. Students will be notified via email that their request has been processed. Further communications related to Return of Title IV Funds will also be sent via email from the International Centre.