Federal Direct Subsidized Loan $1750
Federal Pell Grant $2675
Federal Smart Grant $2000

1) Divide number of days attended by number of days in term:

Calculation: 21 days / 108 days =
Result: Percentage of term completed 19%
Greater than 60% - All aid is earned; no further steps
Less than 60% - Use percent of term complete

2) Subtract percentage completed from 100:

Calculation: 100 - 19 =
Result: Percent of term not completed 81%

3) Multiply total federal aid by percent of term not completed:

Calculation: 5425 x .81 =
Result: Amount of aid that is unearned $4394.25

4) Multiply total allowable institutional charges by 81% to get amount of unearned aid to be returned by Pierpont:

Calculation: Total fees = 2900 x .81 =
Result: Amount of unearned aid to be returned by Pierpont $2349
(Pierpont returns: $1750 Direct Subsidized Loan; $599 Pell Grant)

5) Subtract unearned aid to be returned by PIERPONT from total unearned aid:

Calculation: 4394 - 2349 =
Result: Amount of unearned aid to be returned by student $2045
Student returns: $2045 Pell Grant

(All that is left to repay is the amount that PIERPONT had to repay. Student is not required to repay student portion of either grant program since the total in unearned grants is less than 50% of total federal grants.)

The federal regulations regarding Return to Title IV requires the following rules regarding return of federal aid to the programs: Order of repayment to programs is as follows:

  1. Federal Direct Unsubsidized Loans
  2. Federal Direct Subsidized Loans
  3. Federal Perkins Loan
  4. Federal Direct PLUS Graduate Loan
  5. Federal Direct Plus Parent Loan
  6. Federal Pell
  7. Academic Competitiveness Grant (not funded this year by Federal Budget)
  8. National SMART Grant (not funded this year by Federal Budget)
  9. Federal Supplemental Educational Opportunity
  10. Grant (FSEOG)
  • Pierpont returns its portion first; then the student’s portion is returned
  • Any loan amounts unearned from the student’s share are not required to be repaid immediately (will be repaid in the normal repayment process)
  • For grants, only the portion of unearned grants due from the student that exceeds 50% of the total federal grants received is required to be returned

Please keep in mind this repayment policy is applied before the institution’s refund policy. The school’s refund policy may reduce the amount owed to the school by the student for aid returned. It is important to note, a student who withdraws from school could owe federal financial aid as well as repayment back to the West Virginia Higher Education Grant Program and/or Promise Scholarship Program.

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