Return of Funds Overview

The following steps are completed in order to determine if any return of funds is required.

Federal Title IV

• Determine the percentage of aid the student has earned
  The number of days the student completed divided by the total number of days in the term.
• Determine the amount of aid earned
  The percentage of aid earned multiplied by the amount of aid the student has for the term.
• Determine the difference between the amount of  aid the student was awarded for the term and the amount of Title IV aid the student earned.
  If the amount of aid earned is less than the amount of aid the student was awarded, then a return of funds will be necessary. However, if more than 60% of the student’s aid is determined to be earned, then they are considered to have earned 100% of their Title IV aid according to federal regulations

• Returning of funds required
  If the amount of aid earned is less than the amount of aid the student was awarded, meaning a return of Title IV funds is necessary, the funds are reduced in priority order.  Virginia Tech returns the funds to the appropriate program, which in turn results in the loss of aid and will generally create a bill for the student.

State and Institutional

• To determine the percentage of aid the student has earned, our office uses the BURSAR's Tuition Refund for Withdrawals & Registrations chart.  If a student's effective date falls under the semester day yielding a 90% tuition "Student Refund" then the student earns only 10% (100% - 90% = 10% earned).  Example:  $1,600 Commonwealth grant x10% = $160.  The return amount would be $1,440.