Title IV Aid When a Student Withdraws
Students receiving Federal Title IV funds who withdraw completely from Molloy, will have their Federal Title IV awards and loans prorated and refunded to the federal programs based upon the number of days in attendance. The amount of assistance that a student has earned is determined on a pro rata basis. For example, if the student has completed 30% of the period of enrollment (or the semester), the assistance earned is 30% of the assistance that the student was scheduled to receive. For any student who attends more than 60% of the semester, the student earns all of the assistance that was scheduled and no Title IV funds must be returned. Students will still be liable for any balance on the cost of their tuition and fees based upon Molloy’s schedule for refunds, regardless of the amount of Federal Title IV funds that have to be returned to the federal programs.
Unofficial withdrawals will be calculated based on the last date of attendance, in order to determine return of federal financial aid awards.
Students, who did not receive all of the funds earned may be due a post-withdrawal disbursement. If the post-withdrawal disbursement includes loan funds, students may choose to decline the loan funds to avoid incurring additional debt. Molloy may automatically use all or a portion of the post-withdrawal disbursement (including loan funds, if the student accepts the funds) for tuition, fees and charges (as contracted with the school).
Some Title IV funds that the student was scheduled to receive cannot be earned once the student withdraws because of eligibility requirements. For example, a first-time, first-year undergraduate student must complete the first 30 days of a program before withdrawing to earn any Direct Loan funds.
Students (or on behalf of student, the school or the student's parent for a PLUS Loan) must return excess or unearned Federal Title IV funds. The school must return a portion of the excess amount equal to either the lesser of the institutional charges multiplied by the unearned percentage of funds or the entire amount of excess funds.
If the school is not required to return all of the excess funds, the student (or the parent for a PLUS Loan) must return the remaining excess amount.
Any amount of unearned grant funds that must be returned are called an overpayment. The amount of a grant overpayment that must be repaid is half of the unearned amount. Arrangements must be made with the college or the Department of Education for the return of unearned grant funds.
Federal Title IV funds are returned in the following order:
- Federal Unsubsidized Direct Loans
- Federal Subsidized Direct Loans
- Federal Perkins Loans
- Federal Plus Direct Loans (for graduate students)
- Federal Plus Direct Loans (for parents)
- Federal Pell
- Academic Competitiveness Grants (ACG)
- National SMART Grants
- Federal Supplemental Educational Opportunity Grants
- Teachers Grant
- Other Title IV Aid Programs
- The student
For questions about the Title IV program funds, students can call the Federal Student Aid Information Center at 1-800-4-FEDAID (1.800.433.3243). TTY users may call 1.800.730.8913. Information is also available on Student Aid on the web at www.studentaid.ed.gov. Molloy's Office of Financial Aid can assist students with questions on the impact to financial aid awards and the consequences of stopping attendance during the term. The last date a student attends is the beginning of the 6 months grace period for loan or in-school deferments before repayments must begin.