Return of Title IV – Unofficial Withdrawal Example
Student was enrolled full-time for courses that spanned the full 16 weeks. The student began attendance in all courses. The original charges for tuition, fees, and books for the term were $2,200. The funds disbursed (credited) to the student account were: $1,732 Federal Direct Subsidized Loan and $2969 Federal Direct Unsubsidized Loan. The credit balance of $2501 ($1,732 + $2969)-$2200) was paid to the student after attendance verification. After the term was completed, it was discovered that the student unofficially withdrew during the term. The student's last date of attendance as reported by his instructors was 35 days into the term.
- There are 113 days in the payment period (or term).
- 35 divided by 113 = .3097. However, because this is an unofficial withdrawal, DMACC is allowed to utilize the midpoint of the payment period to determine the unearned aid percentage, or 50%.
- 100%-50%=50% unearned
- Apply the percentage completed (earned), 50.00 to:
- Title IV (federal) aid disbursed: $4701 times 50% = $2350.50 earned aid
- $4701 minus $2350.50= $2350.50 unearned aid.
- Apply the unearned percentage 50% to:
- Total charges for the term: $2200 times 50%=$1100.00 unearned charges
- Des Moines Area Community College is responsible for returning the lesser of unearned charges or unearned aid; $1100.00 of unearned charges would be returned to the lender because it is less than $2350.50 of unearned aid.