Title IV funds are federal funds awarded to a student under the assumption that the student will attend school for the entire period for which the assistance is awarded. When a student withdraws, the student may no longer be eligible for the full amount of Title IV funds that the student was originally scheduled to receive.
If a student has received Title IV financial aid, a refund must be calculated under the federal Return of Title IV Funds policy. The refunds are based on the number of days attended for the semester, divided by the total number of days in the semester (minus any scheduled breaks of at least five days in length). Funds are deposited back to the financial aid accounts in accordance with federal regulations. If financial aid funds have been earned and not yet received, the student will be contacted by the Office of the Bursar.
The federal formula requires a return of Title IV aid if the student received federal financial assistance in the form of a Pell Grant, Supplemental Educational Opportunity Grant, Federal Perkins Loan, Federal Stafford Loan or a PLUS Loan and withdrew on or before completing 60% of the semester.
After all Title IV aid return requirements have been satisfied, remaining credit balances will be used to pay existing outstanding fees and then repay Purdue University's funds, state funds and other private sources. If a credit balance remains after all aid sources have been repaid, funds are returned to the student.
Please contact the Office of the Bursar if you have any questions about refunds or the calculation of refund amounts.
Distribution priority of Title IV refunds and repayment is as follows:
- Unsubsidized Direct Stafford Loans.
- Subsidized Direct Stafford Loans.
- Federal Perkins Loans.
- Direct PLUS Loans (graduate).
- Direct PLUS Loans (parent).
- Federal Pell Grants.
- Federal Supplemental Educational Opportunity Grants (FSEOG).
- Federal Teach Grants for which a return is required.
- Iraq Afghanistan Service Grant for which a return is required.
- Other Title IV aid.
- Other state, private or institutional aid.
- The student.