The federal government mandates that students who withdraw from all classes may only keep the financial aid they have “earned” up to the time of withdrawal. Title IV funds that were disbursed in excess of the earned amount must be returned by the University and/or the student to the federal government. This situation could result in the student owing aid funds to the University, government or both.
To determine the amount of aid the student has earned up to the time of withdrawal, Scholarships & Financial Aid will divide the number of calendar days the student attended classes by the total number of calendar days in the semester (less any scheduled breaks of 5 days or more). The resulting percentage is then multiplied by the total federal funds that were disbursed (either to the student’s university account or to the student directly by check or direct deposit) for the semester. This calculation determines the amount of aid earned by the student which he or she may keep (e.g., if the student attended 25% of the term, the student will have earned 25% of the aid disbursed). The unearned amount – total aid disbursed less the earned amount – must be returned to the federal government by the University or the student. Scholarships & Financial Aid will notify and provide instructions to students who are required to return funds to the government.
Allocating Returned Title IV (Federal) Aid
Funds that are returned to the federal government are used to reduce the outstanding balances in individual federal programs.
Financial aid returned (by the University and/or you or your parents) must be allocated in the following order.
- Unsubsidized Federal Stafford Loans
- Subsidized Federal Stafford Loans
- Federal Perkins Loans
- Federal Graduate Plus Loans
- Federal Parent (PLUS) Loans
- Federal Pell Grant
- Federal SEOG
If your circumstances require that you withdraw from all classes, you are strongly encouraged to contact Student Financial Planning and your academic advisor before doing so. At that time, the consequences of withdrawing from all classes can be explained and clearly illustrated. The Student Financial Planning Office can provide refund examples and further explain this policy to you and your parents.
You should also be aware that as a recipient of financial assistance, you must comply with the Satisfactory Academic Progress (SAP) Policy. By withdrawing, you may not be eligible for financial assistance from High Point University in the future, because you did not complete a specified number of credit hours for which aid was disbursed. You can view more information about the SAP Policy in the SAP section under the Maintaining Eligibility tab.