Financial Aid Refund & Withdrawal Policy
Financial aid recipients who withdraw from Hood College will have their financial aid package reviewed and may have their aid eligibility reduced. This review will include separate calculations for institutional and federal aid programs. In all cases, withdrawal refunds are determined by the effective date the student begins the withdrawal process.
For purposes of calculating the Return of Title IV funds, the date the student begins the institution’s withdrawal process as outlined in the Hood College catalogue is the withdrawal date for Title IV purposes. The financial aid office will calculate any necessary adjustments to the aid.
Institutional aid (Hood scholarships and grants) will be prorated the same percentages as the student’s tuition charges established by the accounting office.
|If a student withdraws:||Financial aid is reduced:|
|Prior to the start of the semester||100%|
|Within 14 calendar days from the start of the semester||80%|
|After the 14th day from the first day of the semester||0%|
The financial aid office is required by federal statue to determine how much financial aid was earned by students who withdraw, drop out, are dismissed, or take a leave of absence prior to completing 60 percent of a payment period or term.
For a student who withdraws after the 60 percent point-in-time, there are no unearned funds. However, a school must still complete a return calculation in order to determine whether the student is eligible for a post-withdrawal disbursement.
The calculation is based on the percentage of earned aid using the following Federal Return of Title IV funds formula: Percentage of payment period or term completed = the number of days completed up to the withdrawal date divided by the total days in the payment period or term. Any break of five days or more is not counted as part of the days in the term. This percentage is also the percentage of earned aid.
Funds are returned to the appropriate federal program based on the percentage of unearned aid using the following formula: Aid to be returned = 100 percent of the aid that could be disbursed minus the percentage of earned aid multiplied by the total amount of aid that could have been disbursed during the payment period or term.
If a student earned less aid than was disbursed, the institution would be required to return a portion of the funds and the student would be required to return a portion of the funds. Keep in mind that when Title IV funds are returned, the student borrower may owe a debit balance to the institution.
If a student earned more aid than was disbursed to him/her/them, the institution would owe the student a post-withdrawal disbursement which must be paid within 120 days of the student’s withdrawal.
The institution must return the amount of Title IV funds for which it is responsible no later than 45 days after the date of the determination of the date of the student’s withdrawal.
Refunds are allocated in the following order:
- Unsubsidized Federal Direct Loans.
- Subsidized Federal Direct Loans.
- Federal Direct Parent (PLUS) Loans.
- Federal Pell Grants for which a Return of funds is required.
- Federal Supplemental Opportunity Grants (FSEOG) for which a Return of funds is required.
- Other assistance under this Title for which a Return of funds is required.
Intent to Enroll: Confirmation of Attendance in a Future Session During the Payment Period
When it is determined that a student has withdrawn, students must confirm attendance in a future course within the same payment period, even if the student is already registered for future courses. You can confirm attendance by completing the drop/add form or request to withdraw from class after drop/add form in the Registrar’s Office. This form allows us to suspend the Return of Title IV Funds Calculation. As long as the student successfully completes the future course(s) within the current payment period, no other action will be necessary.
Withdrawals and Return of Title IV Funds
Official Withdrawal: A student who follows the college procedure as outlined in the Hood College Catalogue to officially withdraw from all of his/her/their classes for the term. Students who take an official Leave of Absence (LOA) will be considered an official withdrawal for financial aid purposes. Federal regulations require that the Office of Financial Aid calculate a Return of Title IV for LOA cases.
Unofficial Withdrawal: A student who stops attending all of his/her classes during the term, does not follow the college procedure to officially withdraw as outlined in the Hood College Catalogue and fails to successfully complete the term (i.e., receives all final grades of F, W, or combination of both).
In the following example the student’s institutional charges will be adjusted by the amounts that must be returned to the Title IV programs. Please note that charges used in these examples may not reflect true College charges.
The student lives off campus. The charges are as follows:
|Tuition and all fees||$2,067|
|Financial aid consists of|
|Federal Pell Grant||$573|
|Subsidized Federal Direct Loan||$2,668|
|College Charges Paid||$2,067|
|Amount of excess funds to student||$1,330|
The student withdraws on 9/21. This is day 22 out of 106 days in the term. 22/106 = 20.8% of Title IV funds earned by the student. Title IV funds total = $3,205.00 ($537 + $2668). $3205.00 x 20.8% = $667.00 Title IV funds earned.
Title IV funds to be returned: $3025.00 - $666.64 = $2538.36 to be returned to Federal Programs.
Unearned Title IV funds due from the College: Institutional charges = $2067.00; unearned Title IV = 79.2% (100 – 20.8%); $2067 x 79.2% = $1637.00. (This will become a balance due on the student account since Return of Title IV Funds calculation is required.)
Hood College must return $1637.00 of the Title IV funds. The Financial Aid Office will reduce the Subsidized Federal Direct Loan by this amount since this type of aid is ahead of Federal Pell Grant on the federal order list. (The amount of overall student loan debt is reduced.).
Unearned Title IV funds to be returned by the student: Unearned Title IV aid to be returned – amount returned by Hood College = amount to be returned by student: $2538.36 - $1637.06 = $901.00 to be returned by Student.
Note: Loan amounts to be returned by student (or parent in the case of a PLUS loan) are returned in accordance with the terms of the promissory note.
1. After beginning attendance in the payment period, did the student cease to attend or fail to begin attendance in a course he or she was scheduled to attend? If the answer is no, this is not a withdrawal. If the answer is yes, go to question 2.
2. When the student ceased to attend or failed to begin attendance in a course he or she was scheduled to attend, was the student still attending any other courses? If the answer is yes, this is not a withdrawal; however other regulatory provisions concerning recalculation may apply. If the answer is no, go to question 3.
3. Did the student confirm attendance in a course in a term beginning later in the payment period? If the answer is yes, this is not a withdrawal, unless the student does not return. If the answer is no, this is a withdrawal.
Take, for example, a student who is a recipient of Title IV program funds who is scheduled to complete two courses in each of the sessions within the payment period (summer session 1 and summer session 2).
Scenario 1: The student begins attendance in both courses in the summer session 1, but ceases to attend both courses after just a few days and does not confirm that he/she will return to any courses in summer session 2. The student is a withdrawal because he or she ceased to attend courses he/she was scheduled to attend (Yes to question 1); was not still attending any other courses (No to question 2); and did not confirm attendance in a course in a sessions beginning later in the payment period (No to question 3).
Scenario 2: The student begins attendance in both courses in summer session 1, but withdraws from just one course after a few days. The student is not a withdrawal. Although the student ceased to attend a course he or she was scheduled to attend (Yes to question1), the student was still attending another course (Yes to question 2).
Scenario 3: If the student completes both courses in summer session 1, but officially drops both courses in summer session 2 while still attending the courses in summer session 1, the student is not a withdrawal. Because the student officially dropped both courses in summer session 2 before they began, the student did not cease to attend or fail to begin attendance in a course he or she was scheduled to attend (No to question 1). However, because the student did not begin attendance in all courses, other regulatory provisions concerning recalculation may apply.
Scenario 4: If the student completes both courses in summer session 1, starts attending both courses in summer session 2 but withdraws from both of these courses, the student is a withdrawal. Although the student successfully completed the summer session 1; the student ceased to attend courses he or she was scheduled to attend (Yes to question 1); was not still attending any other courses (No to question 2); and did not confirm attendance in a course in a term beginning in the later summer session (No to question 3).
A student who receives financial aid assistance to pay for his/her classes has the responsibility to attend all classes until the end of the term. Should a student be unable to complete all classes in the term for any reason, federal regulations require that a Return of Title IV Funds calculation be performed on students who failed to complete at least 60% of the semester. Funds that the student was not eligible to retain are referred to as “unearned funds”. Unearned funds must be returned by the school and/or student to the appropriate aid program(s).
Note: Institutional aid (scholarships/grants) may be adjusted within 14 calendar days from the first day of the semester.
Official Withdrawal: The calculation is performed within 30 days of the student’s official withdrawal date as determined by the Office of Records & Registration.
Unofficial Withdrawal: The calculation is performed within 30 days of the end of the term after the student’s final grades are posted. The date of an unofficial withdrawal is based on the student’s last date of attendance as determined by the Office of Financial Aid.
The student is notified in writing of the result of the calculation performed. The written letter lists the amount of unearned financial aid funds that must be repaid to Hood College, the U.S. Department of Education, or both. The letter also outlines the steps necessary the student must take to resolve his/her account with Hood College, the U.S. Department of Education, or both
I owe money to the college?
Any outstanding balance on the student’s account must be repaid to Hood College. Failure to do so will result in a hold being placed on the student’s record. The student will be unable to register for subsequent terms, will not be able to receive official transcripts, and may have the outstanding balance due sent to a collection agency.
I owe money to the U.S. Department of Education?
Any outstanding balance owed by the student to the U.S. Department of Education for unearned aid funds must be repaid to Hood College immediately. Hood College then refunds the unearned aid funds to the appropriate aid programs on behalf of the student. Students who owe monies back to the U.S. Department of Education and fail to repay these ineligible funds to Hood within forty-five (45) days of notification are referred to the U.S. Department of Education in an Overpayment status. Students who are in an Overpayment status are not eligible to receive federal financial aid assistance at Hood College or any other participating institution.
Students receiving financial aid have the responsibility to follow the college’s withdrawal procedures as outlined in the Hood College Catalogue. Students who wish to rescind their official withdrawal submitted to the College must do so within one week of the original withdrawal and notification must be provided in writhing to the Office of Financial Aid. The 1998 Reauthorization of the Higher Education Act requires the College to calculate a Return of Title IV Funds on all federal financial aid students who withdraw officially or unofficially from all classes on or before the 60% point of the semester. A prorate schedule is used to determine the percentage of the semester the student attended based on the withdrawal date/last date of attendance.
The percentage of the semester the student attended is calculated as follows: Number of days in attendance / Number of days in semester. The number of days counted includes all calendar days in the semester including weekends and holidays, but excludes college breaks of five or more days.
The percentage of the semester the student attended is used to calculate the amount of the student’s earned versus unearned federal aid funds. The unearned portion of federal aid funds must be returned to the appropriate aid program in accordance with the Order of Return as mandated by federal regulations. The Order of Return is: Federal Direct Unsubsidized Loan, Federal Direct Subsidized Loan, Federal PLUS Loan, Federal Pell Grant, Federal SEOG Grant, Other Title IV Aid.
The College is responsible for returning the lesser of Unearned Title IV Aid or Unearned Institutional Charges. Unearned Institutional Charges are based on the determined percentage of the semester the student did not attend. The College is responsible for its return of funds first, followed by the student’s return of funds.
The student is responsible for returning: Amount of Unearned Title IV Aid – Amount of Aid School Returns = Amount Student Returns. The College must return its portion of Unearned Title IV Aid (loan and grant) to the appropriate federal program within 30 days from the student’s withdrawal date as determined by the Office of Financial Aid. If the amount the student returns includes a federal loan, the student is responsible for repayment of the loan in accordance with the terms of the loan program. If the amount the student returns includes grant aid, the student must repay 50% of the grant money received, rather than 100%.
The student must return unearned grant aid to the College within 45 days of notification. Failure by the student to return or make arrangements to return unearned grant aid to the College within 45 days will result in the student being reported to the U.S. Department of Education. The student will be reported in an Overpayment Status, and will not be eligible for additional aid at any post-secondary institution participating in Title IV Aid Programs. Students who are reported to the U.S. Department of Education in an Overpayment Status should contact the U.S. Department of Education to make payment arrangements to repay the necessary grant funds.
Examples of Federal Title IV Return of Funds calculation are available in the Office of Financial Aid. Students who stop attending Hood College may not receive further financial aid disbursements, may lose some or all of the aid that has already been disbursed to their account, may be responsible for repayment of unpaid charges, and may be considered in Overpayment Status with the U.S. Department of Education.
Students who stop attending classes without officially withdrawing from the college will be subject to a Return of Title IV Funds calculation at the end of the semester, based on their last date of attendance as determined by the Office of Financial Aid. Further, a student’s grace period for loan repayments for Federal Direct Loans will begin on the day of the withdrawal from the College. The student should contact their servicer with any questions regarding grace period or repayment status.