A recipient of Federal Title IV financial aid who withdraws from school during a payment period or period in which the student began attendance will have the amount of Title IV funds he/she did not earn calculated according to federal regulations (34 CFR 668.22). Any student who withdraws will have Pell Grant recalculated based on the number of credits the student attempted. The percentage of Title IV financial aid that is earned for a payment period is the number of calendar days the student has been enrolled for the payment period up to the day the student withdrew, divided by the total calendar days in the payment period.
The percentage is multiplied by the amount of Title IV financial aid for the payment period for which the Title IV financial aid was awarded to determine the amount of Title IV financial aid earned. The amount of Title IV financial aid that has not been earned for the payment period, and must be returned, is the complement of the amount earned. The amount of Title IV financial aid earned and the amount of Title IV financial aid not earned will be calculated based on the amount of Title IV financial aid that was disbursed or could have been disbursed for the payment period upon which the calculation was based.
Once the amount of Title IV financial aid that was not earned has been calculated, federal regulations require that the school return a portion of the unearned funds equal to the lesser of the institutional charges multiplied by the unearned percentage of funds or the entire amount of unearned funds in the following order:
If the amount of unearned Title IV financial aid disbursed exceeds the amount that is returned by the school, the student (or parent, if a Federal PLUS Loan) must return or repay, as appropriate, the remaining amount. Any loan funds that must be returned by the student (or parent for a PLUS loan) are repaid in accordance with the terms and conditions of the promissory note. If the student is required to return unearned grant funds, the student is required to return the amount of the unearned grant funds that exceeds 50 percent of the grant funds received.
If the amount disbursed to the student is less than the amount the student earned, he or she is eligible to receive a post-withdrawal disbursement of the earned aid that was not received. The school will notify the student and or parent of post-withdrawal disbursement once an amount can be determined.
Withdrawal from the Program
You may withdraw from the school at any time after the cancellation period and receive a pro rata refund for the current course if you have completed less than 60 percent of the scheduled days through the last day of attendance in that course. The refund will be less a registration or administration fee not to exceed $250.00, and less any deduction for equipment not returned in good condition, within 45 days of withdrawal.
For the purpose of determining a refund under this section, a student shall be deemed to have withdrawn from a program of instruction when any of the following occurs:
For the purpose of determining the amount of the refund, the date of the student’s withdrawal shall be deemed the last date of recorded attendance. For the purpose of determining when the refund must be paid, the student shall be deemed to have withdrawn at the end of 21 days; unless the school obtains written confirmation from the student at the time of the withdrawal that he or she will attend a module that begins later in the same payment period.
For programs beyond the current “payment period,” if a student withdraws prior to the next payment period, all charges collected for the next period will be refunded. If any portion of the tuition was paid from the proceeds of a loan or third party, the refund shall be sent to the lender, third party or, if appropriate, to the state or federal agency that guaranteed or reinsured the loan. Any amount of the refund in excess of the unpaid balance of the loan shall be first used to repay any student financial aid programs from which the student received benefits, in proportion to the amount of the benefits received, and any remaining amount shall be paid to the student.
NOTE: A student who is on an approved leave of absence retains in-school status for the purposes of Title IV loans. However, the student should be aware that if he or she does not return from an approved leave of absence, the grace period of the loan may decrease, as the withdrawal date is set retroactively
For example, if a student withdraws on the thirtieth day of a semester 100 days in length, the student will have earned 30 percent of the aid received (30/100 = .30). The unearned 70 percent would be subject to the return policy and would have to be repaid within 45 days.