Return of Title IV Funds Policy

According to Federal Regulation 34 CFR 668.22, when a recipient of Title IV grant or loan  assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date. There are two types of withdrawals: Official and Unofficial.

Official withdrawal dates are determined by the Registrar’s office based on the date the student 
submits their withdrawal.

An unofficial withdrawal occurs when a student receives an “XF” grade for the semester. The XF 
grade means the student did not complete the coursework and quit attending class during the 
semester but did not officially withdraw from the class. The last date of attendance is determined 
by the instructors and reported when they submit grades. If a last day of attendance cannot be 
otherwise determined, the student is assumed to have attended 50% of the enrollment period and 
Return of Title IV Funds is calculated based on that date.

Calculation 1:

  • The Financial Aid Office (FAO) determines the amount of Title IV financial aid that has been disbursed to the student versus the amount of Title IV financial aid that could have been disbursed to the student. In most cases the full amount of aid will have disbursed. In the instance that aid has not been disbursed, the student may be eligible for a post- withdrawal disbursement*.
  • The FAO determines the amount of time the student attended versus the total days of the semester. Breaks of five or more days during the semester are removed from the total days of the semester.  The calculation is represented as a percentage of aid the student has earned. This is multiplied by the amount of Title IV aid disbursed and that could have disbursed. This is the amount of aid the student has earned.
  • The FAO then takes the amount of aid the student has earned and subtracts it from the total aid disbursed for the student. This is the amount of aid the student has not earned.
  • The FAO also determines the amount of institutional charges that the student has incurred during their time of attendance. This amount is multiplied by the percentage of unearned aid and represents the amount of unearned institutional charges.

The school reviews the amount of unearned aid versus the amount of unearned institutional charges, which is done within 30 days from the date the school determined the student withdrew (officially or unofficially). The lesser of the amounts is the aid that is returned. The school has 45 days from the date the school determined the student withdrew (officially or unofficially) to return 
this amount. Aid is return in the following order:

  • Direct Unsubsidized Loan
  • Direct Subsidized Loan
  • Perkins Loan
  • Grad PLUS Loan
  • Parent PLUS Loan
  • Pell Grant
  • Supplemental Educational Opportunity Grant  (FSEOG)
  • TEACH Grant
  • Iraq and Afghanistan Service Grant
  • Other Federal, State, or Institutional Aid

A similar calculation will be done for State aid, and Institutional aid to determine the amount to 
be returned. A return of state and/or institutional funds will never result in a balance owing for 
the student.

Calculation 2:

The Cashier’s Office will calculate the refund of institutional charges due the student per the 
University of Wisconsin refund policy mandated by the State. Financial aid recipients are 
encouraged to contact the Financial Aid Office and the Cashier’s Office to be advised of the impact 
of withdrawing from the university prior to initiating the process.

*Post-withdrawal disbursement (PWD)

If the student did not receive all of the funds that were earned prior to withdrawing, a PWD may be due. Once the Return to Title IV Funds is calculated, the student will be issued a revised award letter indicating the change in aid, including the PWD if appropriate.  PWD grant funds will disburse at the next scheduled disbursement and first apply to any authorized charges at the institution before refunding to the student.  If the PWD includes loan funds, the student must give permission before the loan funds can be disbursed. Students will be notified of post- withdrawal loan disbursement eligibility within 30 days of the date of withdrawaldetermination.