According to federal regulations, Title IV aid is earned in a prorated manner based on calendar days up to the 60% point of the semester. Title IV aid is viewed as 100% earned after that point in the semester. The instiution will perform a return of funds calculation to determine the amount of aid that was earned, up through the 60% point in each payment period or period of enrollment.  The institution will use the Dept. of Education’s proration schedule to determine the amount of return at the time of withdrawal.  All unearned funds will be returned to the Title IV program within 45 days.

The return of unearned Title IV aid applies to any student who meets the following criteria:

  1. The student completely withdraws (officially or unofficially) before 60% of the payment period.
  2. The student received Federal Title IV or state aid (Federal Stafford Loan, Federal Graduate PLUS Loan, but not Federal Work-Study). 

If a student withdraws before the 60 percent point of the semester during the period of enrollment (calculated using calendar days), the Seminary is required to calculate the amount of aid earned. Any unearned aid must be returned to the Dept. of Education, according to the provisions of the Higher Education Amendments of 1998 in the following order: 

  1. Unsubsidized Direct Loans
  2. Subsidized Direct Loans
  3. Direct Plus Loans 

A student is considered withdrawn per federal regulations when the student ceases enrollment during a semester, even if they completed courses in an earlier session during the semester.  This type of withdrawal can occur by student request or by administrative removal from course/s (suspension, lack of participation, etc.). Similarly, students that withdraw from all PTS courses are considered withdrawn. Students that cease attendance in courses without requesting a withdrawal (to the Registrar’s Office), can also be considered a withdrawal. 

Students that fail to receive a single passing grade (and have not otherwise officially withdrawn) are evaluated for possible unofficial withdrawal. Students that participate and attend courses but receive failing grades are considered as having earned 100% of their Title IV funds, since they have attended and participated but failed in spite of attendance and work.  Students that have ceased attendance with a failing grade are considered unofficially withdrawn and the Financial Aid Office will calculate a RT24 calculation to determine the amount of earned/unearned aid.

The student is considered to be “Officially” withdrawn on the date the student notifies the Registrar of his or her intent to withdraw in writing at: The withdrawal date is the date that the Registrar receives the written notice. The withdrawal date is determined by the Registrar’s Office. If a student does not officially notify the institution of his or her withdrawal, 50 percent of the payment period may be used (or the school may choose to use a documented attendance date that is past the 50 percent point). The calculation of return of these funds may result in the student owing a balance to the Seminary and/or the Dept of Education.

If the loan amount disbursed to the student is greater than the amount the student earned, unearned funds must be returned to the Dept. of Education. The student will be responsible for any balance due on the school account after Title IV funds have been returned. The student’s responsibility includes earned Title IV aid due to the lender and any tuition and fees due to the institution.  Any return of funds to the Department of Education are covered by the terms and conditions of the original master promissory note executed between the student and the Department of Education, and repayment of these funds will follow those terms and conditions. 

The student must return his or her portion of unearned Title IV aid owed to PTS within 45 days or they will be referred to the U.S. Department of Education for collection. The student will remain ineligible to receive future Title IV aid until his/her obligation is paid in full. 

If the Return of Title IV funds calculation results in a credit balance on the students’ account, the school must notify the student within 30 days allowing the student at least 14 days to accept or decline the post disbursement funds. Students must reply to accept or decline at: 423-478-7727 or  The student’s credit balance must be disbursed as soon as possible and no later than 14 days after the calculation of their return of funds. 

Students that accept a post-withdrawal disbursement will have their post-withdrawal disbursement applied to their student account first and any credit resulting from the disbursement will be sent to the student (via the means of disbursement as requested on file at PTS). The institution may apply a portion of the post-withdrawal disbursement funds for tuition and fees. For all other school charges, a student must give authorization to PTS to apply these funds to the student’s charges. Please note that it is in the student’s best interest to apply the post withdrawal disbursement to the school charges to reduce their school debt. If the student’s response it not within the allotted time frame or the student declines the post withdrawal funds, we will return any earned funds being held to the appropriate Title IV Program. 

The post withdrawal funds will be disbursed via direct deposit or by check via U.S. Postal Service (as requested by the student in writing on the Credit Balance Form in the Business Office).  If a direct deposit request is not on file, these funds will be mailed via U.S. Postal service directly to the student. If the credit balance check is not claimed by the student and is returned to the school, the funds will be returned to the Title IV Program. If the student does not claim the funds, the funds must be returned to the Dept. of Education no later than 240 days from the date the check was issued.

Students may authorize PTS to apply their post disbursement to their prior PTS educational expenses by completing an Authorization Form. This is available under the Forms page in the PTS Populi Portal and can be submitted to: .




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