Financial Aid

Return of Title IV Funds Policy

If you are receiving federal financial aid, and completely withdraw (all W grades) or receive all non-passing grades (F, I, W, X, UD, or UF) during a semester, CSU will return all “unearned” Title IV aid under federal mandate.

In order to receive 100% of federal financial aid you must receive at least one passing grade, and/or attend 60% of one academic course throughout the semester. If you failed to earn a passing grade, but were in attendance at an academically-related activity through 60% of the period, then the Financial Aid Office will attempt to verify your last date of attendance with your course instructor(s).

In the event we are unable to verify your last date of engagement, you will be notified and provided an opportunity to submit an Attendance Verification Form (CSU Official’s Signature Required).  The following are examples of approved academic-related activities*:

  • Examinations, quizzes, tutorials or lectures
  • Computer-assisted instruction
  • Completing an academic assignment, paper, or project
  • Attending an academic conference or study group required by the institution

*In accordance with federal rules, participating in academic counseling or advisement, or logging into an online class without active participation will not be considered an academically-related activity.

The “Return of Title IV” (R2T4) calculation is based on the student’s withdraw date, as determined below:

  • For a complete withdrawal, this is the date the student totally withdrew from all courses.
  • For all nonpassing grades and non-attendance of 60% of the period, the withdraw date is the midpoint of the semester.

Schools are required to return “Unearned” aid in the following order:

  • Direct Unsubsidized Stafford Loan
  • Direct Subsidized Stafford Loan
  • Direct PLUS Loan (Parent or Graduate/Professional Student)
  • Federal Pell Grant
  • Federal SEOG
  • TEACH Grant

Ineligible aid or loans must be returned within 45 days following the withdraw date or the date the school learned the student failed to earn a passing grade.

Schools are required to return the lesser of:

  • The amount of “unearned” Title IV aid, or
  • The total institutional charges multiplied by the percentage of funds determined to be “unearned”

The Office of Treasury Services will bill the student for any balance created as the result of a federally required return of federal grants or loans.

Post-Withdrawal Disbursements:

If at the time of your withdrawal, you did not receive all the federal funds that you were awarded, you may be eligible for a post-withdrawal disbursement.  The Financial Aid Office will perform a calculation to determine if you are eligible to receive all or a portion of your non-disbursed federal grant or loan funds.

Schools are permitted to credit a student’s account with a post-withdrawal disbursement of Title IV grant funds without a student’s permission. This would happen with current charges for tuition, fees, and room and board up to the amount of outstanding charges. A school must obtain permission from the student for charges other than those that are current.

In order to receive federal grants or loans as a post-withdrawal disbursement:

  • Students must have accepted their nondisbursed federal grants or loans in CampusNet;
  • Direct Loans must have originated prior to the student losing eligibility; and
  • For loans, the Master Promissory Note (MPN) and Loan Entrance Counseling (LEC) must have been completed at the time of R2T4 calculation.

Prior to making a post-withdrawal disbursement of loan funds, a student will be notified in writing within 30 days of the withdrawal date.  The student must sign and return the Post-Withdrawal Disbursement Offer within 14 days of receipt in order to be considered for these additional funds. 

Important Information Regarding Summer Sessions:

Effective July 1, 2011, The U.S. Department of Education has revised regulations regarding students enrolled in a semester with multiple sessions. The new regulations prevent students from enrolling in multiple sessions spanning the semester, completing only a portion of the semester, and retaining all aid for the period.

The new regulations require students to earn a passing grade in their last scheduled session to earn 100% of their federal student aid. Failure to earn a passing grade in your last scheduled session may result in a return of financial aid.

Example 1: Student enrolled in 6W1 and 6W2; Earns a passing grade(s) in 6W1, but withdraws from all courses or fails to earn a passing grade in 6W2.

Example 2: Student enrolled in 6W1 and 12W (full term); Earns a passing grade(s) in 6W1, but withdraws from all courses or fails to earn a passing grade in 12W.

Students are strongly encouraged to contact Campus411, All-in-1 in BH, Room 116, or call 216-687-5411 or email to determine how a drop or withdrawal may impact aid eligibility.