If you withdraw from IU after your aid has been applied, the federal government requires us to calculate whether your aid must be repaid. We may return all or some of the money already applied to your student account. The amount that will be repaid will depend on when you withdraw and what charges are on your student account.
Return to Title IV (R2T4): What happens to your financial aid if you withdraw?
You may have to repay some money
About 45 days after you withdraw, we’ll send you a letter that lists the aid we’ve returned to federal Title IV programs on your behalf.
If you received federal aid funds directly (for example, as a refund) to be used for other educational expenses, you might have to return some of that money.
We’ll bill you for any IU charges that remain unpaid. Any credit balance will be refunded as soon as possible, but no later than 14 days after the R2T4 calculation is completed.
You may not be eligible for future aid
If you withdraw from IU, your eligibility to receive aid in the future may be affected. Make sure you understand what it means to make satisfactory academic progress.
Learn how to keep your grants and loansYour timing makes a difference
When you’re enrolled in classes, you “earn” your aid as you go through the semester. If you were to withdraw late in the semester, less aid would be repaid than if you withdrew earlier.
A student is to be considered withdrawn for Return to Title IV purposes if they are not actively attending a course when they withdraw from a course or set of courses and are not scheduled to attend a future course no more than 45 days from their initial withdrawal date within the active term. A withdrawal exemption is applied to students who successfully complete a module of enrollment that equals 49% or more of their overall intended enrollment or if they successfully complete coursework equal to or greater than the coursework required for IU's definition of a half time student for the payment period (six credit hours).
The withdrawal date for a student who withdraws from an institution that is not required to take attendance (e.g., IU Bloomington) is the earlier date of:
The date the student began the institution’s prescribed withdrawal process.
The date the student otherwise provided the school with official notification of the intent to withdraw.
The date the institution becomes aware the student ceased attendance.
The midpoint of the payment period or period of enrollment for which Title IV assistance was disbursed if the student ceases to attend without official notification and withdrawal.
At IU Bloomington, the office designated for a student notification to withdraw is Student Central.
If you receive a refund on a Federal Direct Loan, we’ll notify Direct Loan School Services if you withdraw before the semester starts. You’ll get a letter from School Services Loan Counseling asking you to return the loan proceeds, since you’re no longer eligible for the money.
If you withdraw before attending more than 60 percent of the semester or session, a percentage will have to be repaid to the federal programs from which you received aid. Aid will be adjusted in the following order:
- Unsubsidized Direct Loan
- Subsidized Direct Loan
- Direct Grad Plus Loan
- Direct Parent Plus Loan
- Pell Grant
- SEOG
- TEACH Grant
- Iraq and Afghanistan Grant
Post-withdrawal disbursement
A post-withdrawal disbursement must be made from available grant funds before available loan funds. If outstanding charges exist, the institution may credit your account up to the amount of outstanding charges with all or a portion of any post-disbursement grant funds. Post-disbursement loan funds to pay outstanding charges require the confirmation of the student or parent for a parent PLUS loan.
A post-withdrawal disbursement must be made within 180 days of the date the institution determines that the student withdrew. Indiana University disburses accepted Title IV Financial Aid (student loans) within 45 days of withdrawal as long as the student meets SAP and student eligibility requirements such as completion of MPN and Loan Entrance Counseling.
The institution must notify the student, and parent in the case of the parent PLUS loan, within 30 days of the institution's determination that the student withdrew to offer to disburse any grant or loan funds directly to the student, or parent in the case of a parent PLUS loan, that is not credited to the student's account. The funds may be accepted or declined. The parent or student has 14 days from the date of notification being sent to respond. With a timely notification from the student, or parent in the case of a PLUS loan, to confirm a post-withdrawal disbursement, the institution must disburse the funds within 180 days of the institution's determination that the student withdrew. For a late response from the student, or parent in the case of a PLUS loan, the institution may make or decline to make the post-withdrawal disbursement.
For any amount of a post-withdrawal grant disbursement not credited to the student’s account to cover allowable charges, the school must make the disbursement as soon as possible but no later than 45 days after the date of the school’s determination that the student withdrew.