The Return of Title IV Funds Policy helps explain certain procedures the ***Embry‐Riddle Aeronautical University (ERAU) Financial Aid Office must follow when administering the Federal Financial Aid Programs. It contains information for students who audit, drop, withdraw, cease to attend or cease to participate from all classes within a semester/term and receive financial aid. The Return of Title IV Funds Policy, in accordance with federal regulations, will determine the amount of financial aid funds to be returned. This policy is subject to change in order to comply with administrative and regulatory requirements.
What constitutes a withdrawal?
Students who *audit, drop, withdraw or receive an “F” for *non-attendance or *non-participation from all their classes in a semester and/or term are subject to the Return of Title IV Federal Financial Aid Programs Policy.
* If student changes all enrolled courses to audited courses after a Federal Aid disbursement occurred, the student is considered to have withdrawn on the date the final course was changed to an audited course, and a return of Title IV funds (R2T4) calculation must be performed.
* If a student ceases to attend all registered classes and/or ceases to participate in an academically related activity at any point during their Semester or Term of enrollment, the faculty will use their discretion to assign an appropriate grade and supporting last date of attendance. For more information, please review your campus catalog for grading and academic policies.
How does ERAU determine the return of Title IV funds amount?
Students earn a percentage of their federal financial aid each day they are enrolled. When a student withdraws from all their courses or ceases attendance or non-participation in all courses in a semester/term, this percentage is calculated by the number of days attended divided by the number of days in the semester/term.
The amount of federal aid you received and your institutional charges will also be used to determine the amount of federal funds to be returned.
Students withdrawing beyond 60% of the semester/term will have 100% of Title IV programs funds earned.
Who is responsible for the return of funds?
Both the university and/or the student could be responsible for the return of funds. The financial responsibility is determined as part of the Return of Title IV funds calculations. If the university is responsible, the funds are returned to the appropriate program.
If the student is responsible, direct loans are returned according to the promissory note. If any portion of the return of funds is due to a grant program, the university will return the funds on behalf of the student. In some cases, the student may have a balance owed to the university.
How will the money be returned?
The money will first be returned to the loan and/or grant programs that you received during the semester/term. ERAU must follow a specific order in returning the money. The order is:
- Federal Unsubsidized Direct Loan
- Federal Subsidized Direct Loan
- Federal Direct PLUS Loan
- Federal Pell Grant
- Iraq and Afghanistan Service Grants
- Federal Supplemental Educational Opportunity Grant (SEOG)
Is there anything else I should know if I withdraw from the university?
Yes. If you must withdraw from ERAU, you should complete a Withdrawal form through the Records and Registration Office at your campus. This form will be used to determine your withdrawal date and the amount of funds to be returned, if applicable.
In addition to the Return of Title IV Funds Policy, the Student Financial Services will apply an institutional Refund Policy as defined in the catalog for your campus to determine if you are eligible for a tuition credit. For more information concerning the Institutional Refund Policy, contact the Student Financial Services.
***Circumstances may necessitate withdrawal from the university for a semester or term in which you are already registered. Withdrawal from all classes, programs, campus and/or locations impacts your financial aid differently depending on when the withdrawal is initiated and the type of financial aid you received. However, in all cases, your financial aid must be recalculated.
Revised 9/20/2023 (6)