Return of Title IV Funds
The Federal Return of Title IV Funds policy mandates that students who officially or unofficially withdraw or receive all F's or a combination of withdrawals and F's from all classes may only keep the financial aid they have “earned” up to the time of withdrawal. State and institutional programs require similar treatment. Financial aid funds that were disbursed in excess of the amount “earned” must be repaid.
The process
NIC will use the federal policy to determine the amount 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 by Program
9. Determine Student’s Responsibility
10. Determine Amount Student Returns by 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.
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.
Return of Title IV (Return)
When you officially or unofficially withdraw or receive all F's or a combination of withdrawals and F's , 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 programs. This amount is jointly shared by NIC and the student.
Calculating EARNED Financial Aid
The amount of earned financial aid is calculated on a daily basis from the first day of classes. 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 spring break).
For a student who withdraws after the 60% point of the term, there are no unearned funds. The calculation of the Return of Title IV aid only applies to students who withdraw prior to the 60% point of the term. Withdrawal after this point-in-time will not result in any adjustments to your financial aid for the term.
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.