A calculation is made for all financial aid recipients to determine whether a student who completely withdraws during a term has “earned” the monies disbursed. A student “earns” his aid based on the period of time he remains enrolled. During the first 60% of the term, a student “earns” student aid funds in direct proportion to the length of time he remains enrolled. Beyond the 60% all aid for the term is considered earned.
The Registrar’s Office determines the date of withdrawal.
The percentage of the period that the student remained enrolled is derived by dividing the number of days the student attended by the number of days in the term. The withdrawal date is:
- The date the student notified the University of intent to withdraw (initiation of withdrawal process) or
- The midpoint of the term for a student who leaves without notifying the University of their intent to withdraw.
The responsibility to repay unearned aid is shared by the University and the student in proportion to the aid each is assumed to possess. Faulkner will use the Return of Title IV Aid worksheet to determine the amount the student and/or the University must refund to the appropriate programs. The Financial Aid and Business Offices will work cooperatively to verify the accuracy of each refund calculation.
Once the University’s portion of the return of funds has been calculated, the Financial Aid Office will reduce the student’s original financial aid award and return the funds within 30 days to the appropriate program(s) in the order specific in this policy. If this creates a “charge” on the student’s account in the Business Office, the Business Office will notify the student of the obligation. The student will be responsible for paying the debt to the University immediately. The student will not be allowed to register, receive an official transcript, and/or receive future financial aid until the debt has been paid in full.
Once the student’s portion of the return of funds has been calculated, the Business Office will notify the student of the amount he has to repay. The student may select one of the following repayment options:
- The student may pay Faulkner the full amount of his debt and Faulkner will return the funds to the appropriate programs within 45 days, or
- The student may contact the U.S. Department of Education to establish a repayment plan.
The student will remain eligible for Title IV funds for 45 days from the date the University sends a notice to the student of the overpayment. To continue eligibility past 45 days, the student must pay the overpayment in full to Faulkner or make satisfactory arrangements to repay with the U.S. Department of Education on the 46th day. The University will report the student’s overpayment to the U.S. Department of Education, and if the student must return federal loan funds, the student’s lender will be notified of the amount owed by the student.
Unearned Title IV aid shall be returned to the following programs in the following order by both the student and the University:
- Unsubsidized Stafford Loan
- Subsidized Stafford Loan
- Perkins Loan
- Parent Loan to Undergraduate Students (PLUS)
- Federal Pell Grant
- Academic Competetiveness Grant
- National Smart Grant
- FSEOG
- Other Title IV Programs
If the amount disbursed to the student is less than the amount the student earned, the amount may be considered a post-withdrawal disbursement. Post-withdrawal eligibility can be used to credit outstanding charges on a student’s account. Faulkner has 30 days from the date that the University determined the student withdrew to offer any amount of the post-withdrawal disbursement to the student (or parent for PLUS). The student (or parent) may accept or decline some or all of the post-withdrawal disbursement that is not credited to the student’s account. The student (or parent) must respond within 14 days from the date that the University sends the notification to be eligible to receive the post-withdrawal disbursement. If the student (or parent) does not respond to the University’s notice, no portion of the post-withdrawal disbursement that is not credited to the students account may be disbursed.