Return of Title IV Funds (Refund and Repayment Policy)
If students receiving federal financial aid withdraw from the College, the amount of the financial aid to be repaid or refunded is calculated using a formula supplied by the U.S. Department of Education. The last day of attendance is used to calculate the total amount to be repaid. A refund is the difference between the amounts paid toward institutional cost (including financial aid and/or cash paid) and the amount the school may retain under the appropriate refund policy. See the Financial Aid Student Handbook for detailed information on the Title IV Refund/Repayment policy.
The order of refunding Title IV funds to the programs from which the student received aid during the payment period or period of enrollment is in the following, up to the net amount disbursed from each source:
- Unsubsidized Federal Stafford loans*
- Subsidized Federal Stafford loans*
- Unsubsidized Direct Stafford loans (other than PLUS loans)
- Subsidized Direct Stafford loans
- Federal Perkins loans
- Federal PLUS loans
- Direct PLUS loans
- Federal Pell Grants for which a return of funds is required
- Academic Competitiveness Grant for which a return of funds is required
- National Smart Grants for which a return of funds is required
- Federal Supplemental Educational Opportunity Grant (FSEOG) for which a return of funds is required
- Federal TEACH Grants for which a return is required.
* Diné College does not participate in the Federal Student Loan Program and will not certify enrollment or shareinformation with potential lenders.
Calculating Unearned Aid
Students who receive federal financial aid must earn the aid they receive by staying enrolled in and successfully completing courses. The amount of aid a student earns is pro-rated based on the number of days of attendance. Students with an official or unofficial withdrawal may be required to return some or all of the financial aid they received based on the federal Return of Title IV (R2T4) calculation.
Once 60% of the term is completed, a student is considered to have earned all of the financial aid disbursed and will not be required to return any federal funds. Students enrolled in modules, however, have unique calculations for this 60% point. A module is any course other than the standard 16-week session, such as 3-, 7.5-, or 8-week sessions; all summer sessions are modules.
The following information is used in the R2T4 calculation to determine the percentage of unearned aid that must be returned to the federal government:
- The percent earned is equal to the number of calendar days completed up to the withdrawal date, divided by the total number of calendar days in the payment period (less any scheduled breaks that are at least 5 days long, such as spring break).
- The payment period is the period for which a student was awarded aid, which for most students is the entire semester. Students enrolled only in modules have a payment period that only includes the days of the modules in which the student is registered.
- The percent unearned is equal to 100% minus the percent earned.
Institutional funds are also earned and recalculated based on the proration policy for federal financial aid funds, and tuition and fee refunds affect the return of institutional aid.
Types of Withdrawals and the Last Date of Attendance
For financial aid purposes, there are two types of withdrawals: Official and Unofficial.
- Official withdrawal – the student initiates the drop of all of the term’s courses by withdrawing in LOUIE or in the form of written documentation to the Office of the Registrar. The date the student began the withdrawal process or otherwise notified the university, in writing, of their intent to withdraw is considered the last date of attendance for withdrawal purposes. A student simply inquiring about the withdrawal process does not count as notification for this purpose. The student must state an intent to withdraw.
- Unofficial withdrawal – the student receives all fail (F) grades or a combination of all fail (F) and withdraw (W) grades. The last date of attendance is based on academic-related activity, and is provided by each course’s faculty member; the latest date is used for withdrawal purposes. If a student leaves the university without notifying the Registrar and the faculty member cannot determine a last date of attendance, the withdrawal will be calculated using the midpoint of the term.
When determining the last date of attendance for an unofficial withdrawal, the last date of an academic activity will be used.
Acceptable forms of academic activity include:
- Physically attending a class where there is direct interaction between the instructor and students
- Exams, quizzes, or tutorials
- Computer-assisted instruction
- Completion of an academic assignment, paper, or project
- Participating in an online discussion about academic matters
- Initiating contact with a faculty member to ask a question about the course content
- Attending a required study group or Supplemental Instruction session where attendance is taken
Unacceptable forms of activity include:
- Student’s self-certification of attendance that is not supported by school documentation
- Verification of Enrollment form issued by the Office of the Registrar
- Living in on-campus housing
- Participating in the school’s meal plan
- Participating in academic counseling or advising
Withdrawal Calculation Timeline
Once a student officially withdraws or the university learns that a student has unofficially withdrawn, Dine College has 45 days to perform the R2T4 calculation.
Post-Withdrawal Disbursements (PWD):
In compliance with federal regulations, an evaluation will be done to determine if all eligible aid was disbursed as of the withdrawal date. If not, and the student meets the criteria for a PWD, the student will be notified by the Office of Financial Aid & Scholarship (OFA&S) of their eligibility within 30 days of determining the student’s date of withdrawal. After receiving this notification, the student must notify OFA&S if they wish to accept the disbursement. A PWD would first be applied toward any outstanding charges before any funds are returned in a refund to the student. If no response is received within 10 business days of notification, the award will be cancelled.
Notification of Repayment
Once the withdrawal calculation has been processed by OFA&S, a notification letter outlining the amount required to be returned to the federal. Dine College will return funds on the student’s behalf to the appropriate federal and subsequently will bill the student’s account. A statement reflecting these charges will be sent to the student and Business Office.
The student is responsible for all charges and overpayments of aid resulting from a Return of Title IV calculation.