Federal Regulations Concerning University Withdrawal

If you withdraw or discontinue attending classes any time prior to the 60th percentile point of the semester (approximately 70 calendar days into the term), and you received federal financial aid (Subsidized, Unsubsidized, Plus or Perkins Loans, Pell and/or SEOG funds), federal regulations require repayment of your unearned aid. In other words, if you withdraw from the University one-quarter (25%) way through the term, 75% of the federal aid you received must be repaid. The 75% is considered unused or unearned.

The calculation used to determine how much aid a student has earned and need not repay is:

Days Completed

Total Calendar Days in the term = % Earned

The amount to be repaid is the remaining percentage or unearned percentage.

Using the above example, if you withdraw/discontinue attending class on the 29th calendar day of the term, the percentages of aid earned and unearned would be calculated as follows:

29 (total days completed)

116(total days in the term) = 25% earned

100% - 25% = 75% unearned aid, required to be repaid to the federal aid funding sources

Repayment of the unearned portion of aid received is a shared responsibility of the University and the student, based on two main assumptions:

1) Federal aid is first used to pay University charges.

2) The school's share of the unearned aid is to be repaid first.

The University's obligation is the lesser of the unearned percentage of aid multiplied by the total institutional charges for the term OR the unearned percentage times the total amount of Title IV aid disbursed. You, the student, will be required to pay an amount equal to the unearned percentage multiplied by the amount of aid overage dollars you personally received.

The good news is, loan dollars are excluded from this calculation on the assumption that you will follow loan repayment according to the terms of the loan(s). Further repayment of Grant funds will be reduced by 50%, after the unearned calculation is determined.

Regulations stipulate the student must repay, to the University, the unearned aid amount in full within 45 days of the school's notification of repayment requirement. Failure to repay will result in denial of any future federal aid plus the usual hold on official transcript, diplomas and future registration.

Last Modified: 1/24/17 11:33 AM