Federal regulations require NAU to perform a Return of Title IV Funds calculation for Title IV aid recipients who withdraw on or before 60% of time has elapsed during the period of enrollment for which the student has been charged.

• Students who withdraw prior to completing more than 60% of a semester have not earned 100% of the federal financial aid that was received, and the student and/or the school may be required to return a portion of their federal aid.
• Students who withdraw after the 60% point of the period of a semester have earned 100% of the Title IV funds they were scheduled to receive during the period.

To determine the amount of Title IV aid for which the student is eligible, NAU uses the student’s withdrawal date, the amount of aid the student was awarded, the number of days that comprise the payment period and the number of days completed in the payment period. The calculation is made using the number of days completed divided by the number of days comprising the payment period to determine the percentage earned. The total number of calendar days in a term of enrollment shall exclude any scheduled breaks of more than five days. The percentage earned, subtracted from 100%, will be the percentage of unearned aid that must be returned to the Title IV program in the following order:

1. Direct Unsubsidized Loan
2. Direct Subsidized Loan
3. Federal Parent (PLUS) Loan
4. Federal Pell Grant
5. Federal Supplemental Opportunity Grant (FSEOG)
6. TEACH Grant
7. Other Title IV grant programs for which return of funds is required.

If a student earned less aid than was disbursed, the institution would be required to return a portion of the funds and the student may be required to return a portion of the funds. Students are responsible for any portion of their institutional charges that are left outstanding after Title IV funds are returned. The institution must return the amount of Title IV funds for which it is responsible no later than 45 days after the date of the determination of the student’s withdrawal. If a student earned more aid than was disbursed, the institution would owe the student a post-withdrawal disbursement which must be paid within 120 days of the student’s withdrawal.

If a student has accepted Title IV aid by the date of the withdrawal, but the financial aid has not disbursed, the student may be eligible for a post-withdrawal disbursement. If the amount disbursed to the student is less than the amount the student earned, and for which the student is otherwise eligible, he or she is eligible to receive a post-withdrawal disbursement for the earned aid that was not received. Under these circumstances, a R2T4 calculation must be performed to determine whether the student is eligible for a post-withdrawal disbursement. NAU must make this determination within 30 calendar days of the date of determination of student’s withdrawal.

The following applies:

• A student must have accepted aid by the date of the withdrawal.
• If, before the student’s withdrawal date a loan offer has been accepted, the loan must also have been originated by NAU.
• In all Title IV loan programs, a promissory note must be signed before the school performs the R2T4 calculation for loans to be included in the calculation.
• If the student is eligible for a post-withdrawal disbursement of a loan, NAU must send notification of post-withdrawal disbursement eligibility to students within 30 calendar days of the date of determination of the student’s withdrawal. Students will be given a minimum of 14 calendar days to respond to the post-withdrawal disbursement notice.

• NAU will provide students with the information in this policy.
• NAU will identify students who are affected by this policy and complete the Return of Title IV funds calculation for those students.
• Any Title IV funds required will be returned to the correct Title IV programs within 45 calendar days of the date the official notice of withdrawal was provided.
• If less Title IV aid has disbursed than the student has earned, a post-withdrawal disbursement will be calculated and offered to the student.

• It is the student’s responsibility to drop or withdraw from courses he or she does not plan to attend or complete by the deadline listed in the Academic Calendar. Failure to do so will result in owing a financial obligation to the university.
• Any notification of withdrawal should be in writing and sent to the Registrar’s Office. Students should not assume the university will remove them from a class for non-payment of fees or that the instructor will remove for non-attendance.
• Students should review the Refund Policy for information on receiving a full or prorated refund.
• Students must repay any funds to NAU that were disbursed to the student in which the student was determined to be ineligible, via the R2T4 calculation.
• Remaining unearned Title IV loan funds must be repaid by the student in accordance with the terms of the loans.