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Financial Aid

Policies and Procedures

Return of Title IV Funds


This notice serves to disclose required student consumer information in regards to how withdrawals may affect your Title IV Funds.

The Higher Education Amendment of 1998 required schools to implement a Return of Title IV Refund Funds Policy when a Title IV (federal financial aid) recipient withdraws from school.  A federal financial aid recipient is defined as a student who has received Title IV funds such as but no limited to Federal Pell Grant, Federal Supplement Educational Opportunity Grant, Federal Direct Loans, Federal Perkins Loan, and Federal Direct PLUS Loan.

Title IV funds are awarded to students with the assumption that he/she will attend school for the entire term or payment period. As a federal financial aid recipient, it is important to understand that there is a unique refund schedule for your financial aid that differs from the university tuition and fee refund schedule. Students who completely withdraw from classes (dropping of all courses) or student who began attendance and failed to earn a passing grade in at least one course offered over an entire term or payment period (known as an Unofficial Withdrawal) are subject to the Return of Title IV refund calculation as dictated by federal regulations.

Determination of Federal Aid Earned

Earned aid is determined based on the number of calendar days the student attended classes divided by the total number of calendar days in the term. The result is a percentage of federal aid funds that the student is entitled to keep.

For example, a student who attends 20% of the term has earned 20% of the total aid value that was disbursed to their student account.

Return of Unearned Federal Aid

Texas A&M University-Kingsville is authorized to return any excess funds after applying them to current outstanding Cost of Attendance (COA) charges. A copy of the Institutional Return of Title IV worksheet performed on the student’s behalf is available through the Financial Aid Office upon written request. In accordance with Federal regulations, when Title IV, HEA financial aid is involved, the calculated amount of the Return of Title IV funds is retracted in the following order:

    1. Unsubsidized Federal Direct Stafford Loan Program

    2. Subsidized Federal Direct Stafford Loan Program

    3. Federal Direct Graduate PLUS Loan Program

    4. Federal Direct Parent Loan Program (PLUS)

    5. Federal Pell Grants

    6. Federal Supplemental Educational Opportunity Grant Program

    7. Iraq Afghanistan Service Grant

Once the school initiates the return of funds to the federal government, students will see these entries on their online student account. The total amount returned may result in the student owing the school. If a balance due is created, you now have a financial obligation with the school. A financial obligation will prohibit the student from all registration activities, receiving academic transcripts, diplomas, and/or other entitlements until it is paid.  In addition, the student may be required to directly repay a portion of the Title IV funds that were received. Any repayment outstanding or unpaid will be referred to the U.S. Department of Education for collection and legal disposition.

Any student who does not complete at least one course within an academic semester for which financial aid is received, or could have been received, will be reviewed for a Return of Title IV Funds calculation. This includes students who drop, officially or unofficially withdraw, are dismissed or take a leave of absence during a semester.

The Return of Title IV Funds is based on the premise that students "earn" financial aid for each calendar day that they attend classes. For example, if a student attends 32 days of a semester that is 80 calendar days in length, the student will have "earned" 40 percent of his or her aid.

Students who complete more than 60 percent of the semester are considered to have earned 100 percent of their financial aid.

The Return of Title IV Funds policy is separate from each college's refund policy. A student who withdraws from the semester may be required to return unearned Title IV financial aid funds and may still owe Texas A&M University-Kingsville for institutional charges. Please refer to your program's student handbook for your colleges' refund policy.

Return of Title IV Funds does not apply to federal work-study, scholarships, state grants such as the TEXAS Grant, or institutional awards. Please contact the Office of Student Financial Aid for more information on the consequences of dropping classes if you receive these types of financial aid.

If a student is required to return Title IV funds as a result of his or her drop, withdrawal, or dismissal, or is eligible for a late disbursement, the student will receive a letter from the Office of Student Financial Assistance along with a copy of the Return of Title IV Funds Calculation. The student should follow the instructions in the letter carefully to repay any funds due or to accept a late disbursement. Students with "unearned" financial aid funds must repay these funds to Texas A&M University-Kingsville, or set up a repayment agreement with Texas A&M University-Kingsville’s Business Office within 45 days of notification or they will lose eligibility for future Title IV aid and be subject to the student accounts receivable collection process.

Students who drop one or more of their classes may fail to maintain Satisfactory Academic Progress which may result in ineligibility for financial aid in the future. Please contact the Office of Student Financial Aid and speak to a financial aid officer before dropping a course.


The Office of Student Financial Aid determines the percentage of Title IV, HEA aid the student earned by taking the calendar days completed in the period of enrollment and dividing by the total calendar days in the period of enrollment (excluding breaks of 5 days or more and days the student was on an approved leave of absence).

Example: 19 completed days 76 total days = 25% Title Aid Earned

The Financial Aid Office determines the dollar amount of Title IV, HEA aid the student earned by multiplying the percentage of Title IV, HEA aid earned by the total of the Title IV aid disbursed plus the Title IV, HEA aid that could have been disbursed for the period of enrollment.

Example: 25% x ($1800 disbursed) = $450.00 Aid Earned

If this percentage is greater than 60%, the student earns 100% of the disbursed Title IV, HEA funds or aid that could have been disbursed.

If this percentage is less than 60%, then the percentage earned is equal to the calculated dollar amount earned.

Funds are returned to the appropriate federal program based on the Percentage of Aid Earned and the Order of Return dictated by the ED.
Aid to be returned is equal to (100% minus the Percent earned) multiplied by the amount of aid disbursed toward institutional charges.

If a student earned less aid than was disbursed, the institution would be required to return a portion of the funds and the student may be required to
return a portion of the funds (Office of Student Financial Aid would return the student owed funds along with the funds that must be returned by Texas A&M University-Kingsville).

All Title IV, HEA fund returns must be completed no later than 45 calendar days after the date the Financial Aid Office determines that the student withdrew.
When Title IV, HEA funds are returned, the student may owe a balance to the institution.