Return of Title IV funds | Spalding University Catalog

Return of Title IV funds

Withdraw and Return to Title IV


Financial aid funds are awarded with the expectation that you will complete the entire period of enrollment. A percentage of funds that are disbursed are earned with each day you attend class. If you must leave school before the end of the semester or designated period of enrollment, federal regulations require Spalding University to perform a return to title iv calculation to determine the percentage and amount of aid you earned and the amount of “unearned” financial aid funds that must be returned to the federal aid programs.

The programs that are covered by this law are:

Title IV Programs:

Federal Pell Grant

Federal SEOG

Federal Direct Loans (Subsidized, Unsubsidized, PLUS)



There are some funds that you were scheduled to receive that cannot be dispersed to you once you withdraw because of other eligibility requirements.

The law specifies how the school must determine the amount of Federal Title IV program assistance that you earn if you withdraw from the school.  The assistance that you have earned is determined on a pro-rated manner on a daily basis up to the 60% point in the semester.  After the 60% point, title iv aid is determined to be 100% earned.

To determine the amount of “earned” aid, the financial aid office determines the percentage of Title IV aid you earned by taking the calendar days you completed in the period of enrollment and dividing this by the total calendar days in the period of enrollment (excluding breaks of 5 days or more and days the student was on an approved leave of absence).  

For example:




The dollar amount of title iv funds earned is calculated as follows:

Percentage of Title IV aid earned multiplied by the total amount of Title IV aid disbursed. For example:

25% (% of aid earned) x $1800 (total aid disbursed) = $450.00 aid earned


If you did not receive all of the funds that you earned you may be due a post-withdrawal disbursement. If your post-withdrawal Disbursement includes loan funds, Spalding must get your permission before it can disburse them. The Office of Financial aid will notify you and/or your parent via your personal email on file with Spalding, if no personal email is listed we will mail a copy to the address on file (or parent’s email address on plus application) within 30 days of determination of your withdraw if there is any Post-Withdraw disbursement eligibility.  You and/or your parent will have to respond to that email within 14 days if you would like that post withdraw disbursement.  If you do not respond within 14 days, Spalding is not required to make the post-withdraw disbursement.  You may choose to decline some or all of the loan funds so that you do not incur additional student loan debt.

Spalding may automatically use all or a portion of your post-withdrawal disbursement of grant funds for tuition, fees, and room and board charges. Spalding needs your permission to use the post-withdrawal grant disbursement for all other school charges. if you do not give your permission, you will be offered the funds however, it may be in your best interest to allow Spalding to keep the funds to reduce your debt to Spalding.

If you receive (or Spalding or your parent receive on your behalf) excess Title IV funds that must be returned, Spalding must return a portion of the excess funds equal to the lesser of 1. Your institutional charges multiplied by the unearned percentage of your funds, or 2. The entire amount of excess funds.

Spalding must return the amount even if we didn’t keep this amount of your title iv funds.  If Spalding is not required to return all of the excess funds, you must return the remaining amount.

You (or your parents for plus loans) will repay any loan funds that you must return in accordance with the terms of the master promissory note. That means you make the scheduled payments to your loan servicer over a period of time. Any amount of unearned grant funds that you must return is called an overpayment.  You will be notified via your personal email account on file with Spalding, (If no personal email is listed a letter will be mailed to the address on file)  of the results of the r2t4 calculation with the amount you owe, if any and what amount if any was returned to the loan servicer.


Your withdrawal date is:

  • The date you begin the Institution’s withdrawal process or officially notified the institution of the intent to withdraw (this could be via the official withdraw from the university form, email, or verbally from the student, or
  • The mid-point of the period when you leave without notifying the institution or
  • Your last date of attendance at a documented academically related activity 

The requirements for Title IV program funds when you withdraw are separate from any refund policy OF Spalding University.  Therefore, the student may still owe funds to Spalding University to cover unpaid institutional charges.  Spalding may also charge the student for any Title IV program funds that Spalding was required to return. You will be notified via your personal email account on file with Spalding (if no personal email is listed a letter will be mailed to the address on file) of the results of the r2t4 calculation with the amount you owe, if any and what amount if any was returned to the loan servicer.


Spalding must complete the calculation and return unearned title iv program funds for which it is responsible as soon as possible but no later than 45 days after the date of determination of a student’s withdrawal.

Spalding must return title iv funds to the programs from which you received aid during the period of enrollment in the following order:

Unsubsidized direct loans (other than direct plus)

Subsidized direct loans

Direct plus loans (parent or graduate)

Federal Pell grant for which an r2t4 is required

FSEOG for which a r2t4 is required

Iraq and Afghanistan service grant for which an r2t4 is required


The Office of the Registrar can provide you with the requirements and procedures for officially withdrawing from Spalding.