Refund Policy and Requirements for Withdrawals and Return of Federal Financial Aid
Students who receive Title IV federal student aid funds and who withdraw, drop out, are dismissed, cease attending classes, or take a leave of absence prior to completing 60 percent of a semester are subject to Federal Return of Funds requirements. The applicable Title IV financial assistance programs include Federal Pell Grants, Federal SEOG Grants, Federal Perkins Loans, Subsidized and Unsubsidized Federal Stafford Loans, and Federal PLUS Loans. For those students, the Office of Student Financial Assistance recalculates federal financial aid eligibility based on the following formula:
Number of days completed up to withdrawal date
Percent of Federal financial = -----------------------------------------------------------------------------------
Total number of days in the aid earned semester
The withdrawal date is defined as the actual date the student began the institution鈥檚 withdrawal process, the student鈥檚 last date of recorded attendance or the midpoint of the semester for a student who leaves without notifying the institution. An example of the withdrawal and refund policy follows.
For Example - For a semester that begins on August 30 and ends on December 15 (with no scheduled breaks), the denominator used to determine the amount of federal student aid earned by a student who withdraws fully would be 105 days. The 60 percent point of the semester would be October 31. A student who withdraws on October 1 (day 33) would have earned 33/105, or 31.43 percent, of the federal student aid disbursed for the semester. The Office of Student Financial Assistance will recalculate the student award and return 68.57 percent of the federal student aid to the federal student aid programs. If $1,000 in Federal Stafford Loan funds were disbursed, the University would be required to return $686 to the federal government of the funds. The student would then owe 91成人AV University $686, plus any other unpaid charges due.
The Return of Title IV Funds requirement is part of the Higher Education Amendments of 1965 as reauthorized in 1998 and applies to any student who received Title IV funding, as described above. Return of funds to the federal programs is not the same as 91成人AV University鈥檚 institutional policy on refunds and withdrawals and may result in a balance due the University even when the account balance was zero at the time of withdrawal.
The Return of Title IV Funds requirement does not apply to students who withdraw from one or more classes, but continue to be enrolled in at least one class during the semester. It does not apply to state or institutionally funded financial assistance. For students who withdraw fully during one of the institution鈥檚 published refund periods, any institutional awards previously distributed will be prorated in proportion to the amount of charges to be refunded. Students, who fail all coursework during a particular semester, are subject to Return of Title IV Funds based on last date of academic activity. Proof of academic activity beyond 60% of the term is needed in the Office of Student Financial Assistance to prevent the Return of Title IV Funds for the coursework failed.
Any individual who receives student financial assistance and is considering withdrawal from the University should contact the Office of Student Financial Assistance to determine the effect of withdrawal on aid eligibility and/or charges.