If you withdraw, either officially or unofficially, on or before completing 60 percent of the term, and you have received Title IV federal funds in the form of a Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (SEOG), Teadcher education Assistance for College and Higher Education (TEACH) Grant, Iraq Afghanistan Sevice Grant, Federal Perkins Loan, Federal Direct Loan, or a Federal PLUS Loan, the federal government requires that we review your eligibility for those funds. We are required to apply a federally mandated formula to determine how much of the federal funding was “earned” up to the time of withdrawal. This review and recalculation is called a “Return of Title IV Aid.”
The Title IV funds that were disbursed in excess of the earned amount must be returned to the federal government by the university and/or you. If you received a refund from financial aid, which was to be used for education-related personal expenses or non-university housing expenses, you may be required to return a portion of those funds to the university. This portion represents funds that were intended to pay your education-related expenses through the end of the term. The amount to be returned to the university will be determined by your institutional costs, refunds you might have received for non-university expenses and the funds that must be returned to the government.
The amount to be returned to the federal government will be calculated from the date you officially withdrew from classes or, in the case of an unofficial withdrawal, the last date you were involved in an academically related activity. An unofficial withdrawal is when a student stops attending clasees, but does not withdraw from those classes or notify the university (eventually receiving FX grades).
Determining Aid Earned
To determine the amount of aid you earned up to the time of withdrawal, DePaul's Office of Financial Aid will determine the percentage of the term that you attended. The resulting percentage is then used, along with your institutional costs and total federal funds that you received (funds that were disbursed directly to your university student account and possibly refunded to you) or that you were eligible to receive, to determine the amount of aid that you are allowed to keep.
Any unearned Title IV aid must be returned to the federal government by you or the university. DePaul's Office of Financial Aid will notify you with instructions on how to proceed if you are required to return funds to the government.
Returned Title IV Aid Allocation
Funds that are returned to the federal government are used to reduce the outstanding balances in individual federal programs. Financial aid returned by you and/or your parent or the university must be allocated in the following order:
- Federal Unsubsidized Direct Loan
- Federal Subsidized Direct Loan
- Federal Perkins Loan
- Federal Direct Parent Loan (PLUS)
- Federal Direct Grad Plus
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant (SEOG)
- Federal Teach Grant
- Iraq Afghanistan Service Grant