Return Of Federal
Financial Aid Fund Due to Withdrawal
Policy
Financial
aid recipients are obligated to remain enrolled and pass a certain number
of units. Upon a financial aid recipient's withdrawal from school,
SFSU is required by the Federal government to calculate, collect and
return a portion of Federal financial aid grant or loan funds received by
the student.
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Calculation
The
portion of financial aid to be returned is determined by the percentage of
financial aid not earned by the student. The percentage of unearned
aid is calculated using the following formula:
Total
Number of Calendar Days in the Semester Not Completed by the Student
Divided by the Total Number of Calendar Days in the Semester
During
the first 60% of the enrollment period, a student "earns" Title
IV funds in direct proportion to the length of time that he or she remains
enrolled. A student who remains enrolled beyond the 60% point earns
all aid for the period.
A
student who withdraws from the University before the 60% period
(approximately before the 10th week of classes) may be required to return
all or a portion of the federal financial aid funds. The amount to
be returned will be based on the formula stated above by calculating the
financial aid funds that were used to pay the student's registration fees
and campus housing obligations as well as the portion directly disbursed
to the student. Note: For a student who withdraws without notifying
the University, the withdrawal date is the midpoint of the semester.
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For
example:
Joe Smith withdrew on September 22nd. The semester began on August 30th, ends on December 15th, and is 108 calendar days long. For that semester, Joe received $1500 Pell, $250 SEOG, $1500 in Subsidized Direct Loan and $300 in Perkins loan. Registration and fees of $1002were deducted from his financial aid.
Total Financial Aid Received $3550
Total Fees Paid Using Financial Aid Funds $1002
Percent of Semester Completed:
08/30 Semester Begin Date 09/22 Withdrawal Date
12/15 Semester End Date
24 Days Attended / 108 Days In Semester = 22% Of Semester Completed
Percent of Unearned Aid:
100% - 22% Of Semester Completed = 78% Unearned Aid
$3550 Total Title IV Aid Disbursed X 78% Unearned Aid = $2769 Unearned Aid
Amount of Aid SFSU Must Return to Title IV:
$1002 Registration Fees x 78% Unearned Aid = $782 SFSU Must Return to
Federal Financial Aid Funds.
Note: A student may be responsible for all or a portion of the institutional fees - registration and housing- returned to the Federal financial aid funds based on the University's refund and withdrawal deadlines. (Refer to the Class Schedule or Class Bulletin for the TITLE V - CA State and University's REFUND and WITHDRAWAL deadlines.)
SFSU returns $782 to Subsidized Federal Direct Student Loan. The student’s loan obligation for the semester is reduced by this amount.
Amount of Financial Aid that the Student Must Return:
$2769 Unearned Aid Amount - $782 SFSU Returns = $1987 Amount Student Must Return.
Student returns $718 to Subsidized Federal Direct Student Loan*
$300 to Perkins Loan*
50% of $969 to Federal Pell Grant = $485**
*Student may repay the Federal Direct Student Loan and the Perkins Loan according to the original terms of both loans.
**Student only repays 50% of unearned aid attributable to a grant and has 45 days to enter into satisfactory repayment arrangement with SFSU or the U.S. Department of Education.
Unearned funds returned are credited to outstanding Federal loan balances and grant programs received by the student in the following priority order:
Unsubsidized Federal Direct Loans
Subsidized Federal Direct Loans
Federal Perkins Loans
FFEL PLUS Loans
Federal Pell Grants
Federal SEOG
Other Title IV assistance for which a return of funds is required
The student’s portion of the calculated amount attributable to a Title IV loan program may be repaid by the student according to the loan’s terms.
The student’s portion of unearned aid attributable to a grant is reduced to 50%. The student has 45 days to enter into repayment arrangement with SFSU or with the U.S. Department of Education.
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Consequences
of Outstanding Repayment Obligation:
SFSU does not have the authority to waive or write off the repayment requirement regardless of the reason for the withdrawal, including extenuating circumstances such as illness, accident or grievous personal loss.
A student who fails to return the unearned Federal Financial Aid funds will be referred to the U.S. Department of Education for collection and the
University may withhold permission to register; to use facilities; or render services. Until the repayment issue is resolved, the student’s record will be “flagged” every time a student files a Free Application for Federal Student Aid (FAFSA). A student in repayment is ineligible for financial aid at any other institution in the nation.
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