Withdrawal from course(s)
Effective July 1, 2011, Federal Regulations pertaining to when a student has withdrawn from a module based semester states that if the student does not complete all courses they were scheduled to attend, the Return of Title IV (R2T4) Fund rules will determine how much financial aid the student can keep (earned).
For example, if the student withdraws from a course and is not currently attending or has a future registration within the semester, the student will be considered withdrawn from the semester and subject to an R2T4.
Withdrawal from the University
Students who elect to withdraw (disenroll) from the University during a semester must do so by dropping or withdrawing from all of their courses in the semester and then completing the Disenrollment Request Form. If a student withdraws or is administratively withdrawn from the University, financial aid may be adjusted based on the percentage of the semester they completed. A portion of the funds may be returned to the Department of Education.
- Up through the 60% point in each payment period or period of enrollment, a pro rata schedule is used to determine how much FSA Program funds the student has earned at the time of withdrawal
- After the 60% point in the payment period or period of enrollment, a student has earned 100% of the FSA Program funds
- The percentage of the payment period or period of enrollment completed is determined by the total number of calendar days in the payment period or period of enrollment for which the assistance is awarded divided into the number of calendar days completed in that period as of the day the student withdrew
- Scheduled breaks of at least five consecutive days are excluded from the total number of calendar days in a payment period or period of enrollment (denominator) and the number of calendar days completed in that period (numerator)
Title IV (Federal Financial Aid) funds credited to outstanding loan balances for the payment period or period of enrollment for which a return of funds is required must be returned in the following order:
- Unsubsidized Direct Stafford loans (other than PLUS loans)
- Subsidized Direct Stafford loans
- Graduate PLUS loans
- Federal Direct PLUS loans (dependent students)
If funds remain after repaying all loan amounts, those remaining funds must be credited in the following order:
- Federal Pell Grants for the payment period for which a return of funds is required
- Academic Competitiveness Grant & National SMART Grant
- Federal Supplemental Educational Opportunity Grant (FSEOG) for which a return of funds is required
- Other assistance under this Title for which a return of funds is required
Students will be notified of any refunds due to the Department of Education. Refunds to any of the Title IV or State programs will be paid within 45 days from the date of determination.
Return of Unearned FSA Funds
- The school must return the lesser of the following:
- The amount of unearned FSA Program funds; OR
- The amount of unearned institutional charges
- The student (or parent, if a Federal PLUS loan) must return or repay, as appropriate:
- Any FSA loan funds in accordance with the terms of the loan
- The remaining unearned FSA Program grant (not to exceed 50% of the grant) as an overpayment of the grant
- If a student earned more aid than was disbursed to him/her, the institution would owe the student a post-withdrawal disbursement which must be paid within 120 days of the student's withdrawal
- The institution is required to return the amount of Title IV funds for which it is responsible no later than 45 days after the date of the determination of the date of the student's withdrawal
- Students who have Federal funds returned as a result of a withdrawal and now owe money to the institution are notified by e-mail and a ‘Balance Due Hold’ is placed on the account
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