For Financial Aid Departments, Directors, and School Leaders, understanding what happens to Title IV funds if student withdraw from a program are an important component of day-to-day operations. It’s also critical to ensuring an accurate calculation to remain compliant.
Our team at FA Solutions LLC serves as financial aid-servicing partners for leaders and department heads across the country. Understanding the return regulations and implications of Title IV funds is just one of our service options and we recommend the following practices based on success across other partner institutions:
- Ensure a solid policy and procedure is documented.
- Have strong communication between departments to ensure information about enrollment status changes is shared timely and accurately.
- Have a second set of eyes review the calculation.
- Review policies and procedures and conduct training yearly.
The return of Title IV funds needs to occur when a student ceases to be enrolled or goes through what is called a 100% withdrawal. It’s important to note that a change in enrollment status does NOT constitute a full withdrawal. An example of this is if a full-time student adjusts to a part-time student status by reducing their semester credit load.
Regulations and specifications around Title IV funds update and adjust constantly. There was new guidance released in July of 2021, and with the ongoing outbreak of COVID-19, another set of flexibilities surrounding the funds is also in effect.
Title IV funds are meant to be awarded to students with the assumption that they will attend school/courses for the entire period of time attached to the funding. When that is not the case, the four best practices above are critical for not just accurate return procedures, but for communication, tracking, and consistency in expectations and guidelines.
Employees supporting financial aid services and students receiving these services alike should have a working and clear understanding of not just when Title IV funds are awarded, but when they are no longer applicable.
Need Help Fixing Your Financial Aid Operations?
Whether your Financial Aid Department and/or team needs a little more support putting best practices in place for the return of Title IV funds or something more robust, FA Solutions LLC is standing by to lend a helping hand. We operate as an extension of your institution so that both employees and students operating within the Financial Aid realm benefit.
Making the financial aid process easier to navigate and understand is what we are here for, and our expert staff will work alongside your team as guides, mentors, and consultants. One of our main goals is to help ensure institutions are aware of and keeping current with new regulations and best practices, like the return of Title IV funds. Give us a call or fill out our online form to connect with a representative to learn more about how FA Solutions LLC can support your Financial Aid Department, best practices, and processes.