It is important for any student who receives financial aid and then chooses to withdraw or drop all courses during a given term to be aware of current refund policies as determined by the Higher Education Title IV refund regulations. Federal Refund and Repayment calculations must be performed for students who receive Federal or State financial aid in the forms of grants or loans and officially withdraws or drop courses prior to the 60% date of the term.
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 # of Calendar Days in the semester Not Completed by the Student
Divide 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 he or she remains enrolled. A student who remains enrolled beyond the 60% point earns all aid for the period.
2. REPERCUSSIONS OF WITHDRAWING & CONSEQUENCES OF OUTSTANDING REPAYMENT OBLIGATION
As a financial aid recipient, withdrawing from all of your classes before the 60% point in the semester may result in the following:
- Federal aid, including loans, will be reduced and returned back to the corresponding Federal aid programs
- The student may owe a portion of their Pell or SEOG back to the Department of Education
- SUGP, Cal Grant A and Cal Grant B will be reduced and returned back to these State aid programs
- The student will be billed by SFSU for the mandatory return of funds to the US Department of Education and State programs if the student previously received and cashed a refund check.
After you withdraw, you may receive the following notices:
- The Office of Student Financial Aid will send you an email informing you of the amount you need to repay to the Federal Pell Grant and/or Federal SEOG. You will be given a deadline to repay this obligation to SFSU. If you miss this deadline, the Federal grant obligation will be referred to the Department of Education and NSLDS. You will then need to contact the Department of Education to make the payment. Once the referral is made, you will be ineligible to receive further financial aid from any colleges until you pay the obligation in full or make a repayment arrangement with the Department of Education as your FAFSA will be flagged regarding this obligation. Your credit report may also be affected.
- The SFSU Bursarís office will also inform you if you need to repay any unearned student aid that SFSU was required to return on your behalf. The notification will be sent in the form of an e-bill. Failure to repay this campus obligation may result in the university withholding your ability to register and receive campus services. After a certain date, this unpaid obligation will be referred to the Franchise Tax Board. Referral to the Franchise Tax Board may result in the garnishing of your wages.
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.
3. CALCULATION PROCESS
The following is an example showing the impact on a student's financial aid award, the amount that SFSU is mandated to return back to the financial aid programs and the amount that the student is required to repay due to withdrawal before the 60% point in the semester.
A student enrolled full time and received the following financial aid in Spring 2015.
On 2/09 the student withdrew from all courses for the Spring 2015 semester.
Based on the student's date of withdrawal, the student only earned 13.5% of the financial aid received. Consequently, the University must reduce the student's financial aid by calculating the adjusted amounts and then return the remaining to the Federal financial aid programs and to the State University Grant.
Student's Adjusted Award - Earned 13.5% of Original Award
Note that the University has reduced the student's tuition/fees based on the student's date of withdrawal. Correspondingly the award amounts for the Unsubsidized Federal Direct Loan, Subsidized Federal Direct Loan and State University Grants have been reduced.
The student is no longer eligible for the original award amounts of these aid types, based on financial aid regulations.
SFSU must return all or a portion of these aid types to the corresponding financial aid programs:
The student is also obligated to return a portion of the grant funds received for the Spring 2015 semester. See note below: