(This policy is based on 34 CFR, Section 668.22 of Title IV of the Higher Education Act of 1965, as amended.)
This requirement applies to you ONLY if:
1. You receive federal student aid, and
2. You withdraw prior to completing 60% of the period for which the aid was provided.
The federal law requires federal aid recipients to "earn" the aid they receive by staying enrolled in college at least half time. Students who withdraw prior to completing 60% of the semester for which they received federal student aid may be required to return some or all of the aid they were awarded.
The law assumes that you used the Title IV student aid to pay your institutional charges -- tuition, fees, dorm room, and board. Thus, if you withdraw prior to completing 60% of the semester for which you were awarded aid, a pro-rata amount of your aid must be returned to the federal government.
First, the University will restore to the appropriate federal fund source a proportional share of the institutional charges that you paid. In general, the effect of this "return of Title IV aid" by the institution will be to reduce your outstanding loan balance. Second, if the amount returned by the University is not enough to repay the entire "unearned" amount of student aid according to the length of your enrollment, you will be required to return portions of the federal student aid you received to pay non-institutional charges.
Amounts that must be returned to federal aid sources, whether by the University or by you, will first be applied to your federal loans. With respect to any amount you owe after the University has returned its share, you will be permitted to repay loans based on the original terms of the loan. In the event you received a grant or scholarship from a Title IV source you may be required to return portions of the grant or scholarship. In the case of "unearned" portions of federal grants or scholarships, you will be expected to pay 50% of the "unearned" portion immediately.
Any refund due to you from the University for amounts you paid to cover institutional charges, will first be applied to obligations to return "unearned" aid. Thus, portions of institutional refunds may be applied on your behalf to your outstanding Stafford or Perkins loan or to the federal portions of your grant or scholarship and not actually refunded to you.
DISTRIBUTION ORDER OF REFUNDS -- Refunds will be credited back to student aid program accounts in the following order:
Title IV programs
1. Unsubsidized Federal Stafford Loans
2. Subsidized Federal Stafford Loans
3. Federal Perkins Loans
4. Federal PLUS Loans
5. Federal Pell Grants
6. ACG Grant
7. Smart Grant
8. Federal SEOG program
9. Teach Grants,
Other refunds will be credited to
1. State, private or institutional aid
2. The student
Refund Appeals Procedures
Students contesting the refund policy may file a refund appeals which may be obtained in the Comptroller’s Office, 202 Dossett Hall. It is the student’s responsibility to provide written documentation substantiating your reasons for the appeal. Withdrawals or reductions in course load due to personal illness/injury require a statement from a licensed medical physician stating withdrawal was necessary due to the health of the student; a death in the immediate family can be verified with a copy of the obituary. Immediate family includes spouse, child, stepchild, parent, stepparent, foster parent, parent-in-law, sibling, grandparents, and grandchildren. Other reasons must be supported by written documentation.