The law specifies how Alfred University must determine the amount of Title IV program assistance that you earn if you withdraw from school. The Title IV programs that are covered by this law are: Federal Pell Grants, Iraq and Afghanistan Service Grants, TEACH Grants, Stafford (Federal Direct) Loans, PLUS loans and Federal Supplemental Educational Opportunity Grants (FSEOGs).
When you withdraw during the semester, the amount of Title IV program assistance that you have earned up to that point is determined by a specific formula. If you received (or Alfred University or parents received on your behalf) assistance less than the amount that you earned, you may be able to receive those additional funds. If you received more assistance than you earned, the excess funds must be returned by the school and/or you. Title IV funds are returned to the programs from which they originated, in the following order, up to the net amount disbursed from each source:
- Unsubsidized Direct Stafford loans (other than PLUS loans)
- Subsidized Direct Stafford loans
- Federal PLUS loans
- Direct PLUS loans
- Federal Pell Grants for which a return is required
- Federal Supplemental Education Opportunity Grants (FSEOG) for which a return is required
- Federal TEACH Grants for which a return is required
- Iraq and Afghanistan Service Grants for which a return is required
The amount of assistance that you have earned is determined on a pro rata basis. For example, if you completed 30% of a semester or period of enrollment, you earn 30%of the assistance you were originally scheduled to receive. Once you have completed more than 60% of the semester or period of enrollment, you earn all the assistance that you were scheduled to receive for that period.
If you did not receive all of the funds that you earned, you may be due a Post-withdrawal disbursement. If your Post-withdrawal disbursement includes loan funds, Alfred University must get your permission before it can disburse them. You may choose to decline some or all of the loan funds so that you don’t incur additional debt. Alfred University may automatically use all or a portion of your Post-withdrawal disbursement of grant funds for tuition, fees, and housing and meal charges (as contracted with the school). Alfred University needs your permission to use the Post-withdrawal grant disbursement for all other school charges. If you do not give your permission, you will be offered the funds. However, it may be in your best interest to allow Alfred University to keep the funds to reduce your debt to Alfred University.
There may be some Title IV funds that you were scheduled to receive that cannot be disbursed to you once you withdraw because of other eligibility requirements.
For example, if you are a first-time, first-year undergraduate student and you have not completed the first 30 days of your program before you withdraw, you will not receive any Direct Loan funds that you would have received had you remained enrolled past the 30th day.
If you receive (or Alfred University or parent receive on your behalf) excess Title IV program funds that must be returned, Alfred University must return a portion of the excess equal to the lesser of:
- your institutional charges multiplied by the unearned percentage of your funds, or
- the entire amount of excess funds. Alfred University must return this amount even if it didn’t keep this amount of your Title IV program funds. If Alfred University is not required to return all of the excess funds, you must return the remaining amount.
Any loan funds that you must return, you (or your parent for a PLUS Loan) repay in accordance with the terms of the promissory note. That is, you make scheduled payments to the holder of the loan over a period of time.
Any amount of unearned grant funds that you must return is called an overpayment. The maximum amount of a grant overpayment that you must repay is half of the grant funds you received or were scheduled to receive. You do not have to repay a grant overpayment if the original amount of the overpayment is $50 or less. You must make arrangements with Alfred University or the Department of Education to return the unearned grant funds.
The requirements for Title IV program funds when you withdraw are separate from Alfred University‘s refund policy. Therefore, you may still owe funds to Alfred University to cover unpaid institutional charges. Alfred University may also charge you for any Title IV program funds that the school was required to return.
If you have questions about your Title IV program funds, you can contact the Alfred University Office of Student Financial Aid (607-871-2159) or call the Federal Student Aid information Center at 1-800-4-FEDAID (1-800-433-3243). TTY users may call
1-800-730-8913. Information is also available on Student Aid website.