Repayment of Title IV Federal Financial Aid is the U.S. Department of Education’s Return of Title IV Funds policy. When recipient of Title IV Loans, PLUS Loans, Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), and TEACH Grants) officially or unofficially withdraw from the university during a semester, Oakwood University is required to determine the amount of Title IV aid earned and the must be returned.
The effective date for return Title IV funds is the date the student notifies Oakwood University and completes the official withdrawal form. If a student fails to officially withdraw or provide appropriate notification, Oakwood will calculate the return of Title IV funds using the 50% point of the term.
Note: Students receiving financial aid should consult with the Financial Aid Office prior to withdrawing or changing their course load, as these actions may affect their financial aid eligibility. Withdrawing from courses impacts your completion rate. To remain eligible for financial aid, students must earn at least 67% of all attempted coursework. If you officially withdraw or stop attending all classes, you may be required to repay all or a portion of the financial aid you received for that term.
Although financial aid is credited after the semester’s (or module’s) financial aid census date, students earn Title IV funds as they complete the semester. If a student withdraws prior to completing more than 60% of the semester, a calculation will determine the amount of unearned aid, which must be returned.
Aid is earned based on the percentage of the semester completed. For example, if you complete 30% of the term, you earn 30% of your scheduled financial aid. Once you complete more than 60% of the term, you are considered to have earned 100% of the aid.
If the amount of aid disbursed is greater than the amount earned, the unearned portion must be returned to the Department of Education. The unearned aid portion for the institution and student is determined when the calculation is performed in the PowerFAIDS software. The calculation is completed within 30 days of the effective date of the official withdrawal or 30 days after grades are made available for unofficial withdrawals. Within 45 days, the unearned portion is returned to the respective Title IV program. If the amount disbursed is less than the amount earned, the student may be eligible for a Post-Withdrawal Disbursement (PWD).
Order of Return of Title IV Funds
Federal regulations require that unearned aid be returned in the following order: 1. Federal Direct Unsubsidized Loans
- Federal Direct Unsubsidized Loans
- Federal Direct Subsidized Loans
- Federal Direct Graduate PLUS Loans
- Federal Direct Parent PLUS Loans
- Federal Pell Grants
- Iraq and Afghanistan Service Grants
- Federal Supplemental Educational Opportunity Grants (FSEOG)
- Federal TEACH Grants
You will not be subject to a return of Title IV funds if you meet one of the following criteria:
- You complete all degree or program requirements
- You successfully complete coursework totaling at least 49% of the term (for programs offered in modules)
- You complete coursework that constitutes half-time enrollment (for programs offered in modules)
If you are eligible for a Post-Withdrawal Disbursements (PWD) and it includes loan funds, Oakwood must obtain your permission before disbursement. You may choose to decline some or all loan funds to avoid incurring debt. Grant funds from a PWD may be automatically applied to tuition, fees, and housing charges. Permission is required to apply these funds to any other charges. If you do not provide consent, the funds will be offered directly to you.
Certain Title IV funds may not be disbursed after withdrawal due to federal eligibility requirements. For example, first-time, first-year undergraduate students who withdraw before completing 30 days of their program are ineligible for Direct Loan disbursements.
Oakwood University is required to return the lesser of:
- The portion of unearned funds based on institutional charges, or
- The total amount of unearned funds.
If the university is not required to return all unearned funds, the student may be responsible for the remaining amount. Loan funds must be repaid according to the terms of the promissory note. Repayment typically begins after the grace period and follows a scheduled plan.
If a student must return grant funds, the maximum repayment is 50% of the grant amount received. Overpayments of $50 or less are not required to be repaid. The student must repay the overpayment or make satisfactory arrangements with Oakwood or the U.S. Department of Education. Failure to resolve a Title IV grant overpayment will result in a flag on the student’s National Student Loan Data System (NSLDS) record. This flag will prevent the student from receiving additional federal student aid until the overpayment is resolved. It may also impact eligibility for other financial aid programs, such as state aid programs.
Additionally, any outstanding balance at Oakwood University resulting from the return of institutional funds may impact the student’s ability to register for future terms and request official transcripts or other academic records until the balance is fully resolved.
The Return of Title IV Funds policy is separate from Oakwood University’s institutional refund policy. A student may owe a balance to the university after withdrawal or may be responsible for repaying Title IV funds returned by Oakwood on their behalf.
Refer to the Financial Policies section of this bulletin for more information on the university’s refund policy. For information on the official withdrawal process, see the Withdrawal from the University section under Academic Policies in the Bulletin.
If you have questions about your Title IV program funds, you can contact the Financial Aid Office finaid@oakwood.edu or 256-726-7210.