Refund & Repayment Policies
The federal government mandates that students who withdraw from all classes may only keep the financial aid they have “earned” by attending classes up to the time of withdrawal. Title IV funds that were disbursed in excess of the earned amount must be returned by the University and/or the student to the federal government. This situation could result in the student owing aid funds to the University, the government, or both.
The university calculates and returns Title IV funds according to Federal Title IV policy 34CFR 668.22. The amount of Title IV funds (other than Federal Work Study) that must be returned to the Title IV programs is based on the length of time the student was enrolled before withdrawing. This policy is effective for complete withdrawal from a semester in which a student receives Title IV federal funds.
If a student withdraws before 60 percent of the semester has elapsed, a percentage of Title IV funds will be returned in accordance with federal guidelines to the federal program based on the length of time the student was enrolled before withdrawal. After 60 percent of the semester has elapsed, the student is considered to have used all aid received for the semester.
The Return of Title IV Funds is dependent upon the students last date of documented activity in a class. For “official withdrawals”, “unofficial withdrawals” and in situations where the student earned no credits, the last date a faculty can document that the student participated in a class is used. If faculty are unable to document that the student ever attended class, the student did not establish eligibility as a “student” and 100% of all funds must be repaid.
A weekly report identifies Title IV aid recipients who have completely withdrawn from the university. Upon receipt of the last date of documented attendance from faculty the office will perform the Return of Title IV Fund calculation using Department of Education software. This calculation will be completed within 30 days of the student’s complete withdrawal. All funds will be returned and the student will be notified in writing regarding any refund or repayment within 45 days.
Allocating Returned Title IV (Federal) Aid
Funds that are returned to the federal government are used to reduce the outstanding balances in individual federal programs. Financial aid returned (by the University and/or the student or parent) must be allocated in the following order:
- Federal Unsubsidized Stafford Loan
- Federal Subsidized Stafford Loan
- Federal Perkins Loan
- Federal PLUS (Parent) Loan
- Federal Pell Grant
- Academic Competitiveness Grant (ACG)
- National Science & Mathematics Access to Retain Talent (SMART) Grant
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- Other Federal Loan or Grant Assistance
If funds still remain:
- State aid
- Institutional loans and scholarships
- the student
Students whose circumstances require that they withdraw from all classes are strongly encouraged to contact our office and their academic advisor before doing so. At that time, the consequences of withdrawing from all classes can be explained, clearly illustrated and understood.