Skip the navigation menus and go to this page's content.

REFUND & REPAYMENT POLICIES FOR FINANCIAL AID RECIPIENTS

The Higher Education Amendments of 1998 require that if a recipient of federal financial aid withdraws from a school during a semester in which the recipient began attendance, the school must calculate the amount of federal financial aid the recipient did not earn and those funds must be returned.

Click here to determine if you owe funds to the Department of Education

WITHDRAWAL DATE

The withdrawal date is:

  • The date that student began the withdrawal process as defined by the school:

  • The date that the student otherwise provided official notification to the school of the intent to withdraw; or

  • If the student did not begin the withdrawal process or otherwise notify the school of the intent to withdraw, the midpoint of the semester for which federal financial aid was disbursed or a later date documented by the school.

CALCULATION OF FEDERAL FINANCIAL AID EARNED

The percentage of the semester completed is the total number of calendar days in the semester divided by the number of days completed by the student as the withdrawal date. The student has earned 100% of the federal financial aid received if the withdrawal date occurs after 60% of semester has been completed. If the student's withdrawal date occurs before 60% of the semester has been completed, the percentage of federal financial aid earned is equal to the percentage of the semester completed as of the withdrawal date.

RETURN OF UNEARNED FEDERAL FINANCIAL AID FUNDS

If the student receives more federal financial aid funds than the amount earned, the school, or the student or both, must return the unearned funds as required, and in the order specified below:

The school must return the lesser of:

  • The total amount of unearned aid; or
  • The amount of institutional charges incurred for the semester multiplied by the percentage of unearned aid.
  • The student must return 50% of the remaining grant funds.

METHOD OF RETURN OF UNEARNED FUNDS BY THE STUDENT

Repayment of grant funds will be due to the school within 45 days of repayment notification.  Grant funds not repaid after 45 days will be referred to the Department of Education for collection.

ORDER OF RETURN OF FEDERAL FINANCIAL AID FUNDS

  1. Federal Pell Grant
  2. Federal Supplemental Educational Opportunity Grant (FSEOG)
  3. Leveraging Education Assistance Partnership (LEAP)

SAMPLES OF TITLE IV FUNDS REPAYMENT

    A student completes 40 days of a 111 - day semester. The student has received a total of $2,150 in federal financial aid as follows: $1650 Federal Pell Grant; $500 Federal SEOG. The students total charges are $396.
    1. % of earned federal aid = 40/111 = 36%
    2. % of unearned federal aid = 100% - 36% = 64%
    3. Total amount of unearned federal aid = 64% x $2,150 = $1376
    4. Amount of unearned federal aid attributed to school charges = 64% x $396 = $253. The school must return $253 to the Federal Pell Grant program.
    5. Amount of unearned Federal aid attributed to non-school charges = $1,376 - $253 = $1,123 is allocated to the Federal Pell Grant program. Federal regulation only requires that the student pay 50% of this amount. This means that the student must pay $561.50 back to the Federal Pell Grant program. The school will bill the student.
    6. The student owes $253 for school charges and $561.50 for non-school charges for a total of $814.50.
  1. A student completes 69 days of a 111 - day semester. The student has received a total of $2,075 in federal financial aid as follows: $1,575 Federal Pell Grant; $500 LEAP. The students total school charges are $401.
    1. % of earned federal aid = 69/111 = 62%
    2. The student has earned 100% of the federal financial aid received because the student completed over 60% of the semester.

    Student Financial Assistance / Veterans Services Homepage


    Disclaimer Notice