Return of Title IV Federal Financial Aid
Return of Title IV Federal Aid for Official and Unofficial Withdrawals Policy
The Federal formula requires a return of Title IV aid if you received Federal assistance in the form of any of the following programs:
- Federal Pell Grant
- Federal Teacher Education Assistance for College and Higher Education (TEACH) Grant
- Federal Supplemental Education Opportunity Grant (SEOG)
- Federal Stafford Direct Loan (Subsidized and/or Unsubsidized)
- Federal Direct Parent Loan for Undergraduate Students (PLUS) Loan
- Federal Direct Graduate PLUS Loan
- Iraq and Afghanistan Service Grant
- Other Federal Title IV assistance
and withdrew on or before completing more than 60 percent of the semester or enrollment period (withdrawal exemptions may apply).
The Federal government mandates that if you withdraw from all classes, you may only keep the financial aid you have "earned" up to the time of withdrawal - See Determining Title IV Federal Aid Earned below.
The Title IV funds that were disbursed in excess of the earned amount will be returned to the Federal government by the University.
The amount to be returned to the University will be calculated from the date on which you officially withdrew.
If any funds are remaining after the return of Title IV aid, they will be used for repayment obligations for Minnesota State University, Mankato's funds, State funds and other private sources.
If an unpaid balance(s) exists, all aid sources will be repaid before any funds are returned to you.
Determining Title IV Federal Aid Earned
To determine the amount of aid you earned up to the time of withdrawal, the University will divide the number of calendar days you attended classes by the total number of calendar days in the semester or enrollment period (less any scheduled break of 5 days of more). The resulting percentage is then multiplied by the total Federal funds that were disbursed for the semester or enrollment period. This calculation determines the amount of aid that you are allowed to keep. The unearned amount of aid will be returned to the Federal government by the University. You will receive notification and a bill if there is a balance due.
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 the University must be returned in the following order:
- Unsubsidized Federal Direct Loan,
- Subsidized Federal Direct Loan,
- Federal Direct PLUS Loans (Parent or Graduate),
- Federal Pell Grant,
- Iraq and Afghanistan Service Grant,
- Federal Supplemental Educational Opportunity Grant (SEOG),
- Federal Teacher Education Assistance for College and Higher Education (TEACH) Grant,
- Other Federal Title IV assistance
Return of Non-Title IV Funds
- Refunds of Institutional Funds less the Title IV share are subject to return to State and local aid programs which require a return of funds.
- The funds are returned in accordance to the ratio of the aid program award to the total Non-Title IV Aid package.
