The University of Reading will follow the requirements of the Federal Student Aid Programme Return of Title IV Funds regulations. The policies stated below will apply to all US Federal Loan Aid recipients when the University is dealing with a student’s Federal Loan funds and may differ from the normal University procedures. Students may receive a copy of the University’s Title IV Refund Policy from the Student Financial Support Team USLoans@reading.ac.uk or by downloading it here.
Students may also need to refer to the University’s Satisfactory Academic Progress (SAP) Policy which contains a section specifically related to US Federal Aid Recipients.
Requirements for Title IV programme funds when students withdraw are separate from any refund policy that the University may have. Therefore, the student may still owe funds to the University to cover unpaid institutional charges. The University may also collect from the student any Title IV programme funds owed to the University that it was required to return to the funding source. Students wishing to withdraw from the University before completing their studies must complete the appropriate withdrawal process. This process will result in an official withdrawal date, which will be used for any refund or return of funds calculation. When a student withdraws without notifying their Tutor, Department, Student Financial Support or other relevant contact, the University will use all possible means to determine the latest date of campus activity. This may include, submitting an essay, attending a class where attendance is taken, meeting a tutor or use of the library facilities. Should the administration be unable to identify a firm date by these means, then the date will be determined as the 50% point of the last payment period. In calculating Return of Title IV funds, the Student Financial Support Team will use the formulae provided by the US Department of Education. This means that the University will return any funds that the student has not earned on a pro rata basis. For example, if a student completes 30% of the payment period, any assistance the University has received over this 30% will be repaid. On this basis any unearned funds that the student has received must be returned. All such funds must be returned to the lender within 45 days of the date when the University determined that a student withdrew from studies or suspended studies.Students who have questions regarding their Title IV funds may contact the Federal Student Aid Information Centre. Title IV funds will be returned in the following order:
Unsubsidised Federal loans Subsidised Federal loans PLUS Loan funds The University operates a year long period of study; divided into three terms. The period of enrolment for all calculations is therefore the term.
Once the student has completed more than 60% of the payment period (term), all the assistance that the student was scheduled to receive for the period is considered to have been earned. If the student did not receive all the funds that were earned, he or she may be due a post-withdrawal disbursement. The University may automatically use all or a portion of the post-withdrawal disbursement (if the student accepts it) for tuition fees, and any other charges contracted by the student with the University. The student may choose to decline the loan funds so that additional Federal Loan debt is not incurred. However, it may be in the student’s best interest to accept the disbursement and allow the University to keep the funds owed in order to reduce their indebtedness to the University. If the student received more assistance than was earned, the excess funds must be returned by the University and/or the student. First-time, first-year undergraduates who do not complete the first 30 days of their programme before withdrawal will not earn any loan funds that he or she would have received had the student remained enrolled past the 30th day. If the student receives (or the University receives on behalf of the student) excess Title IV programme funds that must be returned, the University must return a portion of the excess equal to the lesser of: The University charges multiplied by the unearned percentage of the funds; or the entire amount of excess funds. Upon withdrawal the University will notify the student of the amount of Title IV programme funds that will be returned. For further information, advice and support, please contact the Student Financial Support Team on USLoans@reading.ac.uk