Return to Title IV Funds
FINANCIAL AID RETURN TO TITLE IV FUNDS POLICY
Pace University is required by the Higher Education Act to recalculate the eligibility for federal Title IV aid for students who withdraw, drop out, are dismissed, or take a leave of absence, prior to completing 60% of a semester. Federal Regulations specify how Pace University must calculate the amount of Title IV program assistance that students can earn if they withdraw from Pace.
When a student withdraws during the semester, the amount of Title IV program assistance that a student has earned up to the point of withdrawal is determined on a pro-rata basis. For example, if a student completes 30% of the period of enrollment, the student will earn 30% of the assistance that he or she was originally scheduled to receive. Once the student has completed more than 60% of the period of enrollment, the student has earned all the scheduled assistance for that period.
The Title IV programs that are covered by this law and that are available at Pace University are listed below in the order in which the law specifies they must be returned:
- Unsubsidized Direct Stafford loans (other than PLUS loans).
- Subsidized Direct Stafford loans.
- Federal Perkins Loans.
- Federal Direct PLUS Loans.
- Federal Pell Grants for which a return of funds is required.
- FSEOG (Federal Supplemental Educational Opportunity Grant) for which a return of funds is required.
- Iraq and Afghanistan Service Grant for which a return is required.
If all the funds the student earned were not yet disbursed to the student's account before the student withdrew, the student may be due a post-withdrawal disbursement. If the post-withdrawal disbursement includes grant funds, the Financial Aid office will automatically disburse the portion of these funds required to cover any outstanding tuition, fee, room and board charges at the University.
If the post-withdrawal disbursement includes loan funds, the Financial Aid office will notify the student and provide him or her with the option to accept or decline the loan funds.
If the student responds and gives permission, the Financial Aid office will disburse the loan funds to cover any outstanding tuition, fee, room and board charges at the University. If the student responds and declines permission, the loan funds eligible to be disbursed as a post-withdrawal disbursement will be offered to the student. If the student does not respond in a timely way, the loan funds will be cancelled.
There are some Title IV funds that a student may be scheduled to receive that must be cancelled once the student withdraws because of other eligibility requirements. For example, the 2nd disbursement of a loan may not be disbursed after the student withdraws below half-time (6 credits).
If the excess Title IV funds were disbursed to the student's account and must be returned according to the required Return to Title IV Funds calculation required by law, the Financial Aid office return a portion of the excess equal to the lesser of:
- the student’s institutional charges (tuition, fees, room and board) multiplied by the unearned percentage of the funds, or
- the entire amount of excess funds.
The Financial Aid office must return this amount even the student (or parent) received a refund of some or all of these funds before the student withdrew.
If the University is not required to return all of the excess funds, the student (or parent for PLUS loans) is required to return the remaining amount. Any loan funds that must returned, may be repaid in accordance with the terms of the promissory note. This means that the student (or parent) would not have to do anything special except ensure that required loan payments are made on time. Any amount of unearned grant funds that must be returned would be called an overpayment. The maximum amount of a grant overpayment that the student would have to repay is half of the grant funds the received or was scheduled to receive; but only if the overpayment is more than $50. Students who owe overpayments will be informed by the Financial Aid office.
Students may withdraw from classes via the MyPace Portal or by visiting, calling or writing to the Office of Student Assistance. If a student does not officially drop or withdraw from a course, but stops attending the course prior to completing the coursework, that student is considered to have Unofficially Withdrawn from that course. Students who unofficially withdraw from all courses in a semester will be assumed to have withdrawn at the midpoint (50%) of the term when the Financial Aid office performs the Return to Title VI Funds calculation.
Students should note that all four Summer terms (May, Summer 1, Summer 2 and August) are treated as one Summer semester for financial aid purposes. Student’s who enroll in multiple Summer terms and who withdraw from or fail to begin attendance in a Summer term may be considered to be Withdrawn from the Summer even if the student remains registered for a later summer term. Students in this situation who do intend to attend the later summer term must confirm their intent to attend in writing to the Financial Aid office.
Students should note that the requirements for the treatment of Title IV program funds when a student withdraws are separate from the University’s Refund Policy and from policies that apply to institutional and New York state financial aid programs. Therefore, the student may still owe funds to the school to cover unpaid institutional charges. In addition, reductions in Title IV aid on the student’s account that are required by the Return to Title IV Funds calculation may have to be repaid to the University.
For more information about Pace University’s Tuition Cancellation and Refund & Repayment Policy (covering other types of financial aid and partial withdrawals), please visit the web page here.
Financial Aid recipients who are considering withdrawing from a semester are strongly encouraged to discuss their situation with their advisor to ensure that they are making the best decision for themselves academically. Such students are also encouraged to discuss their plans with a Financial Aid counselor to ensure that they understand the impact of withdrawing on their financial aid. Students who are considering withdrawing and who have borrowed federal Stafford and/or PLUS loans are encouraged to review the Exit Counseling Guide for Federal Student Loan Borrowers.
Students who have withdrawn and who have borrowed federal Stafford and/or PLUS loans are required to complete federal Exit Counseling on the StudentLoans.gov web site within 60 days of withdrawing.