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For current financial aid recipients, a tuition percentage will be determined based on the return of Title IV funds regulations. This percentage is a result of the percentage of the enrollment period completed by the student, as outlined below.
The Office of Student Financial Aid determines the return of Title IV funds percentage and informs the Office of the Registrar. Institutions are required to determine the percentage of Title IV aid “earned” by the student and to return the unearned portion to the appropriate aid program.
This same percentage is also used to calculate the return of unearned state or institutional financial aid dollars. However, if the Office of the Registrar receives documentation and reduces the percentage charged for tuition, the Title IV percentage used to calculate the return of unearned Title IV aid must remain at the higher rate. The percentage used to calculate the return of state or institutional financial aid dollars will be adjusted to correspond wih the reduced percentage charged for tuition.
The return of funds policy follows these steps.
- Determine the percentage of the enrollment period completed by the student.Days Attended ÷ Days in Enrollment Period =
Percentage Completed
If the calculated percentage exceeds 60%, then the student has “earned” all Title IV aid for the enrollment period.
- Apply the percentage completed to the Title IV aid awarded to determine the student's eligibility for aid prior to the withdrawal. Total Aid Disbursed x Percentage Completed = Earned Aid
- Determine the amount of unearned aid to be returned to the appropriate Title IV aid program.
Total Disbursed Aid
- Earned Aid
= Unearned Aid to be Returned
If the aid already disbursed equals the earned aid, no further action is required. If the aid already disbursed is less than the earned aid, a late disbursement will be made to the student. If the aid already disbursed is greater than the earned aid, the difference must be returned to the appropriate Title IV aid program.
- Distribute the responsibility to return funds between the institution and the student.
If the type of aid that the student is responsible for returning is a loan, then the student is not required to immediately repay the amount as the grace period for the loan, generally six months, is invoked. If the type of aid that the student is responsible for returning is a grant, then the student will incur a charge on the University bill. Federal return of funds regulations require that the student only repay one-half of the grant amount that is unearned.
Any refund or repayment obligation will be clearly outlined for the student in writing and will also appear on their University bill.
- Return the Title IV aid, based on the type of aid disbursed, in the following order:
1. Federal Direct Unsubsidized Stafford Loan
2. Federal Direct (Subsidized) Stafford Loan
3. Federal Perkins Loan
4. Federal Direct PLUS (Parent) Loan
5. Federal Pell Grant
6. Federal SEOG
If the contracted charges are adjusted downward by the Registrar or Housing Office after the withdrawal was finalized, any credit balance will go towards your University bill or be refunded directly to you.
For examples regarding the application of the Return of Title IV Funds policy, the student should call 335-1445 or come to Room 208 Calvin Hall.
The student's grace period for loan repayments for Federal Unsubsidized and Subsidized Stafford Loans, Perkins Loans, and HEAL Loans will begin on the day of the withdrawal from the University. The student should contact the lender if they have questions regarding their grace period or repayment status.
If the student withdraws from the University, their employment under both the Work Study and part-time hourly employment programs will be terminated.
The student's eligibility for future financial aid may change based on their withdrawal from the University and the University of Iowa Reasonable Academic Progress (RAP) Standards.
The RAP Standards require that an undergraduate who enrolls for two terms of an academic school year must complete twenty-two semester hours (twelve semester hours for a graduate student) by the end of an academic school year (fall and spring semesters plus the subsequent summer session). If the student is unable to earn the required semester hours over the academic year due to their withdrawal, they will be placed on RAP probation and remain eligible for financial aid during the probationary term.
If the student withdraws from both fall and spring semesters of an academic school year, they are no longer eligible for financial aid
If the student withdraws during a RAP probation, they will no longer be eligible for financial aid.
If the student wishes to establish future financial aid eligibility, they must file a RAP appeal or complete the necessary hours and GPA requirement of the RAP Standards without financial aid or remain out of school for one year and return as a reenrolling student eligible for aid under the RAP Standards.
RAP appeal forms are available by clicking on the links below or by contacting our office.
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WITHDRAWAL FROM THE UNIVERSITY 
Return of Title IV Funds