Return of Title IV Funds is a federally mandated policy that applies only to students who receive federal financial aid and who withdraw, drop out, are dismissed, or take a Leave of Absence prior to completing 60% of a semester. The Return of Title IV Funds policy does not apply to students who reduce their units and remain enrolled. Return of Title IV Funds will be used to determine how much aid, if any, must be returned to Title IV loan programs. The Title IV funds considered in the policy are the Federal Direct Subsidized Stafford Loan, Federal Direct Unsubsidized Stafford Loan, and the Federal Direct Graduate PLUS Loan. The policy does not apply to the Federal Work-Study program.
The Return of Title IV funds calculation identifies two types of federal aid, earned and unearned. The earned aid is based on a percentage calculated by dividing the number of days the student completed by the number of days in the payment period. A student who remains enrolled beyond the 60% point earns all disbursed (received) and disbursable aid. Disbursable aid includes aid received and the aid that could have been (but was not) disbursed as of the withdrawal date. If earned aid exceeds disbursed aid, a post-withdrawal disbursement may be made. McGeorge will first credit post-withdrawal disbursement not credited to school charges. Within 30 days of determination that the student withdrew, the student will be provided with a written notification of any post-withdrawal funds that are available to the student. No post-withdrawal disbursement will be made if the student does not respond within 14 days of the notification date.
Unearned aid is any disbursed aid that exceeds the amount of Title IV aid the student earned. The unearned aid amount is to be returned to the lender, a responsibility shared by McGeorge School of Law and the student. This may create a balance owed on your Student Account. The student is responsible to pay the amount owing on their account.
McGeorge must return its share of unearned funds no later than 45 days after it determines that the student withdrew. Students must repay their share according to the terms and conditions stated in their promissory note(s). Funds returned to lenders by McGeorge will be distributed first to the Federal Unsubsidized Stafford Loan then to the Federal Subsidized Loan, Federal Perkins Loan and finally to the Federal Graduate PLUS Loan.
This policy is based on 34 CFR, Section 668.22 of Title IV of the Higher Education Act of 1964, as amended. The formula is prescribed in Section 484(b).