Financial Aid Withdrawal Policy
Treatment of Title IV Aid When a Student Withdraws
The Department of Education requires NDSU to maintain and publish a written policy regarding federal financial aid recipients who withdraw or otherwise fail to complete the term for which their financial aid was disbursed.
Federal financial aid funds (Title IV Funds) are awarded to a student under the assumption that the student will attend school for the entire period for which the assistance is awarded. When a student withdraws, they may no longer be eligible for the full amount of Title IV funds that they were originally scheduled to receive.
The law specifies how your school must determine the amount of Title IV program assistance that you earn if you withdraw from school. The Title IV programs that are covered by this law are: Federal Pell Grants, Iraq and Afghanistan Service Grants, TEACH Grants, Stafford Loans, PLUS Loans, Federal Supplemental Educational Opportunity Grants (FSEOGs) and Federal Perkins Loans.
When you withdraw during your payment period or period of enrollment, the amount of Title IV program assistance that you have earned up to that point is determined by a specific formula. If you received (or your school or parent received on your behalf) less assistance than the amount that you earned, you may be able to receive those additional funds. If you received more assistance than you earned, the excess funds must be returned by the school and/or you.
The amount of assistance that you have earned is determined on a pro rata basis. For example, if you completed 30% of your payment period or period of enrollment, you earn 30% of the assistance you were originally scheduled to receive. Once you have completed more than 60% of the payment period or period of enrollment, you earn all the assistance that you were scheduled to receive for that period.
If you did not receive all of the funds that you earned, you may be due a Post-withdrawal disbursement. If your Post-withdrawal disbursement includes loan funds, your school must get your permission before it can disburse them. You may choose to decline some or all of the loan funds so that you don’t incur additional debt. Your school may automatically use all or a portion of your Post-withdrawal disbursement of grant funds for tuition, fees, and room and board charges (as contracted with the school). The school needs your permission to use the Post-withdrawal grant disbursement for all other school charges. If you do not give your permission (some schools ask for this when you enroll), you will be offered the funds. However, it may be in your best interest to allow the school to keep the funds to reduce your debt at the school.
However, there are some Title IV funds that you were scheduled to receive that cannot be disbursed to you once you withdraw because of other eligibility requirements.
If you receive (or your school or parent receives on your behalf) excess Title IV program funds that must be returned, your school must return a portion of the excess equal to the lesser of:
- Your institutional charges multiplied by the unearned percentage of your funds, or
- The entire amount of excess funds.
The school must return this amount even if it didn’t keep this amount of your Title IV program funds.
If your school is not required to return all of the excess funds, you must return the remaining amount. Any loan funds that you must return, you (or your parent for a PLUS Loan) repay in accordance with the terms of the promissory note. That is, you make scheduled payments to the holder of the loan over a period of time.
Any amount of unearned grant funds that you must return is called an overpayment. The maximum amount of a grant overpayment that you must repay is half of the grant funds you received or were scheduled to receive. You do not have to repay a grant overpayment if the original amount of the overpayment is $50 or less. You must make arrangements with your school or the Department of Education to return the unearned grant funds.
The requirements for Title IV program funds when you withdraw are separate from any refund policy that your school may have. Therefore, you may still owe funds to the school to cover unpaid institutional charges. Your school may also charge you for any Title IV program funds that the school was required to return. If you don’t already know what your school’s refund policy is, you can ask your school for a copy. Your school can also provide you with the requirements and procedures for officially withdrawing from school.
If you have questions about your Title IV program funds, you can call the Federal Student Aid Information Center at 1-800-4-FEDAID (1-800-433-3243). TTY users may call 1-800-730-8913. Information is also available on Student Aid on the Web at www.studentaid.ed.gov.
Withdrawal Procedure and Withdrawal Date
Students who wish to withdraw from all courses after the semester start date must officially withdraw to zero credits. To withdraw, complete the Withdrawing to Zero Credits Form and submit it to NDSU One Stop. Campus Connection does not allow you to drop your last or only class. If you live in a residence hall, check out with your hall director and submit the appropriate forms to the Office of Residence Life prior to submitting the Withdrawal form. Students in university apartments should contact the Office of Residence Life directly.
The date of withdrawal for financial aid purposes, will be the date you begin the withdrawal process or the date, as determined by NDSU, you notified NDSU in writing or verbally, of your intent to withdraw to zero credits.
Distribution of Unearned Title IV Aid
In compliance with federal regulations, a school must return Title IV funds to the programs from which the student received aid during the payment period or period of enrollment as applicable, in the following order, up to the net amount disbursed from each source:
- Unsubsidized Direct loans (other than PLUS loans)
- Subsidized Direct loans
- Federal Perkins loans
- Federal PLUS loans
- Federal Pell Grants
- Federal Supplemental Educational Opportunity Grants (FSEOG)
- TEACH Grant
- Iraq and Afghanistan Service Grant
Federal Work-Study funds paid to recipients will not be included in the computation of earned Title IV aid, nor will these funds be refunded to the federal account from which they were paid.
Unearned Title IV grants and loan funds due from NDSU will be repaid to the federal accounts for the specified semester. Unearned portions of Title IV grant aid due from the student will also be repaid to the federal accounts by NDSU. All repayments made by NDSU pursuant to this policy will be charged to your student account.
In the absence of an official withdrawal and the student ceases attendance, the following procedures will apply.
- A list of students who received all FN’s, FNN's, UNN's, UN's or W’s for a term (period of enrollment) will be extracted from the Registrar’s Office records which contains the last known date of academically related activity for the student, i.e., an exam, daily assignment, attendance in class, etc.
- If the latest date any instructor can document is after the 60% point in the enrollment period, the student is considered to have earned 100% of their financial aid funds and no further action will be required. If the latest date is before the 60% point in the term, the latest documented date or the 50% point in the term (whichever is later) will be used as the last date of attendance for the student. If documentation indicates no attendance in any class, the student will be deemed ineligible for financial aid per federal regulations and required to repay all aid received for that semester.
- Based on the last date of attendance, a Return of Title IV funds calculation will be processed to determine the type(s) and amount(s) of financial aid to be returned.
- All financial aid funds to be returned will be the responsibility of the student. The institution will not refund any tuition, fee, and room or board charges.
- A letter including a link to NDSU’s policy on unofficial withdrawals will be e-mailed and postal mailed to the student notifying them of their obligation at the time the institution returns the financial aid funds.
- Customer Account Services will place a hold on the student’s record at NDSU. Institutional collection procedures will be followed in accordance with NDSU Policy 513.
- Students will also be placed on Financial Aid Disqualification following the term in which they receive all F’s, I’s or U's.