Return of Title IV Funds (Earned versus Unearned Aid)
Within 45 days from when you discontinue enrollment, the Financial Aid and Scholarships Office must calculate the amount of financial aid you have earned prior to the date the action was filed. Any aid received in excess of the earned amount is considered unearned. The unearned financial aid must be returned to the respective federal programs no later than 45 days from when the student seperated from UC Davis. The calculation is based upon only the amount of Title IV Aid for which you were eligible. State and UC Davis policy uses a similar formula to calculate how much state and university aid is earned if the student discontinued enrollment before the end of the quarter.
Calculating Earned Financial Aid
The amount of earned financial aid is calculated on a daily basis from the first day of classes. The process uses calendar rather than business days. Earned aid is determined by taking the number of days attended before enrollment ended divided by the total number of days in the term (first day of instruction until the last day of finals, excluding spring break for semester students).
Return policies apply to students that withdraw on or before the 60% point of the term. For a student who withdraws after the 60% point-in-time, there is no unearned financial aid.
See examples for calculating the percent of earned aid below.
Once the earned and unearned aid percentages are determined, the next step is to calculate the dollar amount of unearned aid that must be returned. The Return amount is determined by multiplying the unearned aid percentage by the total of all Title IV aid received.
Unearned Aid Percentage
X Total of all Title IV Funds Received
= Total Unearned Aid
School Portion of the Return
The amount of unearned aid that must be returned by UC Davis is a percentage of the institutional charges for the term. Once the dollar amount of the school portion of the Return is determined, it is compared to the total amount of all unearned aid. If the school portion is less than the total unearned aid, then UC Davis must return the amount of the school portion. If the calculated school portion exceeds the total unearned aid, then UC Davis must return the amount of the total unearned aid.
Financial aid will be returned to the aid program from which it came. If returned to a loan program, your outstanding balance will be reduced by the amount of the return. Aid will be returned in the following order:
- Unsubsidized Direct Loan
- Subsidized Direct Loan
- Federal Perkins Loan
- Direct PLUS Loans
- Federal Pell Grants
- Federal Supplemental Educational Opportunity Grant
- Iraq and Afghanistan Service Grant
Late or Post-Withdrawal Disbursement
Students may be eligible for a late or post-withdrawal disbursement if they have accepted aid that did not disburse at the time of withdrawal from UC Davis.
If eligible, the UC Davis Financial Aid and Scholarships Office will send notification of the action required to either accept or decline a portion, or all, of the late disbursement. If no response is received within approximately two weeks of notification, the award will be canceled.
Fee Refund Versus School Return Amount
In most cases, the amount of the fee refund received will be less than the amount of the school Return portion of Title IV funds. When you discontinue enrollment, a balance will be created on your student account at UC Davis for the difference between the fee refund and the Return amount. You will be responsible for paying this balance in addition to any other balance created from the student portion of the Return.
Student Portion of Return of Title IV Funds
After the school returns the correct amount of aid, any amount of the total unearned aid that remains becomes the student portion of the Return. The student portion of the Return is calculated by subtracting the amount of the school Return from the total unearned aid.
Total Unearned Aid
(Subtract) School Return Amount
(Equals) Student Portion of Return
Depending on the remaining sources of aid after the school Return, the student portion of the Return is distributed back to the aid program from which it was awarded as follows:
- Any amount of the Return allocated to loans is repayable after you leave UC Davis and enter repayment according to the terms and conditions of those loans. You will not be billed for these funds upon discontinued enrollment.
- Any amount allocated to federal Title IV grants are subsequently decreased by 50%. This adjustment is an effort to reduce the impact of discontinued enrollment on those students receiving grant funds. UC Davis will return these funds on your behalf and you will be responsible for reimbursing UC Davis for this return.
Federal Formula used for State Cal Grants and Institutional Aid
Whether or not you are receiving any of the types of federal aid listed, students that received any non-federal aid (listed below) are required to go through a similar calculation to determine the portion of these funds that are unearned. Aid is returned in the following order:
- Cal Grants
- Institutional Loans
- University Grant
Sample of Return to Title IV Calculation
2017-2018 undergraduate student who withdrawals during Week 3 of the Fall quarter:
- Number of Days Attended: 20
- Number of Days in the Quarter: 80
- Earned Financial Aid: 25%
- Unearned Financial Aid: 75%
|Types of Aid
||Financial Aid Disbursed Fall Quarter
||Total Aid Earned
(Student eligible to keep)
|Total Aid Unearned
(Must be recouped)
|UC Davis Campus Fee Grant