G-034 Return of Title IV Federal Aid for Official and Unofficial Withdrawals

This policy applies to students who officially withdraw, unofficially withdraw, or are dismissed from enrollment at Southwest Minnesota State University (SMSU).

Title IV funds are awarded to the student under the assumption that he/she will attend school for the entire period for which aid is awarded. When a student withdraws, he/she may no longer be eligible for the full amount of Title IV funds that were originally scheduled to be received. Therefore, the amount of federal funds earned must be determined. If the amount disbursed is greater than the amount earned, unearned funds must be returned.

SMSU is authorized to return any excess funds after applying them to the current outstanding Cost of Attendance (COA) charges. A copy of the Institutional R2T4 worksheet performed on the student’s behalf is available through the Financial Aid Office upon written request.

In accordance with Federal Regulations, when Title IV financial aid is involved the calculated amount of the R2T4 funds is retracted in the following order:

  • Federal Direct Unsubsidized Loan Program
  • Federal Direct Subsidized Loan Program
  • Federal Direct PLUS Loans (Parent or Graduate)
  • Federal Pell Grants
  • Iraq Afghanistan Service Grant (IASG)
  • Federal Supplemental Educational Opportunity Grant Program
  • Federal TEACH Grants
  • Other Federal Title IV assistance

The institution has 45 calendar days from the date that the institution determines that the student withdrew to return all unearned funds for which it is responsible. The school is required to notify the student if they owe a payment via written notice.

Eligibility for post-withdrawal disbursements will be confirmed within 30 calendar days of the date that the student withdrew. The school must advise the student or parent that they have 14 calendar days from the date that the school sent the post-withdrawal disbursement notification to accept a post-withdrawal disbursement. If a response is not received from the student or parent within the allowed time frame or the student declines the funds, the school will return any earned funds that the school is holding to the Title IV programs.

Related Documents

G-034.1, “Return to Title IV Federal Aid for Official and Unofficial Withdrawals Procedure”

Policy History

Date of Adoption: December 4, 2025
Date of Last Review:

Date and Subject of Amendments

12/4/2025 – Creation of policy

Note: While every effort is made to ensure accuracy, SMSU reserves the right to correct any clerical errors herein. Also, you can submit feedback.