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Return of Title IV Refund Policy

Students that completely withdraw from all classes either officially or unofficially, are dismissed/expelled, or leave the School of Urban Missions (SUM) prior to completing more than 60% of the trimester must repay some or all of the Federal financial aid funds received or paid on their behalf.

Federal student aid regulation 34 CFR 668.43 requires the SUM Office of Financial Aid to calculate an amount of money the student may be required to return that they received in Federal Title IV and Campus-Based Aid (Federal Pell Grant, Federal SEOG, and Federal Direct Stafford Student Loans. The withdrawal date is defined as the actual date the student began the institution's withdrawal process, the student's last date of recorded attendance, or the midpoint of the quarter/semester for a student who leaves without notifying the institution. The Federal Title IV programs covered under this policy include Federal Pell Grant, Federal SEOG, Federal Stafford Loans, and Federal PLUS Loan (Graduate Student or Parent).

SUM and the student share the responsibility for returning Title IV aid.  SUM returns "unearned" Title IV funds that have been paid to the school to cover the student's institutional charges received from Title IV grant and/or loan programs. If the student owes funds back to the Title IV programs, the institution will advise the student. The student has 45 days from the date of notification from the institution to take action on the overpayment.

No additional disbursements may be made to the student for the enrollment period. If the student does not repay the amount owed to the Title IV programs or does not make satisfactory payment arrangements with the U.S. Department of Education, SUM may report to the National Student Loan Data System (NSLDS) that the student received an overpayment. The student loses eligibility for further Title IV aid until resolved.

Recalculation is based on the percent of earned aid using the following formula: Percent earned = Number of calendar days completed up to and including the withdrawal date/ total calendar days in the quarter/semester. Scheduled Break:  In accordance with regulation 34 CFR 668.22(f)(2)(i), SUM  will exclude all breaks exceeding five days or more from the return calculation. For example, Christmas break will be excluded from the Return calculation as a period of non-attendance and, therefore, do not affect the calculation of the amount of Federal student aid earned.

Federal Title IV financial aid is returned to the federal government (reducing student loan debt) based on the percent of unearned aid using the following formula:

Aid to be returned = (100% - percent earned) x the amount of aid disbursed toward institutional charges.


Return of Funds

Federal Title IV financial aid is returned in the order mandated by the U.S. Department of Education. No program can receive a refund if the student did not receive aid from that program. Funds must be returned within 45 days after the date of withdrawal determination. Return of funds required by the student for unearned aid is returned (repaid) in accordance to the terms of the loan on the promissory note. The order is as follows based on aid offered at SUM:

  1. Unsubsidized Direct Stafford Loan
  2. Subsidized Direct Stafford Loans
  3. Direct PLUS (Graduate Student or Parent)
  4. Pell Grant
  5. FSEOG


Post-Withdrawal Disbursements

If it is determined that a student is eligible for Federal Title IV financial aid funds that have not been disbursed, grant funds that the student is eligible for will be disbursed first. Federal aid that the student is eligible for will be credited to the student's account for outstanding charges. If the student has no outstanding charges or if there is a balance due the student after disbursement, SUM will notify the student of his/her eligibility for the loans. The student must respond within 14 days of the date of the letter as to whether they want all, part, or none of the loan(s). If the student fails to respond within 14 days, no loan disbursement will be made.

Before calculating the amount of financial aid that must be cancelled, the following is taken into consideration:

  • If a promissory note for a Stafford Loan has not been signed and submitted by the student prior to the withdrawal date, the loan(s) is automatically cancelled.
  • If an entrance loan interview has not been completed by the student prior to the withdrawal date, the Stafford Loan is automatically cancelled.
  • If the student is a first-time attendee of SUM and withdraws during the first 30 days of the semester, the Stafford Loan is automatically cancelled.
  • Students who have not completed verification are not eligible for financial aid and are not included under this policy.


Loan Exit Counseling

Loan Exit Counseling is a requirement for everyone who has borrowed funds from the Federal direct student loan program. It is designed to prepare you for repaying your student loans and help you with personal financial management.

In exit counseling you will learn your rights and responsibilities and the consequences of not repaying your student loans. In addition, repayment options, debt management possibilities, and loan consolidation is discussed in more detail. You will need to know which types of federal student loans you have borrowed during your years of attendance at SUM. You may obtain this information online at Your FSA User ID will be required to access the system.

If you borrowed under the Federal Direct Stafford Loan Program (either a Subsidized or an Unsubsidized Stafford Loan, or both), please complete your loan exit counseling online at

It is important that you understand the seriousness of repaying your student loans. If you have any difficulties in making your loan payments, please contact your loan servicer that you can also find at

You are encouraged to visit the SUM Office of Financial Aid or your Cohort Advisor to discuss your situation and options prior to withdrawing. You may wish to avoid owing a repayment on the Federal student aid you received by staying in some or all of your classes.  

Failure to pay your Federal aid overpayment as a result of withdrawing officially or unofficially from SUM may result in you not being eligible for Federal student aid at any school in the country until the repayment is made. Also, please be aware that if financial aid funds are returned to the US Department of Education by SUM, you will be responsible for immediate repayment for any balance due that appears on your student account.

Please visit the SUM Office of Financial Aid should you wish to view a detailed Return of Title IV Refund Policy and Procedure.




Last Updated: May 14, 2018