Title IV Return Process

Order of Distribution

When the Return of Title IV calculation is complete, NCU returns any unearned aid to the following sources, in the following order of distribution, up to the total net amount disbursed from each source:

1. Unsubsidized Stafford Loan
2. Subsidized Stafford Loan
3. PLUS (Graduate Student)
4. PLUS (Parent)
5. Pell Grant

Withdrawal Date

NCU determines when a student ceases to attend the institution. Determination occurs when:

• a student notifies NCU of his intent to withdraw;
• the institution dismisses or administratively withdraws the student;
• the student ceases attending the institution;
• a student fails to return from an approved Leave of Absence (LOA)

When a student fails to return from an approved LOA, the withdrawal date is the last date the student performed an academic-related activity.

Date of Determination (DOD)

For all students who have ceased participating in their course for more than 28 consecutive days, or officially withdrawn from enrollment, the University will record in the Return to Title IV calculation worksheet, the 14th day after the last date the student participated in the course, or the date the student requested to withdraw, for the DOD. For students who do not return from their LOA and do not notify the University, the date of determination is the last date of the student’s LOA. For students on an approved LOA who do provide notification of their intent to not return, the DOD is the date the student notified the University that they would not be returning.  For all students subject to a return, federal funds will be returned within 45 days from the DOD.

When a student ceases attending the institution, the withdrawal date is the last date the student performed an academic-related activity. The date of determination is:

• the date the student notified the University of their intent to withdraw;
• the date the University dismissed or administratively withdraws the student;
• the end date of an approved LOA;
• 14 days after the student’s last date of attendance

The withdrawal process begins on the date of determination.

From the date of determination, NCU makes no further disbursements of Title IV aid and holds any credit balances due the student until the Return of Title IV calculation is completed. NCU returns funds within 45 days of the date of determination. The exception to this rule is if the student or parent (dependent student) is eligible for a post withdrawal disbursement of funds earned but not disbursed.

Calculation for the Return of Title IV Funds

The University performs all Return to Title IV calculations in a manner consistent with the rules and guidelines provided by ED.

Percent of Aid Earned - The percent of Title IV aid funds earned is based on the following formula:

Calendar days completed in the payment period divided by the total calendar days scheduled in the payment period, excluding days when the student was on an approved leave of absence or a regularly scheduled break of five or more consecutive days.

If the result (percentage of aid earned) is greater than 60 percent, then 100 percent of the Title IV aid funds disbursed, or that could have been disbursed, are considered earned, and funds need not be returned to the Title IV federal financial aid programs.

Dollar Amount of Aid Earned - If the Percent of Aid Earned is 60 percent or less, a return to the Title IV aid programs may be required and NCU must determine the dollar amount of aid earned. The amount of Title IV aid funds earned is determined based on the following formula:

Percent of aid earned multiplied by the amount of aid disbursed and any aid that could have been disbursed during the payment period.

Institutional Charges

Institutional charges are used to determine the portion of unearned Title IV aid that the school is responsible for returning. Institutional charges do not affect the amount of Title IV aid a student earns when he or she withdraws  as per Step Three of the calculation. The institutional charges in the calculation are the charges that were initially assessed, or would be assessed, to the student for courses started within the payment period.

Amount to be Returned

A comparison is performed to determine the amount of Title IV aid that must be returned to the federal aid programs. A comparison is made between two calculations and the lesser amount is the amount of unearned Title IV aid that must be returned to the federal student aid programs. These are the two calculations:

1. The amount of Title IV aid earned is subtracted from the Title IV aid disbursed in the payment period. This is the amount of Title IV aid that must be returned.
2. The institutional charges for the payment period are multiplied by the percentage of unearned Title IV aid calculated.

The University notifies the student via email regarding the funds that have been returned on their behalf. The Direct Loan Servicing Centers are informed of the student’s date of withdrawal.

The amount of unearned Title IV funds the University must return when the student completes 60 percent or less of the payment period is determined in the calculation. The amount of Title IV funds returned by the University reduces the student’s outstanding Title IV student loan balance

Post-Withdrawal Disbursement

A post-withdrawal disbursement (PWD) may occur required when the Dollar Amount of Aid Earned is greater than the amount disbursed. The amount for the PWD is determined by this formula:

The Dollar Amount of Aid Earned – (minus) the total Title IV aid disbursed for the payment period.

If the amount is greater than zero, a PWD can be made if all other requirements are met.

The University sends eligible students an offer letter for any amount of a PWD that is not credited to the student’s account within 30 days of the DOD. The offer letter will include:

• Fund source and amount of Title IV aid funds that make up the PWD
• Fund source and amount of Title IV aid funds that have been credited to the student’s account
• An explanation that the student or parent may accept or decline some or all of the PWD that is not credited to the student’s account
• An explanation that informs the student or parent that no PWD will be made if the student or parent does not respond within 14 calendar days of the letter date
• Instructions that the student or parent must submit the response in writing directly to the Student and Financial Services (S&FS) team by either e-mail or fax.

Post-Withdrawal Grant funds are always processed and made available before loan funds. Grant Funds are disbursed directly to the student account within 45 days of the date of determination.

NCU disburses loan funds within 180 calendar days of the DOD. The amount the student is eligible for is determined at the time of the return calculation, and the amount of the Post-Withdrawal Disbursement may be less than the full eligibility amount if the student or parent accepts less than the total amount.

The student, or parent to whom a PLUS loan has been made, must accept the loan PWD offer within 30 days of the date of the offer letter. However, if the student (or parent/borrower on a PLUS loan) returns an accepted offer letter after 14 calendar days but within 180 days of the date of determination, the S&FS team will disburse funds.