Return of Financial Aid Funds (Return of Title IV Funds Calculation)
Federal financial aid regulations require that attendance be documented for students at colleges and universities that distribute federal aid (Title IV) funds.
Students earn their aid based on the number of days they attend class. Federal regulations state that a student must attend 60% or more of a semester to retain all awarded financial aid.
Until a student reaches the 60% point of a semester, only a portion of their aid has been earned. After the 60% point, they are eligible for all aid disbursed or that could have been disbursed, provided eligibility criteria have been met.
Students who withdraw entirely on or before the 60% point of the term will have their aid eligibility recalculated and prorated based on the percentage of days the student attended classes during the enrollment period. This process is called a Return to Title IV Funds Calculation.
The percentage of aid earned is calculated by dividing the number of days the student attended classes during the enrollment period by the total number of calendar days in that period. A student earns aid solely based on the time spent attending classes or participating in an academically related activity.
Students who walked away (stopped attending all classes) and didn't formally exit the university will have a Return of Title IV Funds calculation performed using faculty-reported class attendance records. This can occur at any point during the semester, in the following semester, or after a student leaves.
Federal law requires the university to return unearned funds to the authorizing state or federal agency. Any funds owed to the government as a result of this calculation must be repaid, or arrangements must be made to pay, to remain eligible for aid.
Official Withdrawal and Leave of Absence
All students must leave the university through the official withdrawal/leave of absence procedures.
Before taking a leave of absence or withdrawing, students should contact the Student Navigation Center for assistance in understanding the implications and responsibilities of withdrawing or taking a leave of absence on their accounts. A student who withdraws may have an outstanding balance with Salem State that they are responsible for.
The Financial Aid Office will determine financial aid eligibility and may prorate aid in accordance with regulations and program guidelines. The date a student begins the withdrawal/leave of absence process is the date the Financial Aid Office will use to determine the student's exit date.
Students who do not reenroll within six months of taking a leave of absence or withdrawing may lose their federal Direct Loan grace period.
Undergraduate students must complete the appropriate paperwork with Academic Advising in the Center for Academic Excellence, located on the first floor of the Berry Library. Graduate students must contact the School of Graduate Studies and complete the appropriate paperwork. Continuing and Professional Studies (CPS) students, also known as Evening students, are not required to take a leave of absence unless they receive financial aid.