Return of Title IV Funds

Revised 8.2.18

Return of Title IV Federal Student Aid –Undergraduate, Graduate and Professional Programs:

Students who receive Title IV funding (Federal Pell Grant, Federal Supplemental Education Opportunity Grant (FSEOG), Federal Direct Loans, PLUS or Perkins Loan) and completely withdraw from the University are subject to the Title IV return of funds calculation, as mandated by the Department of Education. The Title IV refund calculation is different than the University’s refund calculation; therefore, a student who withdraws before completing 60 percent of an enrollment period may owe the University for charges no longer covered by returned federal aid.

Under the Title IV Return of Funds calculation, the amount of Title IV aid a student has earned is determined by the percentage of days enrolled during a semester. This percentage is determined by dividing the number of days enrolled by the number of calendar days in the semester, including weekends and holidays. The student may retain the amount of aid earned. Any aid not earned will be returned to the appropriate programs. Once the attendance percentage has reached 60 percent, all Title IV aid is considered earned.

The date of a student withdrawal is determined by the University as follows:

  • The student began the prescribed official withdrawal process in the Student Success Center;
  • The student otherwise provided the school with official notification of the intent to withdraw; or
  • For “unofficial withdrawals,” the last date of attendance or the last date of participation in a class as determined by faculty.  If no date can be documented then the midpoint of the semester for which Title IV aid was disbursed will be used.   

The federal return of funds policy requires that Title IV funds be returned in the following order:

Unsubsidized Federal Direct Loans
Subsidized Federal Direct Loans
Perkins Loans
Federal Direct PLUS Loans
Federal Pell Grants
Federal SEOG

Return of Title IV Federal Student Aid funds will be completed no later than 45 days after the date of the school’s determination the student withdrew.    

Post-Withdrawal Disbursement

If Title IV Federal Student Aid has been earned by the student but not disbursed prior to withdrawal, the student is entitled to a post-withdrawal disbursement.  If a post-withdrawal disbursement includes loan funds, Manchester University will request the student’s permission (or parent’s for a Direct Parent PLUS Loan) prior to disbursing the loan funds to the student’s account.  A letter will be mailed to the student’s address of record within 30 days of the date of determination the student withdrew, requesting that the student (or parent for a Direct Parent PLUS Loan) provide authorization in writing to disburse the funds.  We ask that you respond within 14 days of receiving the letter to inform us if you want to accept the funding.  If we do not receive a response, we are not required to make the post-withdrawal disbursement.

Payment of Refunds

Refunds are distributed according to the guidelines governing refunds for each source of funds drawn upon to pay educational costs, including any or all Federal Title IV funds. Refunds will be paid directly to the student in all cases except where a Federal Parent PLUS loan has been disbursed to the student account. In the case of Federal Parent PLUS loan funds, the refund will be sent to the parent borrower. The parent may authorize the school (in writing) to transfer the proceeds of a PLUS loan to the student directly or to a bank account in the student’s name.