Title IV Credit Balance
Title IV aid is federal aid that is awarded to a student as a result of completing the Free Application for Federal Student Aid (FAFSA) and submitting required documents to verify a student's eligibility for this aid. Title IV aid consists of the following:
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- Federal Direct Perkins Loan
- Federal Direct Loan
- Federal Direct PLUS Loan
When a student's Title IV aid fund disbursements exceed allowable institutional charges: tuition, fees, and housing and meal plan charges billed by Muhlenberg College, the excess amount is refunded to the student, unless the credit balance is the result of a Federal Direct Parent PLUS Loan, then it is refunded to the parent borrower. This refund occurs no earlier than the first day of classes but no later than the seventh day.
If a student wishes to keep a Title IV credit balance on their account to pay non-institutional charges such as book store charges, library and parking fines, other fees, penalties, and prior-year charges, up to $200, the student must authorize the application of these funds to non-institutional charges by completing a Title IV Credit Balance Authorization Form in the Office of Financial Aid. If the student does not complete this authorization, the students will be required to pay for these charges. However, in accordance with Federal Regulation 34CFR 668.165 (6) (b) (5) (iii): Because Title IV funds are awarded to students to pay current year charges, notwithstanding any authorization from the student or parent, any remaining Title IV credit balance of Federal Student Aid funds remaining by the end of the last payment period in the award year for which they were awarded must be refunded. For most traditional Muhlenberg College students, this would be the end of the Spring Semester.
