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Withdrawing from School

What Happens to Financial Aid When A Student Withdraws from School?

If a student decides to withdraw from all of his/her classes after the semester begins, the Financial Aid Office must review the student's file to determine if the student has financial aid and if the student has earned the amount awarded.

If a student has financial aid, a Return to Title IV (R2T4) calculation must be performed to see how much aid the student has earned and how much must be returned to the funding source.

The Financial Aid Office must do the following:

  1. Determine the percentage of the term the student completed. If the student completed more than 60% of the term, the student has earned 100% of his/her financial aid. If the student has completed less than 60%, the student has only earned that percentage of financial aid. To determine the percent of aid earned, the Financial Aid Office will divide the number of days attended in the term by the total days in the term. Scheduled breaks of five or more days are not included (i.e. spring break).

    • Number of Days Attended divided by Number of Days in the Term = Percentage of Aid Earned

  2. Add all Title IV aid that was actually disbursed and the amount of Title IV aid awarded that could have been disbursed. Multiply the total aid by the percentage earned. This determines the dollar amount earned for the term.

  3. Subtract earned aid from the aid that was actually disbursed. This determines the amount of unearned aid that needs to be returned.

  4. Determine who is responsible for returning what amount.

    • The Financial Aid Office returns the lesser of:

      1. total unearned aid; or
      2. the total amount as determined by multiplying institutional charges by the percentage of aid unearned.

    • The student returns the difference between the total unearned aid and the amount returned by the institution.

  5. Return the unearned aid back to the Title IV programs in the order specified by law. The student is responsible for returning the amounts required to the appropriate funding source. Any grant money that the student is required to return is reduced by 50%.

  6. The order in which aid is required to be returned is:

    1. Unsubsidized loan money
    2. Subsidized loan money
    3. PLUS loan money
    4. Pell Grant
    5. FSEOG
    6. TEACH

Sample Calculation

  • Institutional charges for the term $7720 (includes tuition, housing, lab fees, bookstore charges)
  • The term has 75 days in the payment period.
  • Student withdrew on day 23.
  • 23 days divided by 75 days = 31% of earned aid

Aid Disbursed:

Total Aid $8080
Pell Grant $2155
SEOG 300
ACG 375
Sub Loan 1750
PLUS Loan 3500

Earned Aid:

$8080 x 31%= $2504.80
Aid x Earned % = Earned Aid

Aid to Be Returned By School:

$7720 x 69% = $5326.80
Tuition x Unearned % = Aid to be returned by school

Aid to Be Returned by Student:

$8080 - 2504.80 = $5575.20
Aid - Earned Aid = Unearned Aid

$5575.20 - 5326.80 = $248.40
Unearned Aid - Aid to be returned by school

$2830 x 50% = $1415
Grants x 50%

$248.40 - 1415 = $-1166.60
Unearned aid - 50% of grants = Aid to be returned by student

In this case the student is not required to return grant funds because the aid to be returned by student is less than 0. If the student would be required to return grant funds the student must make satisfactory repayment arrangements within 45 days. If no payment arrangements are made, the student's information will be submitted to the US Department of Education for collection.

When the aid is returned to the appropriate sources, the student will have an outstanding balance due to the University (amount of aid returned by the University).

Non Attendance

Federal and state guidelines require that a student be attending classes in order to receive financial aid. This is monitored at the end of each semester. No show students are identified by the faculty member to the Office of the Registrar. If indicated as a no show student aid will be adjusted accordingly.

Unofficial WD

If at the end of the term it is determined that the student is an "unofficial withdrawal", a Return to Title IV (R2T4) calculation must be performed at the 50% earned rate. The student's aid will be adjusted and he/she will have a balance due with the university.

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