Federal Student Aid (FSA), also known as Financial Aid or Title IV funding, is awarded under the assumption that a student will complete course(s) for the entire semester and/or payment period for which the funds were awarded. When a student ceases attendance, officially and/or unofficially, in a course, regardless of the reason, the student may no longer be eligible for the full amount of Title IV funds originally awarded.
When a student withdraws from all courses, regardless of the reason, s/he may no longer be eligible for the full amount of federal funds originally awarded. The return of funds to the federal government is based on the premise that a student earns financial aid in proportion to the length of time during which s/he remains enrolled. A pro-rated schedule determines the amount of federal student aid funds s/he will have earned at the time of full withdrawal. For example, a student who withdraws in the second week of the semester has earned less of his/her financial aid than a student who withdraws in the fifth week. Once the 60% point in the semester is reached, a student is considered to have earned all of the financial aid originally awarded and will not be required to return any funds.
Financial aid that is processed for a student who never begins attendance in any class will be canceled and all of the funds will be returned to the Department of Education.
Federal regulations require a recalculation of financial aid eligibility if a student:
Earned versus Unearned Financial Aid Funding
If a student officially or unofficially withdraws, ceases attendance, or is administratively withdrawn from Snow College, federal regulations require us to calculate the amount of Federal Title IV funds that are earned during the term in which the student no longer attends.
The percent earned is equal to the number of calendar days completed up to the withdrawal (officially or unofficially) date divided by the total number of calendar days in the semester/payment period. Breaks of 5 days or longer are not included in the count of total days in the payment period which generally only occurs spring semester.
Number of Days Completed ÷ Total Days in Payment Period = Earned Percent
As a result of a withdrawal, students who received federal funds will be required to repay unearned aid. The repayment calculation is performed utilizing the federal government's repayment worksheet see link below for access to the federal worksheet:
Determination of Withdrawal Date
The return of Title IV funds process begins when the student officially and/or unofficially withdrawals from or stops attending courses. The withdrawal date used in the return calculation of a student’s federal financial aid is the date the student began the official withdrawal process and/or the date of the student’s notification that they wish to withdrawal. If a student stops attending classes without notifying Snow College, the withdrawal date will be the date that the instructor posts when they submit grades. This date coincides with the last date of attendance, the last date of an academic activity such as homework assignment, quiz, exam or graded paper.
Instructors are required to report each term whether or not a student begins/does not begin attendance in a course. If a student does not begin attendance in a course, that course must be taken out of consideration for Title IV funds. The Title IV funds will be recalculated excluding that course. Depending on the remaining hours of registration, students may have their aid partially reduced or fully reduced. Students may also be subject to Title IV return calculations resulting in a reduction or cancellation of Title IV aid.
Students who do not plan to attend and will not be participating in a course should drop the class prior to the start of the term (or, at the very least, within the 100% refund period) to avoid Title IV aid recalculation.
When a Student Fails All Classes
If a financial aid recipient who has not officially withdrawn fails to receive a passing grade in at least one class during the term, the Financial Aid Office will determine whether the student actually established eligibility for the aid originally awarded. Instructors will be contacted and asked to provide information on the student’s attendance. If the student did not begin attendance, or stopped attending during the payment period, the financial aid originally awarded will be canceled or adjusted.
Order of Return to Federal Aid Programs
In accordance with federal regulations, unearned aid will be returned to the federal programs within 45 days of the student’s withdrawal in the following order:
Post Withdrawal Disbursement
If the student did not receive all of the funds that were earned prior to withdrawing, a post-withdrawal disbursement may be due. If the post-withdrawal disbursement includes loan funds, the student must give permission before the funds can be disbursed. Snow College may automatically use all or a portion of the post-withdrawal disbursement of grant funds for tuition, fees, and room and board charges. Permission is required to use the post-withdrawal grant disbursement for all other school charges. Students will be notified of post-withdrawal disbursement eligibility within 30 days of the date of withdrawal determination. The school must return the Title IV funds within 45 days of the date the school determines the student withdrew.
Student notification of Repayment
The student is responsible for returning unearned federal financial aid funds, loans and grants, to the Department of Education. Snow College can return funds on the student’s behalf and subsequently bill the student for any balances owed back to Snow College as a results of the Return of Title IV calculation. Notification reflecting outstanding balances will be mailed and emailed to the student reminding them of their financial obligation. A hold will be placed on the student’s account preventing them from registering for classes in the future. A transcript hold will also be placed on the student’s account preventing them from obtaining a transcript. Any and all debt collection practices will be pursued to insure that these funds are returned in a timely manner.
How a Withdrawal Affects Future Financial Aid Eligibility
Refer to the Financial Aid Office Satisfactory Academic Progress Policy to determine how a withdrawal impacts aid eligibility.
Additional Loan Information to Consider When Withdrawing
If the student is not enrolled at least half-time for more than 6 months, their loans will go into repayment. More specifically the student’s six (6) month grace period begins the day their enrollment status drops below half-time. The student must complete Exit Loan Counseling at www.studentloans.gov and contact their servicer to make payment arrangements. Loans must be repaid by the loan borrower (student/parent) as outlined in the terms of the borrower’s promissory note. The student should contact the server if they have questions regarding their grace period or repayment status.