Financial Aid Refund Policy
Return of Title IV Financial Aid Funds
The Higher Education Amendments of 1998 changed the formula for calculating the amount of aid a student and university can retain when the student totally withdraws from ALL classes. Students who withdraw from all classes prior to completing more than 60 percent of an enrollment term will have their eligibility for aid recalculated based on the percent of the term (semester) completed. For example, a student who withdraws completing only 30 percent of the semester will have “earned” only 30 percent of any Title IV aid received. The University and/or the student must return the remaining 70 percent to the proper aid program. The Rockford University SAS office encourages students to read the following policy carefully. If a student considers withdrawing from all classes PRIOR to completing 60 percent of the semester, they should contact the SAS office to see how their financial aid award will be affected.
The policy applies to all students who withdraw, drop out or are dismissed from Rockford University, and 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: Federal Direct Education Loans (Subsidized and Unsubsidized, PLUS loans), Federal PELL Grants, Federal Supplemental Educational Opportunity Grant (FSEOG), Perkins Loan.
A student’s withdrawal date is the date the student begins the withdrawal process or officially notifies the University of intent to withdraw ORthe midpoint of the term (semester) for a student who leaves without notifying the institution OR the student’s last date of attendance at a documented academically-related activity.
Refunds on institutional charges, including tuition and fees, will be calculated using the refund policy published in the “Financial Information” section of this catalog as determined by the Rockford University Business Office.
Title IV aid is earned on a prorated manner, on a per day basis, up to and including the 60 percent point in the semester. Title IV aid and all other aid is considered to be 100 percent earned after that point in time.
The percentage of Title IV aid earned shall be calculated as follows:
- Number of days completed by student
- Percent of semester completed / Title IV aid earned = Total number of days in semester*
*The total number of calendar days in a semester shall exclude any scheduled breaks of more than five days.
- The percentage of Title IV aid unearned (i.e., to be returned to the appropriate aid program) shall be 100 percent minus the percent earned.
Unearned aid shall be returned first by Rockford University from the student’s account calculated as follows:
- Total institutional charges multiplied by the percent of unearned aid = amount returned to programs.
Unearned Title IV aid shall be returned to the programs in the following order:
- Unsubsidized Direct Loan
- Subsidized Direct Loan
- Federal Perkins Loans
- Federal PLUS Loans
- Federal PELL Grant
- Federal SEOG
Exception: Only program(s) from which a student received funds are entitled to a refund.
When the total amount of unearned aid is greater than the amount returned by Rockford University from the student’s account, the student is responsible for returning unearned aid to the appropriate program as follows:
- Unsubsidized Direct Loan*
- Subsidized Direct Loan
- Federal Perkins Loans
- Federal PLUS Loans*
- Federal PELL Grant**
- Federal SEOG**
*Loan amounts are returned in accordance with the terms of the promissory note signed by the student/parent.
**Amounts to be returned by the student to federal grant programs will receive a 50 percent discount.