Title IV funds are federal student aid funds, which are from federal student aid programs administered by the U.S. Department of Education. The U.S. Department of Education regulations only allow schools to use your Federal Student Aid to pay for current academic year institutional charges. However, you can allow the use of surplus financial aid to pay for non-allowable charges that may be on your account.
Frequently Asked Questions
What are federal Title IV funds?
Title IV funds are federal student aid funds, which are from federal student aid programs administered by the U.S. Department of Education. The U.S. Department of Education regulations only allow schools to use your Federal Student Aid to pay for current academic year institutional charges.
Title IV funds include:
- Direct Subsidized/Unsubsidized Loans
- Direct Graduate PLUS Loans
- Direct PLUS Loans
- Federal Pell Grants
- Federal Supplemental Educational Opportunity Grants (SEOG)
Federal Title IV funds do not include scholarships from the University, the State or other private organizations.
- Mandatory fees
- Room and Board, if contracted with the University
Non-Allowable charges include:
- Parking fines
- Library fines
- Health insurance
- Bookstore charges
How are Title IV funds applied to my account?
The U.S. Department of Education requires that Title IV funds be applied to specific allowable charges. Allowable charges include: tuition, mandatory fees, and room and board billed by the University. If your total of Title IV funds exceeds the total of these qualifying charges, the University must refund that excess to you unless you give permission to do otherwise.
Does the authorization form need to be signed each year?
No. The authorization remains in effect while you are a student at Vermont State University. It may be rescinded or changed by sending a written request to the Financial Aid Office.
What does the authorization say?
“I authorize Vermont State University to apply my Federal Financial aid to any allowable non-institutional charges on my student account.”
- If a student says “Yes” to this question, federal funds can be used to pay for other charges such as student health insurance, parking fines, etc. If a student says “No,” a billing statement will be issued requesting payment for those other items. Please keep in mind that if you do not sign this statement, you, the student, will become liable for all charges not covered by financial aid.
Complete the Title IV Financial Aid Authorization through Self Service.
What if I don’t grant the authorizations?
- If you do not grant authorization, your federal financial aid and loans cannot be used to pay for charges other than tuition, fees, University housing and meal plans and any excess aid will be refunded to you. Therefore, you may receive a refund and may simultaneously be sent a bill for any charges that could not be paid with your Title IV aid. Receiving a refund does not indicate that there are no pending charges on your account.