The law specifies how Bellarmine University must determine the amount of Title IV program assistance that you earn if you withdraw from school. The Title IV programs that are covered by this law are: Federal Pell Grants, Iraq and Afghanistan Service Grants, TEACH Grants, Direct Loans, Direct PLUS Loans, Federal Supplemental Educational Opportunity Grants (FSEOGs), and Federal Perkins Loans.
Though your aid is posted to your account at the start of each semester, you earn the funds as you complete the semester. If you withdraw during the semester, the amount of Title IV program assistance that you have earned up to that point is determined by a specific formula. If you received (or Bellarmine or your parent received on your behalf) less assistance than the amount that you earned, you may be able to receive those additional funds. If you receive more assistance than you earned, the excess funds must be returned by Bellarmine and/or you.
The amount of assistance that you have earned is determined on a pro-rata basis. For example, if you completed 30% of your semester, you earn 30% of the assistance you were originally scheduled to receive. Once you have completed more than 60% of the semester, you earn all of the assistance that you were scheduled to receive for that semester.
If you did not receive all of the funds that you earned, you may be due a post-withdrawal disbursement. If your post-withdrawal disbursement includes loan funds, Bellarmine must get your permission before it can disburse them. You may choose to decline some or all of the loan funds so that you don’t incur additional debt. Bellarmine may automatically use all or a portion of your post-withdrawal disbursement of grant funds for tuition, fees, and room and board charges. Bellarmine needs your permission to use the post-withdrawal grant disbursement for all other school charges. If you do not give your permission, you will be offered the funds. However, it may be in your best interest to allow Bellarmine to keep the funds to reduce your debt at Bellarmine.
If you receive (or Bellarmine or your parent receive on your behalf) excess Title IV program funds that must be returned, Bellarmine must return a portion of the excess equal to the lesser of:
- Your institutional charges multiplied by the unearned percentage of your funds, or
- The entire amount of excess funds.
Bellarmine must return this amount even if it didn’t keep this amount of your Title IV program funds.
If Bellarmine is not required to return all of the excess funds, you must return the remaining amount. Any loan funds that you must return, you (or your parent for a Direct PLUS Loan) repay in accordance with the terms of the promissory note. That is, you make scheduled payments to the holder of the loan over a period of time.
Any amount of unearned grant funds that you must return is called an overpayment. The maximum amount of a grant overpayment that you must repay is half of the grant funds you received or were scheduled to receive. You do not have to repay a grant overpayment if the original amount of the overpayment is $50 or less. Bellarmine will return the unearned grant funds for you, which may cause you to owe a balance.
The requirements for Title IV program funds when you withdraw are separate from any refund policy that Bellarmine has. Therefore, you may still owe funds to Bellarmine to cover unpaid institutional charges. Bellarmine may also charge you for any Title IV program funds that Bellarmine was required to return. If you don’t already know Bellarmine’s refund policy, you can ask for a copy in the Office of the Registrar. Bellarmine can also provide you with the requirements and procedures for officially withdrawing from school.
If you have questions about your Title IV program funds, you can call the Federal Student Aid Information Center at 1.800.4.FED.AID (1-800-433-3243). TTY users may call 1.800.730.8913. Information is also available on “Student Aid on the Web” at studentaid.gov. The Office of Financial Aid and the Bursar at Bellarmine are also available to assist you.