Refunds Upon Withdrawal As A Degree Seeking Student
When a student registers, the University assumes full-year enrollment, provides facilities, and executes contracts to provide for the student for the entire year. There are federally mandated refund calculations that apply when a student withdraws. When a financial aid recipient withdraws, refunds must be returned to various financial aid funds as well as to the student. The actual cash refund to the student is pro-rated by the amount actually paid or owed by the student. If a student with financial aid is subject to a refund upon withdrawal, that student may not be eligible for a cash refund. The student, however, frequently has refunds back to loans, thus reducing indebtedness. Upon withdrawal, if the student has a cash refund due it will be processed as quickly as possible, but will require a minimum of three weeks. Refunds are calculated based only on charges for tuition, fees, room, and board.
No refunds will be made unless the student withdraws from all courses in which registered. For refund purposes, the date of withdrawal shall be the date that the student begins the University’s withdrawal process or provides notification of intent to withdraw. In the event that a student quits without formally withdrawing, the withdrawal date will be the midpoint of the payment period. If the student quits and has attended any classes, then that is considered to constitute a withdrawal calculation. In the event that a student withdraws from all classes or stops attending all classes, and continues to live in the dorm, room and board will be charged directly to the student for the time he or she remained in the dorm and on the board plan.
Students who give notice to withdraw from the University before the end of the term will have charges and refunds calculated on the basis of the percentage of days completed in the term (i.e. payment period). Students who withdraw within the 60% time frame will have charges and refunds calculated. Students who withdraw after 60% of the payment period is completed will be charged for the entire semester.
The amount of Title IV and other aid which must be returned to a program source will be calculated and charges will be adjusted by the aid earned in order to determine the total amount for which the student is responsible for payment to the University. There is a $100 administrative withdrawal fee.
There are two formulas which may be applied:
- The Return of Title IV Funds
- The Return of Institutional, State and Outside Funds
- Calculated as a secondary formula for those who have Title IV funds
- Calculated as the primary formula for those who do not have Title IV funds
A. Return of Title IV Funds (34CFR parts 668 and 682)
(A copy of the calculation form may be obtained from the Business Office for review.)
- Determine the percentage of aid earned by a Title IV recipient by calculating the percentage of the period that the student completed. Use calendar days and exclude scheduled breaks of at least 5 days in length. Beyond 60%, there will be no recalculation of charges or refunds and the student will be charged for the entire semester.
- Determine the amount of earned Title IV aid by applying the earned percentage to the total Title IV aid that was or could have been disbursed to the student.
- Determine the amount of unearned Title IV aid by subtracting the earned aid from awarded Title IV aid (disbursed or could have been disbursed, excluding Federal Work Study). The difference is the amount of Title IV money that must be returned.
- Distribute responsibility for returning unearned aid between the school and the student. (Any portion of the student’s share that is allocated to a loan program is repaid under the terms and conditions of the loan as specified in the promissory note.)
- Allocate unearned aid back to the Title IV programs. Unearned funds are allocated to the Title IV programs from which the student received assistance, in the following order:
- Unsubsidized Federal Direct Loan
- Subsidized Federal Direct Loan
- Federal Perkins Loan
- Federal Plus Loan
- Federal Pell Grant
- Federal SEOG Grant
- Other Title IV grant or loan assistance if applicable
The calculated charges, based on the percentage of the period completed, minus the earned Title IV funds, are now submitted to the calculation below which determines how much other assistance must be returned.
B. Return of Institutional, Outside and State Grant Funds
- Determine the percentage of the period that the student completed
- Determine the total charges for the payment period by multiplying the percentage of period completed by the total amount of institutional charges (i.e. tuition, fees, and room and board)
- This will be the charge used for the remaining calculations if the student had no Title IV aid.
- If the student had Title IV aid, the amount used for this calculation will be the charge from the calculation above minus the Title IV aid which can be retained as a credit to the student account.
- Deduct the administrative fee of $100.00 from the pro-rata charge used in the above calculation.
- Determine the amount of earned non-federal aid by applying the earned percentage (step 1 above) to the total amount of Institutional, Outside, and State Grant Funds that were or could have been disbursed to the student.
- Determine the amount of unearned aid by subtracting the earned aid from aid that was already or could have been disbursed.
- Allocate unearned aid back to other programs in the following order:
- Institutional Grants and Scholarships
- Institutional Loans
- Outside or Private Loans
- Outside or Private Grants or Scholarships
- State Grants
- Determine the amount the student must pay for the percentage of the payment period completed:
$ Pro Rata Charge for period completed (less $100 administrative fee)
minus $ Earned Title IV aid (if applicable)
minus $ Earned other aid
equals $ Owed by the student
- Compare the amount owed by the student with the amount actually paid. Either refund to or collect from the student to satisfy charges for the payment period.
After the refund calculations have been completed, any remaining outstanding charges will be added to the final bill.