Franklin University Return of Title IV Funds 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.
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 on completing 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.
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 cancelation 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.
How is my account affected?
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. 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.
Once the recalculation is completed you will receive notification of any action to your account. If the recalculation indicates that you are eligible for a Post Withdrawal Disbursement (PWD) in the form of loan funds, you are required to submit 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.
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.