Student Financial Services is required by Federal statute to recalculate Federal financial aid eligibility for students who withdraw, drop out, are dismissed, or take a leave of absence prior to completing 60% of a payment period or term. The Federal Title IV financial aid programs must be recalculated in these situations. If a student leaves the institution prior to completing 60% of a payment period or term, the Financial Aid Office recalculates eligibility for Title IV funds. Recalculation 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% 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, 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 30 days after the date of the determination of the date of the student’s withdrawal. Refunds are allocated in the following order:
- Unsubsidized Federal Stafford Loans
- Federal Perkins Loans
- Federal Graduate PLUS Loans
Tuition Refund Policy
When a student withdraws from a program, a refund of tuition may be granted based on the official withdrawal date.
RFUMS tuition refund policy:
- Withdrawal before the end of the 1st week of classes - 100% tuition refund
- Withdrawal before the end of the 2nd week of classes - 75% tuition refund
- Withdrawal before the end of the 3rd week of classes - 50% tuition refund
- Withdrawal before the end of the 4th week of classes - 25% tuition refund
- Withdrawal any time after the 4th week of classes - no tuition refund