Federal Title IV regulations (34CFR 668.22) require repayment of a portion of funds received by students unless certain conditions are met. A student who withdraws from or stops attending all courses before completing at least 60% of an enrollment period (i.e., a semester/term) must repay the unearned portion of the funds received. This rule applies to all federal grant and loan funds received as a disbursement by a student.
The funds that are required to be returned on behalf of the student will be returned within 45 days of the withdrawal date. The funds will be returned in this order:
- Unsubsidized Federal Stafford Loan
- Subsidized Federal Stafford Loan
- Federal PLUS Loan
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant
Once a student has completed more than 60% of the term, the student will not incur repayment of financial aid funds; however, future financial aid could be affected due to not meeting Satisfactory Academic Progress.
There are also financial consequences for Bright Futures Scholarship recipients who receive a grade of “W” or “WF”.