When there is a withdrawal the Return of Title IV funds calculation may result in the student being responsible for returning funds. For Marquette students, though uncommon, this may occur when the student’s institutional costs (direct costs such as tuition, fees, housing, and food on student’s bursar account) are quite low, the amount of unearned aid is greater, and the amount to be returned by the school does not cover the amount of unearned Title IV aid to be returned.
The statute specifies that a student is responsible for all unearned Title IV aid that the school is not required to return. The initial amount of unearned Title IV aid due from the student (or parent, for Direct PLUS Loan funds) is determined by subtracting the amount returned by the school from the total amount of unearned Title IV funds to be returned. This is called the initial amount due from the student because a student does not have to immediately return loan funds or the full amount of any grant repayment due.
Student Repayment of Unearned Loan Funds:
When the calculation results in the student repayment of unearned loan for the semester of the withdrawal, the outstanding loans are paid by the student according to the terms of the student’s promissory note(s).
Student Repayment of Unearned Grant Funds:
The regulations limit the amount a student must repay to the amount by which the original grant overpayment exceeds 50% of the total grant funds disbursed to or that could have been disbursed to the student for the semester of withdrawal.
The initial amount of unearned Title IV grant aid due from the student is determined by subtracting the grant to be repaid by the student from the initial amount of overall unearned aid due from the student. The amount of grant overpayment due from a student is limited to the amount by which the original grant overpayment exceeds half of the total Title IV grant funds disbursed or that could have been disbursed to the student. If the resulting amount is less than $50.00, the student is not responsible for returning funds to Title IV grant programs.
Grant overpayments may be resolved through full and immediate repayment to the institution,
repayment arrangements satisfactory to the school, or overpayment collection procedures negotiated with the Default Resolution Group.
Students who owe overpayments resulting from withdrawal initially will retain their eligibility for Title IV funds for a maximum of 45 days from the earlier of: the date the school sends the student notice of the overpayment, or the date the school was required to notify the student of the overpayment. Within 30 days of determining that a student who withdrew must repay all or part of a Title IV grant, a school must notify the student that they must repay the overpayment or make satisfactory arrangements to repay the overpayment.
Three formulas exist for determining the amount of the refund: the federal "return of Title IV aid" formula derived from the 1998 Reauthorization of the Higher Education Act, October 29, 2010 Final Rules and September 2, 2020 Final Rules, state of Wisconsin grant refund policy, and Marquette’s refund policy.
Students who in addition to or do not receive federal Title IV funds will have their refunds calculated using the state of Wisconsin grant refund policy (if applicable) and Marquette’s refund policy, and private scholarship and loan refund policies.
If any refund remains after the required return of Title IV aid, the refund will be used to repay state funds, Marquette funds, other private sources and the student in accordance with state regulations first and then in proportion to the amount paid by each non-federal source.
For purposes of repayment, if funds are released to a student because of a credit balance on the student’s account, the student may be required to repay some federal grants. Worksheets used to determine the amount of refund or repayment are available upon request.
The following example illustrates how the Marquette refund policy and federal policies work together.
A student withdrew on Thursday of the third week of classes in a 110-calendar-day term. Her charges of $5,000 were paid as follows: $1,200 Federal Direct Loan, $1,100 Federal Pell Grant, $2,000 Marquette scholarship and $700 paid by the student.
Under the federal return of Title IV aid policy, $1,200 would be returned to the Federal Direct Loan program and $732 would be returned to the Federal Pell Grant Program. Under Marquette’s refund policy (60 percent during the third week = $3,000 tuition refund), $791 would be returned to the Marquette scholarship fund and $277 would be returned to the student. In summary, of the $5,000 in institutional charges, $3,000 would be refunded as follows
A summary of the refund breakdown will be sent to the student’s home address.