Return to Title IV Policy
Due to federal regulations, students who receive federal financial aid and completely or partially withdraw during a trimester will be subject to a recalculation of funds awarded. The outcome of the recalculation is dependent on when the withdrawal is initiated and the type of aid received.
Franklin University is required to review a student’s account and recalculate financial aid eligibility in the following situations:
- A student completely withdraws from all classes during the trimester, or;
- A student never attends any classes during the trimester, or;
- A student does not complete all modules for which he/she has registered during the trimester
Important Note: If you have a credit balance on your account at the time one of these situations occur, all refunds will be held until the recalculation review has been completed.
What is the law?
Per section 668.22 if the Code of Federal Regulations, Title IV federal financial aid eligibility will be reviewed and considered for recalculation when a student withdraws from any of his or her classes within a term that is comprised of modules.
After the recalculation is completed funds will be sent back to the appropriate Title IV agency in the following order: Unsubsidized Federal Direct Loans, Subsidized Federal Direct Loans, Federal PLUS Loans, Federal Pell Grant, Federal SEO Grant, Federal IAS Grant and other grant or loan assistance authorized by Title IV. Federal Work Study funds are not included in the calculation. An institution must return the amount of the Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew.
What is a withdrawal?
It is important to become familiar with the University’s Attendance & Tuition Refund Policy in the Academic Bulletin. The Financial Aid office is responsible for reporting in the calculation the last date of attendance as determined by the institution from its attendance records (§668.22(b)(1)).
PLEASE NOTE: A withdrawal from all or any of your courses could result in a negative effect on your Satisfactory Academic Progress (SAP). Please view the section on Satisfactory Academic Progress for Financial Aid located on this page.
Confirmation of future enrollment will prevent the recalculation process from being initiated. If a student decides that dropping a single course during the term is necessary, but expects to complete all subsequent module courses during the same trimester, they will be given the option to confirm that intention at the time of withdrawal. Without a documented confirmation by the student Franklin University will assume that the student has ceased attendance and will begin the Return of Title IV funds process.
An unofficial withdrawal is an administrative withdrawal when the student stops attending a course. The instructor reports last date attended in the system and a failing Z-grade is assigned. If you never attend or cease attendance in a class and receive a Z grade, your financial aid will be reviewed resulting in either full or partial cancellation of federal funds. If there is any combination of dropped/withdrawn courses, Z grades or No Shows received that result in zero hours of enrollment for a term, your file will be reviewed in conjunction with the Return of Title IV funds calculation procedures.
The date that the Financial Aid Office is notified that the student is no longer enrolled (0hrs) or no longer concurrently enrolled, therefore necessitating a Return of Title IV Funds calculation can be determined by the table below:
|Type of Withdrawal
||Date of Notification
||Date that the student initiated the withdrawal
||Date that the grade was verified by the Registrar's Office
|Community College Alliance
||Date of official confirmation of non-attendance
How is my account affected?
If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, the amount of Title IV grant or loan assistance earned by the student must be determined.
The federal recalculation of aid is determined on a pro-rated basis, taking into consideration the actual number of days that a student is in attendance. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds must be returned. If the amount disbursed to the student is less than the amount the student earned, and for which the student is otherwise eligible, he or she is eligible to receive a post-withdrawal disbursement (PWD) of the earned aid that was not received. You will not be required to return any portion of your federal financial aid if you complete at least 60% of the term (as determined by your last date of attendance reported by your instructor(s)). State regulations and scholarship criteria differ from federal requirements, therefore those funds will be reviewed separately.
If the calculation indicates that the school is required to return funds, the Financial Aid office will return the funds to the appropriate Title IV program. You will then owe any difference as reported on your account. If you fail to repay any outstanding balance owed to the University you will not be permitted to register for any future terms and may also be subject to being dropped from current courses.
Return of Title IV Funds Calculation Example - this example is not indicative of every situation. Each Return of Title IV Funds calculation determination is dependent on individual student circumstances.
Once the recalculation is completed you will receive notification of any action to your account. If the recalculation indicates that you and/or your parent are eligible for a post withdrawal disbursement in the form of loan funds, within 30 days of the date the institution determined you withdrew, you and/or your parent will receive a written notification from the institution that you or your parent are eligible for a post withdrawal disbursement. You and/or your parent are required to return the requested documentation within 14 days from the date of the notice or funds will not be disbursed to your account. Eligible grant funds from a PWD will automatically disburse to your Franklin University account and either be refunded to you or will pay on any remaining balance owed to the University. All conditions listed below are required for a PWD to be considered:
- A valid Institutional Student Information Record (ISIR) with an eligible estimated family contribution;
- Meet the requirements for a late disbursement;
- A student must be previously packaged with federal aid eligibility;
- Award Letter must be received and processed for loan eligibility;
- A completed Master Promissory Note (MPN) must be on file in order to be eligible for loans;
- Loan(s) must have been certified;
- Student and/or parent must accept the eligible loan PWD in writing;
- Student must accept a grant PWD for non-institutional charges in writing;
- Student must have established half-time enrollment (starting courses) for a loan PWD; and
- For Pell Grant funds, the actual hours attended will be used to determine Pell eligibility.
In the instance in which a student owes a federal grant repayment in addition to what Franklin has returned to the federal programs, the student is notified via email that an overpayment exists. Upon notification of the overaward, you will have 45 calendar days to repay this debt back to Franklin University. To review the balance owed, log onto your myFranklin account. If the 45 calendar days have elapsed and the balance remains unpaid to the University, the debt will be referred to the U.S. Department of Education Debt Resolution Services for collection as well an overpayment will be placed on the National Student Loan Data System (NSLDS). For additional information please refer to "overpayments" section.