Title IV- Return of Federal Financial Aid Fund Due to Withdrawal
Financial Aid recipients are obligated to remain enrolled in and pass a certain number of units. Upon a Financial Aid recipient's withdrawal from school, SF State 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.
The calculated returned Aid funds 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
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 SF State or with the U.S. Department of Education.
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 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.
For example (amounts and dates are only for sample purpose and do not reflect SF States semester or deadline dates):
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 $1,500 Pell, $250 SEOG, $1,500 in Subsidized Federal Direct Loan, and $300 in Perkins Loan. Registration and fees of $1,002 were deducted from his Financial Aid.
Total Financial Aid Received $3,550
Total Fees Paid Using Financial Aid Funds $1,002
Percent of Semester Completed:
Semester Begin Date- August 30
Withdrawal Date- September 22
Semester End Date- December 15
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:
$1,002 Registration Fees x 78% Unearned Aid = $782
SF State must return $782 to Federal Financial Aid Funds.
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 Online Class Schedule or University Bulletin for the TITLE V - CA State and University's REFUND and WITHDRAWAL deadlines).
SF State 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:
$2,769 Unearned Aid Amount - $782 SF State Returns = $1,987 Amount Student Must Return.
Student returns $718 to Federal Subsidized Direct Student Loan*
$300 to Perkins Loan*
50% of $969 to Federal Pell Grant = $485**
*Student may repay the Federal Subsidized 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 SF State or the U.S. Department of Education.
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.