RETURN OF TITLE IV FUNDS POLICY

The Higher Education Amendments of 1998 changed the formula for calculating the amount of aid a student and school can retain when the student totally withdraws from all classes.  Students who withdraw from all classes prior to completing more than 60% of an enrollment term will have their eligibility for aid recalculated based on the percent of the term completed.  For example, a student who totally withdraws after completing only 30% of the term will have “earned” only 30% of any Title IV aid received.  The school and/or the student must return the remaining 70%.  The Department of Student Financial Assistance encourages you to read this policy carefully.  If you are thinking about withdrawing from all classes PRIOR to completing 60% of the semester, you should contact the Department of Student Financial Assistance to see how your withdrawal will affect your financial aid. 

This policy applies to all students who withdraw, drop out, are expelled from Western Kentucky University, or otherwise fail to complete the period of enrollment for which they were charged, and who receive financial aid from Title IV funds.

The term “Title IV Funds” refers to the Federal financial aid programs authorized under the Higher Education Act of 1965 (as amended) and includes the following programs: Unsubsidized Stafford loans, Subsidized Stafford loans, Federal PLUS loans, Federal Perkins loans, Federal Pell Grants, Federal SEOG grants.

WKU's responsibilities concerning the return of Title IV funds include:

• Providing each student with the information given in this policy
• Identifying students who are affected by this policy and completing the return of Title IV Funds calculation for those students
• Returning any Title IV funds that are due the Title IV programs

• Becoming familiar with the Return of Title IV policy and how complete withdrawal affects eligibility for Title IV aid
• Returning to the Title IV programs any funds that were disbursed directly to the student and which the student was determined to be ineligible for via the Return of Title IV Funds calculation.

The fees, procedures, and policies listed above supersede those published previously and are subject to change at any time.