Return of Title IV Funds
The Federal Return of Title IV Funds policy mandates that students receiving federal aid who officially or unofficially withdraw or receives all non-passing grades (F, U, W, I, IW, NR, NG) from all classes may only keep the financial aid they have "earned" up to the time of withdrawal. State and institutional programs may require similar treatment. Financial aid funds that were disbursed in excess of the amount “earned” must be repaid. Financial aid earned but not yet disbursed will be made available.
What if I don't complete a semester or I receive all Ws, Fs, or a combination of non-passing grades?
For federal financial aid recipients federal law requires the College to perform a Return of Title IV Fund calculation to determine the amount of aid a student earned.
- Withdraws from College, i.e., official withdrawal - if a student enrolls, begins attending, and decides to officially withdraw from all courses during the term the student must notify the Registrar's Office and complete an official withdrawal from classes. NIC calculates the amount of aid "earned" based on the withdrawal date or last date of attendance and the type and amount of Financial Aid received.
- Receives all non-passing final grades, i.e., unofficial withdrawal - If a student receives all non-passing grades (i.e., Ws, Fs, Us, Is, IWs, NRs, and/or NGs) the College is required to determine whether the student completed at least one course. If the last date of attendance for all courses is prior to the end of the semester, a Return of Title IV Funds calculation is required.
- Never Attends Class (or Classes) if a student receives financial aid and does not attend a class or classes the financial aid must be repaid.
- Amount owed of unearned aid - federal regulations define how to calculate the amount of "earned" and "unearned" aid. if NIC must return monies to federal aid programs the student is responsible for repaying NIC.
Return of Title IV Funds
When you officially or unofficially withdraw or receive all Fs or a combination of withdrawals and Fs, Us, Is, IWs, NRs, and/or NGs the Financial Aid Office must calculate the amount of financial aid you have earned prior to withdrawing. Any Title IV aid received in excess of the earned amount is considered unearned. This unearned aid must be returned back to the respective federal aid programs.
Calculating EARNED Financial Aid
The amount of earned financial aid is calculated. The process uses calendar days rather than school days. Earned aid is determined by taking the number of days attended before withdrawing divided by the total number of days in the term (first day of classes until the last day of finals, excluding scheduled breaks of five (5) days or more).
For a student who withdraws after the 60% point of the term 100% of aid is earned.
If a student enrolls in late star courses solely the term start and end dates are based on the earliest start date and the last end date among the courses. If the student satisfactorily completes at least once course, there is no Return of Title IV Fund calculation. If the student stops attending the firs course (or the course with the earliest end date)and is not presently attending other courses, a return of Title IV funds must be completed, unless the student confirms his/her intention to return later in the term to take another course. If the student has all non-passing grades at the end of the term, the Return of Title IV Fund calculation will be based on the earliest last date of attendance.
The process for computing Return of Title IV funds includes:
NIC uses the federal procedure to determine the amount of aid that must be which must be returned by the school and/or the student to Title IV programs. The procedure is:
1. Determine appropriate withdrawal date
2. Determine Amount of Earned Title IV Aid
3. Determine Amount of Unearned Title IV Aid
4. Determine Title IV Aid to be Disbursed
5. Determine Title IV Aid Disbursed
6. Determine Title IV Aid to be Returned
7. Calculate the College’s Responsibility
8. Determine Amount College Returns to federal aid program
9. Determine Student’s Responsibility
10. Determine Amount Student Returns to federal aid program
Financial aid in excess of the amount “earned” is reduced in the following priority:
1. Federal Stafford Unsubsidized Loan
2. Federal Stafford Subsidized Loan
3. Federal Perkins Loan
4. Federal Parent PLUS Loan
5. Federal Pell Grant
6. Federal Academic Competitiveness Grant (ACG)
7. Federal Supplemental Educational Opportunity Grant (SEOG)
8. Federal Pell Grant (PELL)
9. State of Idaho programs
10. Institutional and departmental funds
11. Private financial resources
Calculations are done on a case-by-case basis after the withdrawal date is established.
College Refund of Fees
Based upon the date you withdraw as determined by the Registrar and Student Accounts, you may receive a full or partial refund of your fees. This refund will not impact the Return of Title IV Aid Calculation but will affect the amount of money you may owe back to the College for withdrawing.
Information regarding the actual date of each corresponding refund percentage can be obtained on the Student Accounts Office website under “Refunds” at www.nic.edu/costs.
Future Aid Eligibility
Withdrawing may affect your eligibility to receive financial aid in subsequent terms. Depending upon the type of financial aid you receive, you may be required to resubmit certain applications. Upon withdrawal, you should notify the Financial Aid Office when you plan on returning so that we can make all necessary adjustments to your financial aid awards. Students subject to Satisfactory Academic Progress provisions should meet with a Financial Aid Counselor to discuss ramifications of withdrawing.