Return of Title IV Funds

Students receiving financial aid have the responsibility to follow the college's withdrawal procedures as outlined in the University of Michigan-Dearborn catalog. The Higher Education Act requires the college to calculate a Return to Title IV funds on all federal financial aid students who withdraw (officially or unofficially) from all classes. A schedule is used to determine the percentage of the semester the student attended based on the withdrawal date/last date of attendance. The percentage of the semester the student attended is calculated as follows:

Number of days in attendance ÷ Number of days in Payment Period

The number of days counted includes all calendar days in the Payment Period including weekends and holidays, but excludes college breaks of five or more days. The percentage of the semester the student attended is used to calculate the amount of the student's earned versus unearned federal aid funds. The unearned portion of federal aid funds received must be returned to the appropriate aid program in accordance with the order of return as mandated by law. The order of return is: Federal Direct Unsubsidized Stafford Student Loan, Federal Direct Subsidized Stafford Student Loan, Federal Direct PLUS Loan, Federal Pell Grant, Federal SEOG Grant, other Title IV aid. The college is responsible for returning the lesser of unearned Title IV aid or unearned institutional charges. Unearned institutional charges are based on the percentage of the semester the student did not attend. The college is responsible for its return of funds first, followed by the student's return of funds. The student is responsible for returning:

(Amount of unearned Title IV Aid - Amount of aid school returns) ÷ Amount Student Returns

If the student did not receive all of the funds that they earned according to the calculation, they may be due a post-withdraw disbursement. If the post withdrawal disbursement includes loan funds, the University must get authorization from the student within 14 days before it can disburse the funds. A University may automatically apply all or a portion of the post-withdrawal disbursement of grant funds to an outstanding tuition and fees.

The University must return its portion of unearned Title IV aid (loan and grant) to the appropriate federal program within 45 days of the student's withdrawal date as determined by the Office of Financial Aid & Scholarships. If the amount the student returns includes a federal loan program, the student is responsible for repayment of the loan in accordance with the terms of the loan program. If the amount the student returns includes grant aid, the student must repay 50% of the grant money received, rather than 100%. The student must return unearned grant aid to the college within 30 days ti aviud kate fee assessnents. Students who have been reported to ED by another institution for an Overpayment Status should contact the ED to make payment arrangements to repay the necessary grant funds.

Non-Attendance in Courses

Students who stop attending the University of Michigan-Dearborn may not receive further financial aid disbursements, may lose some or all of the aid that has already been disbursed to their account, may be responsible for repayment of unpaid charges, and may be considered in overpayment status with ED. Students who stop attending all classes without officially withdrawing from the college will be subject to a Return to Title IV Funds calculation at the end of the semester, based on their last date of attendance as determined by faculty.

If it is determined that a student has never attended a course(s), a reduction of some or all financial aid may be necessary. At the time the Office determines a non-successful grade, faculty will be contacted to confirm a last date of educational activity. A non-response from faculty requires the Office of Financial Aid & Scholarships to assume the student has never attended course(s).

Student Consumer Rights and Responsibilities

Section 493.A of the Higher Education Act requires post-secondary educational institutions to disseminate relevant, candid information on student financial aid programs available at the college. These rights and responsibilities may be found in the U.S. Department of Education (ED) publication entitled Funding Your Education: The Guide to Federal Student Aid. This guide is available online at Any change in a student’s financial situation, address, or school enrollment must be reported to the Office of Financial Aid & Scholarships. Students have the right to request a review of their financial aid package when a change in family or personal circumstances occurs. Students also have a right to review their financial aid records and may do so during counseling hours.

Information Dissemination and Report Disclosure

The U.S. Department of Education requires UM-Dearborn to disseminate information and disclose certain information to students. This information includes, but is not limited to: Voter Registration, Equity in Athletics, Campus Crime and Security, Completion and Transfer-Out Rates, and Drug and Alcohol-Free Campus policies. For further information on the listed topics, please refer to the University website at