Sometimes things happen that can prevent a student from completing a semester after classes start. It is our hope at ISU that you will be able to enjoy a full educational growth experience during the school year. But in light of the possibility of an emergency pulling you from your intended studies, you need to be aware of the financial impact a complete withdrawal from the university can cause.

Any aid recipient making a complete withdrawal who received a Federal Pell Grant, SEOG Grant, Subsidized Stafford Loan, Unsubsidized Stafford Loan or a Parent PLUS Loan will be required to pay several hundred dollars back immediately if they drop out of school before 60% of the semester has passed. The federal law requiring this is called the Return of Title IV Aid.

Return of Title IV Aid works like this: If you receive financial aid and drop out of school before the 60% point of a semester, you owe back all the tuition charges covering the balance of the term and possibly an additional grant repayment. So a student who completely withdraws after only 30% of the semester has passed owes approximately 70% of their original tuition charges back to the government immediately. You pay this money to the ISU Office of the Controller who returns proper funds to the federal government on your behalf. (This only applies to complete withdrawals, not partial withdrawals.) On-campus room and board charges can also increase this payback substantially.

You should check with our office prior to making a complete withdrawal to see the impact it will have. You also need to remember that any withdrawal impacts your Satisfactory Academic Progress, which could adversely affect your aid eligibility, so completing the term is always best when possible.

This policy applies to all aid applicants who either were not selected for verification or who have submitted all verification materials needed at the time of withdrawal. The Office of Student Financial Aid must have received a valid set of FAFSA data for this calculation to be required.

Return of Title IV Fund Criteria

The following criteria must be considered based on the type of aid to determine if the student is a Federal Title IV Aid recipient:

Pell Grant	If student is eligible for this funding
SEOG	If student was awarded this aid
Perkins Loan	If student was awarded this aid
Subsidized or Unsubsidized Stafford Loan	If ISU has certified an application
Parent PLUS Loan	If ISU has certified an application

Once the student is determined to be a Title IV recipient, the amount of earned and unearned aid will be determined according to the federal formula. The date the student withdrew determines the amount of repayment required. The university will determine the student’s official withdrawal date by using one of the following methods:

The date the student began the university’s withdrawal process (the date that the student officially notified the Office of Registration and Records of his/her intent to withdraw) OR

· The midpoint of the semester if the student withdraws without notifying the university; OR

· The students’ last date of attendance at an academically related activity as documented by the university.

The percentage of Title IV assistance earned is calculated by:

Number of days completed in the semester / Number of days in the semester = Percentage Earned

The “percentage earned” is applied to the total amount of the Title IV assistance that was disbursed (or legally could have been disbursed) to the student. If the percentage earned is 60 percent or greater, the student is considered to have earned 100 percent of eligibility and no immediate repayment is usually needed.

The amount of Title IV assistance to be returned is the difference between what was disbursed (or could have been disbursed) minus the percent of money earned as of the date of withdrawal.

The student repays as follows:

· The student (or parent in the case of PLUS) must repay any Title IV Aid ISU is required to return to the government source.

· And 50% of any Title IV grant overpayment.

Important Note: ISU will return any unearned funds to the federal source and bill the student for the amount that was returned on the student’s behalf.

Summer Sessions

A student who is enrolled in consecutive intensive classes within a summer session is not considered to have withdrawn from all classes if he/she is still enrolled in one of the intensive classes.

However, a student who withdraws from all of their classes for either summer session could be subject to this policy.

Order of Funds Returned

Unearned funds are returned to the aid programs in the following sequence:

· Federal Unsubsidized Stafford Loan

· Federal Subsidized Stafford Loan

· Federal Perkins Loan

· Federal PLUS Loan

· Federal Pell Grant

· Federal SEOG Grant

Funds must be returned within 30 days after the date of determination.

Post-Withdrawal Disbursements

If it is determined that a student is eligible for Title IV funds that have not been disbursed, grant funds that the student is eligible for will be disbursed first. Federal aid that the student is eligible for will be credited to the student’s account for outstanding charges. If the student has no outstanding charges or if there is a balance due the student after disbursement, ISU will notify the student of his/her eligibility for the loans. The student must respond within 14 days of the date of the notification as to whether they want all, part, or none of the loan(s) offered. If the student fails to respond within 14 days, no loan disbursement will be made.