- The law specifies the amount of financial assistance the student earns each academic year and how the school determines eligibility.
- If the student withdraws, the school uses a specific formula to calculate how much aid he or she has earned to that point.
- If the student received less assistance than the amount earned, he or she will be able to receive those additional funds.
- If the student received more assistance than he or she was entitled to, the excess funds must be returned to the lender or program.
When a student receiving Title IV student financial aid withdraws from all courses, the aid must be adjusted in accordance with rules established by the U.S. Department of Education. These calculations may result in the student owing a University balance.
When a student withdraws, University policies and federal requirements may result in charges and financial aid being reduced. If a student withdraws on or before the 60% point of the semester, the federal refund calculation must be performed. These student refund calculations follow a specific percentage of adjustment based on the date of withdrawal and may require a return of financial aid to the financial aid accounts by the school and/or the student. Refund calculations take into account all federal financial aid received. The calculation is generally based upon the percentage of the enrollment period which the student has completed.
The day the student officially withdraws is determined to be the withdrawal date. If the student ceases attendance without providing official notification of withdrawal to the institution, the mid-point of the payment period will be the withdrawal date for the purpose of returning Title IV funds.
Withdrawals from a semester may have an effect on financial aid, so a student contemplating withdrawal and who has financial aid should consult the Financial Aid Staff. U.S. Department of Education Regulations require that a student's eligibility be recalculated based on the official date of withdrawal according to their formula, which is basically a pro-rata formula. Thus, to oversimplify, a student who withdraws on the 30th day of a 75 day semester would only be eligible for approximately 40% of the original financial aid, regardless of the institution's tuition and fee refund policy. This may mean that UMFK will be required to return financial aid that has been used to pay a student's bill, which may leave a balance due to UMFK (and/or the United States) from the student. It is the student's responsibility to contact Financial Aid Staff for information on the impact withdrawal will have on their financial aid.
Funds returned as a result of a refund or overpayment are returned to the Title IV accounts in an order prescribed by law and regulations. Please refer below for information for that order.
- Unsubsidized Federal Stafford Loans
- Subsidized Federal Stafford Loans
- Federal Perkins Loans
- Federal PLUS Loans
- Federal Pell Grants
- Federal Supplemental Educational Opportunity Grants (FSEOG)
- Other Title IV Aid Programs
- Other federal, state, private or institutional aid
- The Student
If you have any questions regarding the Refund Calculation for Withdrawals, please contact the Financial Aid Office at (207) 834-7605 or email email@example.com for more information.