Withdrawals and Refunds

If a student finds it necessary to withdraw from the program, withdraw from a course or courses without an approved leave of absence, or to take leaves of absence that exceed 180 days in a twelve month period, a federal student financial aid Return of Funds calculation will be performed. This calculation determines how much federal student financial aid has been earned and is based on the number of days attended during the payment period when the student withdraws. The amount of federal student financial aid funds to be returned by IWU to the funding source is based on the amount of those funds that the Return of Funds calculation determined were not earned by the student. The following is an example of the Return of Funds calculation:

• The student begins class on June 28 and the payment period runs until January 17.
• The student withdraws from the program on October 4.
• The payment period has 152 calendar days in it (not including break periods) and the student completed 86 days which is 56.6% of the payment period.
• The amount of the funds to be returned will be 43.4% of the federal student financial aid funds received.

The Financial Aid Office will determine the amount of the return of funds that is owed by IWU and the amount, if any, that is owed by the student. A letter will be sent to the student indicating the results of the return of funds calculation and the amount of the return of funds, if any. The student will earn 100% of the federal student financial aid funds received for the payment period if the return of funds calculation shows the student completed 60% or more of the payment period.

Funds will be returned to the federal student financial aid programs in the following order: unsubsidized Federal Direct Loan, subsidized Federal Direct Loan, Federal Perkins Loan, Federal Direct PLUS Loans, Federal Pell Grant, Federal SEOG, Federal TEACH Grant and other Title IV grants. The student will have 45 days to contact the Financial Aid Office to make arrangements to repay any federal grants that are owed by the student. Failure to make arrangements or to pay back the federal grants will mean the student is no longer eligible to receive federal student financial aid at any institution until full repayment.