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Federal Refund Policy-Return to Title IV (R2T4) Policy  

Refund Policy for Students Receiving Federal Title IV Aid (Financial Aid)   

Title IV funds are awarded to students under the assumption that the student will attend school for the entire term for which the aid is awarded. When a student fails to complete the term, the student may no longer be eligible for the full amount of Title IV funds he or she was scheduled to receive. 

When does Shaw University’s Bursar refund tuition and fees?  
If you withdraw from Shaw University prior to the end of the drop/add period, then a full tuition and fee refund with be automatically processed for you. 

How much will I have to repay when I withdraw from school?  
If you withdraw from school prior to completing 60% of a term, you may be required to repay a portion of the federal financial aid that you received for that term. The amount of repayment depends upon the number of days that you attend school in the term, the type of financial aid that you received, and whether or not Shaw University refunds your tuition and fees. 

Federal regulations require Shaw University to determine the amount of aid “earned” by each student receiving Title IV aid and withdrawing from all of his or her classes prior to the end of the term. The portion of the term that you do not attend represents the portion of aid that is determined to be unearned. All students who withdraw prior to completing over 60% of a term may have to repay a portion of their federal financial aid. 

When will I have earned 100% of my federal financial aid?  
Students completing 60% of the term are considered to have "earned" 100% of the Title IV aid funds he or she was scheduled to receive during the term. Title IV Federal Aid covered by this policy includes the Federal Direct Stafford Loan, Federal Direct PLUS Loan, Federal Pell Grant, and Federal Supplemental Educational Opportunity Grant. Any student earning a passing grade in at least one course for the term is not subject to the Return to Title IV Funds Policy.   

Calculations are based on the student's official withdrawal date or for unofficial withdrawals, the last date of an academically related activity that the student participated in, the midpoint of the term, or the date the school determines the student ceased attendance due to illness, accident, or other circumstances beyond the student’s control. Unofficial withdrawal dates are determined by the faculty, identifying the last date of activity for courses where the student earned a 'Z', 'I', or 'W'. Shaw University’s grading policy stipulates that only students who have completed the term, but failed to meet course requirements will receive an ‘F’ grade. Students that fail to complete the term due to an unofficial withdrawal will receive a 'Z' for the course. This policy allows the University to distinguish between ‘earned’ F’s, and students that failed because they unofficially withdrew from the University

The withdrawal date must be determined within 30 days of the end of the term, academic year, or student’s program, whichever is earlier. 

The institution must return the amount of Title IV funds for which it is responsible no later than 45 days after the date of determination of the date of the student’s withdrawal. Shaw University offers all degree programs in a credit hour, term based format. As a credit hour, term based degree program, the following formula is used to compute the return: 

  • Days Enrolled/Days in Term x Title IV Aid Awarded and Disbursed = Aid Earned 
  • Aid Disbursed – Aid Earned = Aid to be Returned  

Order of Funds to Return  

  • Federal Direct Unsubsidized Loans
  • Federal Direct Subsidized Loans
  • Federal PLUS Loans
  • Federal Pell Grant
  • Federal Supplemental Education Opportunity Grants

If a student earned less aid than was disbursed, the institution would be required to return a portion of the funds and the student would be required to return a portion of the funds. Remember that when Title IV funds are returned, the student may owe a balance to the institution. 

If a student earned more aid than was disbursed to him/her, the institution will owe the student a post-withdrawal disbursement, to be paid within 120 days of the student’s withdrawal.