Impact On Financial Aid When Withdrawing From UW-Stevens Point
Financial Aid is considered earned based on the amount of time students attended during the semester that they received aid. If students complete less than 60% of the term prior to withdrawing, they will be required to repay a portion of the financial aid they received.
When a financial aid recipient withdraws during a term, the financial aid office must calculate the amount of Title IV aid the student did not earn. UW-Stevens Point, the student, or both may be required to return some or all of the federal funds awarded to the student for that term. Once UW-Stevens Point is notified of a withdrawal, unearned funds must be returned within 45 days.
Federal funds, for purposes of this regulation include: Pell Grant, Supplemental Educational Opportunity Grant (FSEOG), Federal Subsidized and Unsubsidized Loans, Perkins Loans, GradPLUS Loans, and Parent PLUS Loans. The formula used in this federal Return of Title IV Funds calculation divides the aid received between earned and unearned aid.
Return of Funds
Aid policy presumes that students should not be given aid for living expenses tied to the weeks that they did not attend, nor should a student have aid for more than a proportional amount of tuition expenses. More specifically, the Federal Return of Title IV Funds policy mandates that students who withdraw from all classes may keep only the financial aid they "earned" up to the time of withdrawal. State and institutional programs may require similar treatment in certain circumstances. Financial aid funds that were disbursed in excess of the amount earned must be repaid.
In the event that a student withdraws from all classes, UW-Stevens Point will determine the amount of financial aid a student has earned and how much must be returned. Any student withdrawing prior to the 60% point in the term should expect to have to repay financial aid in a percentage roughly equivalent to the percentage of time not in attendance. If the amount of aid already disbursed to a student for the semester exceeds the reduced eligibility, it will be necessary that appropriate payment be made to repay unearned aid. This could be from tuition refunded by UW-Stevens Point or from funds that were given directly for living expenses via a refund for excess aid. See the Accounts Receivable
website for more information on cancellations, drops, and refunds.
The Unsubsidized Loan, Subsidized Loan, Perkins Loan, Direct PLUS Loan, Pell Grant, and FSEOG are federal types of aid. If the amount UW-Stevens Point must return is less than the total aid to be returned, the remainder is the student's responsibility. Usually aid recipients do not receive any of the refund directly as it goes to repay aid (unless the refund exceeds the aid received).
As stated previously, both the school and the student may be required to repay financial aid that was received but not earned, according to the formula. The amount of aid earned is calculated on a pro-rated basis through the 60% point of the semester. Please be aware that the exact financial impact of your withdrawal may not be known until 1-3 weeks after you withdraw because it is necessary to determine how much refund (if any) is available to help repay your aid. UW-Stevens Point must wait until all of your charges have been applied to your account before making the final calculations. It is possible that student accounts were "paid in full" before the withdrawal but will end up owing money to the school after the withdrawal. This can happen when the federal formula requires a larger repayment to the sources than the amount provided by the tuition refund. When this happens, the student will be responsible for the difference, and will be billed by UW-Stevens Point.
Worksheets used to calculate the amount of "return of Title IV funds" are available upon request.
If a student leaves UW-Stevens Point without providing notification, UW-Stevens Point has 30 days after the end of the semester to recognize this "unofficial withdrawal" and use the federal formula to decide if funds need to be returned. We are to use the 50% point of the semester as the withdrawal date in these cases. If it is determined that no classes were attended, all of the financial aid received will need to be repaid.
It is also important to keep in mind that any withdrawals may impact your Satisfactory Academic Progress (SAP) at the university. For more information, see the SAP Policy for Financial Aid