Calculating the Title IV Return of Unearned Funds

As a general rule, grants do not need to be repaid.  However, a student may have to repay a certain amount if he/she withdraws or is dismissed prior to completing more than 60% of a payment period.  When a student has exhausted all leave according to the attendance policy (see the attendance policy in the Student Handbook or the Student/Consumer Handbook at www.nwtech.edu; obtain a hard copy in the counselor’s office, the asst. superintendent’s office of the central office, or refer to the Satisfactory Progress section in this handbook) and a leave of absence has not been requested (or one has been requested but denied) on the 10th day of non-attendance the student will be unofficially withdrawn upon that day.  The last date of attendance is the date used as the calculation for scheduled hours for the student’s attendance on the Return of Title IV Funds Calculation Worksheet.  The portion of a federal grant that the student is entitled to receive is calculated on a percentage basis by comparing the total number of hours in a payment period to the hours scheduled to complete in the payment period upon the student’s last day of attendance.  For example, if the student completes 30% of the payment period, he/she earns 30% of the assistance that he/she was originally scheduled to receive.  This means that 70% of the scheduled award remains unearned and must be returned to the Department of Education.  Once a student has completed more than 60% of the payment period, he/she has earned all (100%) of the grant money for that pay period.