Middlebury Handbook

B.6.g. Return of Title IV (Federal) Funds

A student who withdraws after 60% of a term is entitled to retain all Title IV aid for that term. However, if the student withdraws prior to 60% of the term, unearned Title IV funds as determined by the federal policy must be returned.  Middlebury Institute Online’s refund policy (see above) does not control the return of federal financial aid funds. Therefore, a withdrawing student may still owe funds to the school to cover unpaid institutional charges. It is important for any student who receives financial aid to meet with the Student Financial Services office to determine the financial impact of withdrawing from Middlebury Institute Online. Middlebury Institute Online will charge the student’s account for any Title IV program funds that the institution is required by federal law to return. 

The return of Title IV aid is in the following order: 

  • Unsubsidized Direct Loans 
  • Subsidized Direct Loans 
  • Direct Parent PLUS Loans 
  • Federal Pell Grants 
  • SEOG Grants 

Reference: 
34 CFR §668.22(b), 34 CFR §668.22(c), 34 CFR §668.22(i), 34 CFR §668.22(b), 34 CFR §668.22(h), 34 CFR §668.22(a) (5) and (6), 34 CFR §668.164(j).