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:
- 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
- Number of Days Attended divided by Number of Days in the Term = Percentage of Aid Earned
- 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.
- Subtract earned aid from the aid that was actually disbursed. This determines the
amount of unearned aid that needs to be returned.
- Determine who is responsible for returning what amount.
- The Financial Aid Office returns the lesser of:
- total unearned aid; or
- 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.
- The Financial Aid Office returns the lesser of:
- 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%.
- The order in which aid is required to be returned is:
- Unsubsidized loan money
- Subsidized loan money
- PLUS loan money
- Pell Grant
- Institutional charges for the term $9608.96 (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
$10097 x 31%= $3130.07
Aid x Earned % = Earned Aid
Aid to Be Returned By School:
$9608.96 x 69% = $6630.18
Tuition x Unearned % = Aid to be returned by school
Aid to Be Returned by Student:
$10097 - 3130.07 = $6966.93
Aid - Earned Aid = Unearned Aid
$6966.93 - 6630.18 = $336.75
Unearned Aid - Aid to be returned by school
$3347 x 50% = $1673.50
Grants x 50%
$336.75 - 1673.50 = $-1336.75
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).
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.
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.
Military Tuition Assistance Refund Information
Military Tuition Assistance (TA) is awarded to a student under the assumption the student will attend for the entire approved term. If a student withdraws, the student may no longer be eligible for the full amount of TA funds. To comply with the new Department of Defense policy, any unearned TA funds will be returned on a proportional basis through at least the 60 percent portion of the period for which the funds were provided. We will recalculate TA eligibility for students who fail to attend, drop out, withdraw (officially or unofficially), or are dismissed prior to completing greater than 60 percent of the enrollment period. The enrollment period is computed from the “classes begin” date to the “last day of classes” date. TA funds are earned proportionally during an enrollment period, with unearned funds returned based upon when a student stops attending.
Recalculation is based on the percent of aid earned using the following formula:
Number of Days Completed = percent earned
Total days in the Enrollment Period
TA benefits will be recalculated in the same manner as a Title IV recalculation. Therefore, to determine how the calculation is performed, please review the same calculation above.