Students who withdraw from coursework in a semester may be required to return a portion of the federal financial aid that had been applied to their account. The final amount of financial aid earned will be based on the period of time the student participated during the semester.
Students receiving federal funds who fully withdraw, either officially or unofficially, before the conclusion of the semester, are subject to a “Return of Title IV Aid” calculation established by the federal government. This calculation determines the portion of federal funds that were earned by the student up to the time of withdrawal. The withdrawal date (last date of attendance) will be determined by official withdrawal from classes by the student, or as reported by the instructor in cases of unofficial withdrawal. If the student withdraws beyond the 60% point in the semester, they are considered to have earned 100% of the federal financial aid they were scheduled to receive.
Students enrolled in classes that do not span the entire semester are considered withdrawn if, at the time of the withdrawal, they are not actively attending another class and have not provided written confirmation of anticipated return in the semester for a late start class.
Federal financial aid disbursed in excess of the earned amount must be returned to the federal government. The college will perform the “Return of Title IV Aid” calculation within 30 days of the date of determination that a student has completely withdrawn and return any unearned federal funds it is responsible for returning within 45 days of the date the school determined the student withdrew.
If the student previously received a refund from financial aid, which was to be used for education-related personal or housing expenses, they may be required to return a portion of those funds to the college. When the college returns a student’s unearned funds to the government, they will be billed for any balance due for any unearned refunds received or institutional charges that are now unpaid as a result of the return of federal funds.
If it is determined through a “Return of Title IV Aid” calculation that the Federal financial aid already disbursed to the student is less than the earned amount, the school will generate a post-withdrawal disbursement to the student no later than 45 days after the date of the school’s determination that the student withdrew.
Funds returned to the federal government based on the “Return of Title IV” Aid calculation referenced above, reduce the outstanding balances in individual federal aid programs. Federal financial aid returned by the student, the parent, or the college, are allocated in the following order:
- Federal Unsubsidized Direct Loan
- Federal Subsidized Direct Loan
- Federal Direct Parent Loan (PLUS)
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant (SEOG)
- TEACH Grant
If financial aid is awarded after the conclusion of the semester, federal aid is awarded based on the courses completed for that semester.
Students receiving Federal financial aid and considering withdrawing from registered coursework are encouraged to make an appointment with a Financial Aid Expeditor to examine the implications to their financial aid.