Repayment Policy

Financial Aid Withdrawal Policy

This is a federal law about paying back money if you leave school. If you get a GRANT and then WITHDRAW from all your classes, you will OWE money back to the federal program. Complete Withdrawal prior to the withdrawal deadline for the semester will result in a refund calculation.

Here’s how it works:

According to the day you withdraw, the financial aid office will calculate the part of the grant that you have “earned”. NOTE: If you withdraw after you have earned 60% of your grant, you do not owe any repayment.

EXAMPLE:

You receive a $2000 grant. If there are 100 days in the term and you drop out on the 26th day, then you earned 26% of your grant. The financial aid office will multiply your grant money and figure out what you earned, and did not earn.

$2000 grant X 26% = $520 earned; $2000 x 74% = $1480 unearned.

The college will owe some of the money back depending on the number of units you took:

You took 12 units at $20 each = $240 x 74% (unearned) = $178 the college has to pay

You will have to pay back the unearned portion of the grant minus 50% of the original grant (50% x $2000 =1000) minus the college share.

$1480-$1000-178= $302 you must pay back to the federal grant program.

You will also be required to repay the Institutional Portion of the unearned aid the college returned to the federal program.

( Don’t worry if you don’t understand, the financial aid office will calculate the amount for you.)

If you receive LOAN money and withdraw, you will pay back the money according to the normal rules of the loan program.

If you receive WORK-STUDY money and withdraw, you do not owe anything back. You always get to keep salary you have earned.

If you are thinking of withdrawing or just leaving…..

Please, think again.

 

Immediately see a counselor or advisor and discuss your academic or personal reasons for leaving. Perhaps you can stay but take fewer courses. Maybe there are services (like tutoring or personal support) that will help you stay. Talk to your teachers; see what advice and help they can offer.

Don’t leave unless you must.

But if you must, take care of business before you go.

NOTE: If there are earned funds that have not been disbursed to you, the Financial Aid Office will calculate a post- withdrawal refund and pay you for your earned time in class prior to withdrawing from school. Begin the withdrawal process at admissions & Records. This office will tell you all about the process and the rules. Go to the financial aid office immediately. Learn how much you will owe and how you will have to repay it. Please work with the Financial Aid Office. You can arrange for regular payments with the federal government without losing your student aid eligibility, so it’s important to take care of the details before you go. If you leave without taking care of this business and you owe money, the Financial Aid Office will have to put a NATIONAL HOLD on your student aid eligibility.