Financial Aid Services Center
Financial Aid Repayment Policy for Official School Withdrawals, Unofficial School Withdrawals and No-Shows
Students who receive certain federal, state, and institutional grants, scholarships, or tuition waiver are subject to repaying disbursed aid upon withdrawing from the institution, failing to attend any class (no-show), expulsion, or otherwise complete zero credits in any given term. Details for repayment are given below.
Federal Student Aid Return of Title IV Funds Policy
According to Section 484B of the Higher Education Act of 1965, as amended in 1998, students who withdraw or are withdrawn from all classes in a term may be required to return all or a part of the Title IV aid received for that term. These policies apply only to students who completely terminate their enrollment or stop attending classes before completing more than 60 percent of the enrollment period. The policy does not apply to students who withdraw from individual courses, unless all courses are eventually dropped. However, if a student withdraws from individual courses and remains enrolled only in courses that were previously taken and passed, he/she may be considered to have fully withdrawn for Title IV aid only, under the federal rules for repeat coursework. This applies to courses that a student has passed and has then repeated at least once before.
Definition of Title IV Aid
Title IV aid refers to the federal financial aid programs authorized under the Higher Education Act (HEA) of 1965, as amended in 1998, and includes: Federal Pell Grants, Federal Supplemental Educational Opportunity Grant, TEACH Grant, Direct Loans, Direct PLUS Loans, Federal Perkins Loans, and Federal Work Study.
The Registrar’s Office serves as the official office of notification for withdrawal and all withdrawing students are referred to that office. The Financial Aid Department then uses the information from that office to process the R2T4 within the required deadline dates. Once the calculation is complete, the student is notified.
Last Date of Attendance
A student’s withdrawal date is used to calculate the amount of financial aid to be returned. The withdrawal date is defined as the earlier of: 1) the date the student began the withdrawal process or officially notified the institution of intent to withdraw; or 2) the student’s last date of documented attendance at an academically related activity. The institution has the option of using the latter date if the former date does not reflect the student’s actual situation.
If a student leaves without notifying the institution (unofficial withdrawal), the withdrawal date is the last date of documented attendance at an academically related activity. This date is determined by the instructor(s) of the course(s) for which the student was registered.
Key points about counting days of attendance:
- The day of withdrawal is counted as a day of attendance.
- Calendar days are used in the calculation.
- Scheduled breaks of at least five days are excluded (only applicable to fall quarter).
Return of Title IV Calculation Policy
Title IV aid is considered to be earned on a daily prorated basis through the 60 percent point of each term. All Title IV aid is considered 100 percent earned after that point.
A return of funds may be required when the aid disbursed is in excess of the aid earned during the term. The amount of Title IV aid earned is determined by multiplying the total Title IV aid (other than Federal Work Study) for which the student qualified by the percentage of time during the term that the student was enrolled. If less aid was disbursed than was earned, the student may receive a late disbursement for the difference.
The responsibility for returning unearned aid is shared between the University and the student. Any student share allocated to a grant program is reduced by 50 percent. Western will distribute the unearned aid back to the Title IV programs as specified in the Allocation of Refunds section below. The student will be billed for the amount the student owes plus the amount the University returned to the Title IV programs.
- Did the student cease to attend a course for which she was scheduled to attend?
- At the time the student stopped attending, was she attending other courses?
- Did the student confirm attendance in a later starting course?
If answer “yes” to 1 and “no” to 2 and 3 the student is a withdrawal and a Return of Title IV calculation must be completed. A return calculation is not required if the student withdraws from one module, but confirms she will be attending a later module within the same program period. If the student fails to attend the later module, the withdrawal date is based on the withdrawal date from the last module the student attended
Only Title IV aid can be considered for a post-withdrawal disbursement. State Need Grant, College Bound Scholarship, Western Grant, Need Based Tuition Waiver and all other non-title IV aid is not subject to this process.
Any post-withdrawal disbursement must meet the current required conditions for late disbursements prior to the date the student became ineligible for a school to make a late disbursement. For example, the school must have received the student’s Student Aid Report (SAR) or Institutional Student Information Record (ISIR) with an official expected family contribution (EFC). Post-withdrawal disbursements are required and are determined by following the requirements for calculating earned Title IV aid, which have no relationship to incurred educational costs. A post-withdrawal disbursement must be made within 90 days of the date that the institution determines that the student withdrew.
Written notification is sent to the student, or parent in the case of a PLUS loan, no later than 30 calendar days after the date that the school determines the student withdrew. The notice identifies the type and amount of the Title IV funds that make up the post-withdrawal disbursement and explain that the student or parent may decline all or a portion of those funds. This information must be provided to permit a student or parent to determine which funds, if any, he or she wishes to accept and/or decline.
In the notification, the school must advise the student or parent that they have 14 calendar days from the date the school sent the notification to accept a post-withdrawal disbursement. The notification must make it clear that if the student or parent does not respond to the notification within the timeframe, the school is not required to make the post-withdrawal disbursement. If a response is not received from the student or parent within the permitted timeframe or the student declines the funds, the school returns any earned funds being held to the Title IV programs.
If a student (or parent) submits a timely response accepting all or a portion of a post-withdrawal disbursement, the school must disburse the funds within 90 days of the date of the institution’s determination that the student withdrew.
If authorization from a student (or parent for a PLUS loan) is received after the 14 day time-frame the school must notify the student (or parent) that the post-withdrawal disbursement will not be made and why. This notification must be made in writing or electronically.
Rights and Responsibilities
Institutional Rights and Responsibilities:
- Provide each student with the information in this policy.
- Apply the policy to the appropriate students and complete the Return of Title IV Funds calculation in a timely manner according to published deadlines.
- Return any Title IV funds due to the Title IV programs in a timely manner according to published deadlines.
- Follow the policies and procedures established above.
- Return to the Title IV programs any funds that were disbursed directly to the student and which the student was determined to be ineligible for via the Return of Title IV funds calculation.
Student Rights and Responsibilities:
State and WWU Institutional Grant Repayment Policy
Definition of State and WWU Institutional Grants
For the purposes of this policy, the term Grant refers to the State Need Grant, the College Bound Scholarship, the Passport to College Scholarship, Western Grant, Viking Assistance Grant, and WWU need-based Tuition Fee Waiver awarded by the Financial Aid Department.
For the purposes of this policy, Award is the amount of Grant for which the student was eligible during the enrollment period, after the school made any required adjustments for need and enrollment level. Grants, whether disbursed to the student account or directly to the student, shall be included in the repayment calculation.
Repayment when Last Date of Attendance is known
If a student’s last date of attendance can be verified and is prior to or at 50 percent of the term, the Grant repayment will be based on the percent of the term not completed.
If the last date of attendance occurs after 50 percent of the term, the Grant award is considered 100 percent earned and no Grant repayment is due.
Repayment formula when last date of attendance is known:
- The percent of Grant earned is calculated by dividing days in attendance by calendar days in term. Scheduled breaks of five or more days should be excluded from the calculation.
- Subtract the percent of Grant earned from 100 percent; this equals the percent of unearned Grant.
- Multiply the percent of unearned Grant by the grant amount.
- Multiply the amount from step 3 by 50 percent and round to nearest dollar to determine the Grant repayment due.
Repayment when Last Date of Attendance is unknown
If a student attends a portion of a term and withdraws with no verified last date of attendance, the Grant repayment will be 50 percent of the Grant amount with no additional adjustments.
Repayment for No-Shows
If a Grant recipient never attends courses in the term for which they received a Grant award, the Grant repayment is 100 percent of the award. If a school is unable to distinguish between a no-show and an unofficial withdrawal, the no-show policy shall apply.
Students who must repay Grant will have their financial aid award adjusted and a bill for repayment will be placed on the WWU student account.