It is important that you consider very carefully the consequences of withdrawing from your classes.
Refund Policy for Return to Title IV
Under the Higher Education Amendment regulation called Return of Title IV Funds, all students receiving Title IV federal grant or loan assistance who withdraw from the institution in the first 60% of the term are subject to the Return of Title IV Fund policy. This regulation affects the calculation of aid to be returned as well as repayment procedures. The percentage of aid earned by a Title IV student is determined by calculating the percentage of the period that the student completed. If the student completes up to 60% of the term, the percentage of aid earned equals the percentage of the completed period. A portion of the Title IV funds (Pell Grant, SEOG, Direct Subsidized Loan and Direct Unsubsidized Loan) awarded to the student may be returned. The calculation of the return of these funds may result in the student owing a balance to Cheyney University and/or the Department of Education. It is the student’s responsibility to officially withdraw from all classes. If the student completes 60.01% or more, the student earns 100% of aid.
Students who are no longer attending at least six credit hours at the time loan funds are scheduled to be disbursed are not eligible to receive those funds. The loan will be canceled and all loan funds returned to the Department of Education.
The Financial Aid Office is required by federal statute to recalculate federal financial aid eligibility for students who withdraw, drop out, are dismissed, or take a leave of absence prior to completing 60% of a payment period or term. ALL Title IV financial aid programs must be recalculated in these situations.
If a student leaves Cheyney University prior to completing 60% of a payment period or term, the financial aid office recalculates eligibility for Title IV funds. Recalculation is based on the percentage of aid earned using the following Federal Return of Title IV funds formula:
Percentage of payment period or term completed = the number of days completed up to the withdrawal date divided by the total days in the payment period or term. (Any break of five days or more is not counted as part of the days in the term.) This percentage is also the percentage of aid earned.
Funds are returned to the appropriate federal programs based on the percentage of unearned aid using the following formula: Aid to be returned = (100% of the aid that could be disbursed minus the percentage of earned aid) multiplied by the total amount of aid that could have been disbursed during the payment period or term.
If a student earned less aid than was disbursed, the institution and/or the student may be required to return a portion of the funds. Keep in mind that when Title IV funds are returned, the student borrower may owe a debit balance to the institution.
If a student earned more aid than was disbursed to him/her, the institution would owe the student a post-withdrawal disbursement which must be paid within 120 days of the student's withdrawal.
The institution must return the amount of Title IV funds for which it is responsible no later than 45 days after the date of the determination of the date of the student's withdrawal.
Refunds are allocated in the following order:
- Unsubsidized Federal Direct Loans
- Subsidized Federal Direct Loans
- Federal Parent (PLUS) Loans
- Federal Pell Grants
- Federal Supplemental Opportunity Grants
- Federal Iraq Afghanistan Grant
If you have any additional questions regarding your financial aid and withdrawing from your classes, please contact the Financial Aid Office.