The Office of Student Financial Assistance is required by the federal statute to recalculate federal financial aid eligibility for students who completely withdraw, stop attending, or take a medical leave prior to completing 60% of a payment period or term.
The amount of Title IV funds that were earned by the student is directly proportional to the length of time he or she remained enrolled within the payment period, as indicated by the student’s withdrawal date. Funds are returned to the appropriate federal program based on the percentage of unearned aid.
If a student earned more aid that was disbursed to him/her, the institution would owe the student a post-withdrawal disbursement which must be paid within 120 days of the student’s withdrawal. The institution must return the amount of Title IV funds for which it is responsible no later than 45 days after the date of the determination of the date of the student’s withdrawal.