When a student receiving Title IV financial aid withdraws from all courses, the aid must be adjusted according to 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 reduce financial aid and result in charges. The federal refund calculation must be performed if a student withdraws on or before the 60% point of the semester. These student refund calculations follow a specific percentage of adjustment based on the withdrawal date. They may require a return of financial aid to the financial aid accounts by the school 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 affect financial aid, so a student contemplating withdrawal and who has financial aid should consult the Financial Aid Staff. U.S. Department of Education Regulations requires that a student’s eligibility be recalculated based on the official withdrawal date according to their (pro-rated) formula. To simplify, 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 the financial assistance used to pay a student’s bill, which may leave a balance due to UMFK (or the United States) from the student. The student must 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.