Refunds and the “Return of Title IV Funds" Policy
Financial aid recipients who completely withdraw from or stop attending a term prior to the 60% point of that term are subject to the federal return of Title IV fund rules for any federal aid not earned and the Minnesota Office of Higher Education refund calculation for Minnesota State grant, scholarship or loan aid. Examples of both calculations are available from the Business Office at the student’s request. The student may also be eligible for a refund of a portion of the tuition and fees paid to Normandale for the semester, according to the Normandale refund policy. If the student received financial aid, then a portion of the refund will be returned to the grant or loan program from which it was received and the student may owe Normandale for a portion of the tuition and fees.
Students who wish to completely withdraw from a term must do so according to Normandale’s withdrawal policies. Financial aid recipients are responsible for understanding the impact of such action on their student account and MUST contact the Business Office at 952-358-8227 after withdrawing.
Normandale’s refund policy exists for calculating the refund of institutional charges. The federal Return of Title IV Funds formula dictates the amount of federal Title IV aid that must be returned to the federal government by the school and the student.
The federal formula requires a return of Title IV aid if the student received federal financial aid and withdrew or stopped attending all classes on or before completing 60% of the semester. The percentage of Title IV aid to be returned (that which is unearned) is equal to the number of calendar days remaining in the semester divided by the total number of calendar days in the semester. Scheduled breaks of more than four consecutive days are excluded.
The responsibility to repay unearned aid is shared by the institution and the student in proportion to the aid each is assumed to possess. The institution’s share is allocated among the Title IV programs, before the student’s share, in the following order: Federal Direct Unsubsidized Loan, Federal Direct Subsidized Loan, Federal Direct PLUS Loan, Federal Pell Grant, and Federal SEOG. Any remaining unearned aid is the responsibility of the student, must be collected from the student, and then must be allocated among the Title IV programs in the order indicated above.
Normandale will calculate its share of unearned Title IV funds and notify the student no later than 30 days after it determines that the student withdrew and will return the funds within 45 days. Students return their share of unearned aid attributable to a loan under the terms and conditions of the promissory note. Normandale may allow the student to repay unearned aid attributable to a grant under a payment arrangement satisfactory to Normandale. However, the student is not responsible for returning funds to any grant program to which they owe $50 or less.