Federal regulations require that Purchase College use a Return of Title IV Funds calculation in cases where a student receiving Title IV financial aid (Pell, Perkins, SEOG, and Direct Loans) discontinues study during a given semester. If you discontinue study (drop, resign or withdraw from all courses in the semester) and have previously been awarded these funds, the university must determine if these funds are required to be returned to the appropriate financial aid programs.

What is Return of Title IV Funds Calculation?

The federally mandated process by which a school calculates the amount of federal funds to be returned for a Title IV aid recipient who withdraws or who ceases attendance during a semester. The calculations may result in a reduction of the student’s Title IV loan and grant aid to reflect the percentage of the semester that the student attended, if he or she attended 60% or less of the semester. The Return of Title IV calculation is based on the following:

  • The number of days the student attended.
  • The institution charges assessed.
  • The total amount of Title IV aid awarded, accepted and or disbursed.
  • Furthermore, the school, and the student may be required to return any “unearned” federal assistance.

Students will receive email notification to their Purchase email address and mail to their home address indicating the type and amount of aid returned to the U.S. Department of Education.

Title IV Recalculation Sample (PDF)