Student Financial Services Financial Aid
Information For: Prospective Students Current Undergraduates Graduate Students Parents
SEARCH THIS SITE:
 
HOME
Withdrawal and Return of Funds
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 semester. The federal Title IV financial aid programs must be recalculated in these situations. Title IV funds are Pell, SEOG, and CSAP grants, Perkins Loan, Direct Subsidized, Direct Unsubsidized, and PLUS loans.

Leave of Absence

If a student who has received Title IV loans (Perkins, PLUS, and Ford Federal Direct Subsidized or Unsubsidized Loans) does not return from an approved leave of absence, some or all of the repayment deferral period may be exhausted, and loans may go into repayment. For purposes of the Title IV programs, the date of withdrawal is backdated to the first day of the approved leave of absence. This policy also includes students who do not return from an approved leave for study abroad.

Withdrawal

If a student leaves the University prior to completing 60% of a semester, the financial aid office recalculates eligibility for Title IV funds. Recalculation is based on the percent of earned aid using the following Federal Return of Title IV funds formula:

Percent of aid earned = the number of days completed up to the withdrawal date, divided by the total days in the semester. (Any break of five days or more is not counted as part of the days in the semester.)

Funds are returned to the appropriate federal program based on the percent of unearned aid using the following formula:

Aid to be returned = (100% minus the percent earned) multiplied by the amount of aid disbursed toward institutional charges.

The University if required to return a portion of the funds and the student is 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 University. It that is the case, the student should contact Student Financial Services to make arrangements to pay the outstanding balance.

Examples of Return of Funds Calculations

In each of the following examples, the student's institutional charges will be adjusted by the amounts that must be returned to the Title IV programs. Please note that charges used in these examples may not reflect true University charges.

Example 1: Student A is from Virginia and lives off grounds. Her charges are as follows:

Tuition and all fees $ 2067.00
Her financial aid package consists of:  
Pell Grant 537.50
CSAP 1000.00
Special Student Aid 600.00
Subsidized Loan 2668.00
Total Aid 4805.50
   
Financial Aid 4805.50
University Charges 2067.00
Amount refunded to student $ 2738.50

Student A withdraws on 9/21. This is day 22 out of 106 days in the term. 22/106 = 20.8% of Title IV funds earned by the student. Title IV funds = $4205.50 ($537.50 + $1000 + $2668). $4205.50 X 20.8% = $874.74 Title IV funds earned.

Title IV funds to be returned: $4205.50 - $874.74 = $3330.76 to be returned to Federal Programs.

Unearned Title IV funds due from the University: Institutional charges = $2067.00; unearned Title IV = 79.2% (100% - 20.8%); $2067 X 79.2% = $1637.06.

UVA must return $1637.06 of the Title IV funds. The Financial Aid Office will reduce the Direct Subsidized Loan by this amount.

Unearned Title IV funds to be returned by the student: Unearned Title IV aid to be returned - amount returned by UVA = amount to be returned by student: $3330.76 - $1637.06 = $1693.70 to be returned by Student A.

Note: Loans amounts to be returned by student (or parent in the case of a PLUS loan) are returned in accordance with the terms of the promissory note. In this situation the Subsidized loan was reduced to $1030.94. The student is required to return $1693.70. After considering the loan amount that will be returned in accordance with the terms of the promissory note, the student still owes $662.76, which will need to be repaid from grant funds ($1693.70 - $1030.94 = $662.76).

After considering the loan amount, the student must return $662.76. Any amounts to be returned to Title IV grants are reduced by 50%. Student A must return $662.76 X 50% = $331.38.

Example 2: Student B is from Virginia, lives on grounds, and has a meal plan. His charges are as follows:

Tuition and all fees $ 2067.00
Dorm 1165.00
Meal plan 485.00
Total charges 3717.00
His financial aid package consists of:  
Special Student Aid 400.00
Byrd Scholarship 750.00
Perkins Loan 1000.00
Subsidized Loan 1698.00
Total Aid 3848.00
   
Financial Aid 3848.00
University Charges 3717.00
Amount refunded to student $ 131.00

Student B withdraws on 10/8. This is day 40 out of 106 days in the semester. 40/106 - 37.7% of Title IV aid earned by the student. Title IV funds = $2698 ($1000 + $1698). $2698 X 37.7% = $1017.15 Title IV funds earned.

Title IV funds to be returned: $2698 - $1017.15 = $1680.85 to be returned to Federal Programs.

Unearned Title IV funds due from the University: Institutional charges = $3717.00. Unearned Title IV = 62.3% (100% = 37.7%). $3717 X 62.3% = $2315.69. Even though the unearned portion of Title IV funds is $3717 X 62.3% = $2315.69, the Financial Aid Office is only required to return the smaller amount of $1680.85. We will reduce the Subsidized Loan by $1680.85. No unearned Title IV funds to be returned to Student B.

Example 3: Student C is a non-Virginian and lives off grounds. Her only financial aid is a PLUS loan. Her charges are as follows:

Tuition and all fees $ 8303.50
Her financial aid package consists of:  
PLUS loan 9840.00
   
Financial Aid 9840.00
University Charges 8303.50
Amount refunded to student $ 1536.50

Student C withdraws on 9/5. This is day 7 out of 106 days in the term. 7/106 = 6.6% of the Title IV funds earned by the student. Title IV funds earned = $9840 X 6.6% = $649.44.

Title IV funds to be returned: $9840 - $649.44 = $9190.56 to be returned to the Federal Program.

Unearned Title IV funds due from the University: Institutional charges = $8303.50; Unearned Title IV funds = (100% - 6.6%) = 93.4%. $8303.50 X 93.4% = $7755.47. UVA must return $7755.47, therefore, the PLUS loan will be reduced by $7755.47.

Unearned Title IV funds to be returned by the student: Unearned Title IV funds to be returned - amount returned by UVA = amount to be returned by the student. $9190.56 - $7755.47 = $1435.09 to be returned by Student C.

The balance of the PLUS loan will be repaid in accordance with the terms of the promissory note. Nothing more will need to be done.

University Refund Policy (CAPS)

Students who do not receive Title IV financial aid undergo the University Refund process. The schedule for allocation of tuition and fees amounts charged and amounts credited is as follows:

School Week % Charged % Credited
1 20 80
2 20 80
3 30 70
4 40 60
5 50 50
6 60 40
7 100 0

Any refunds due to the student because of withdrawal will first be offset against any other amounts owed to the University.

Tuition and Fees: In the event a student withdraws from the University, tuition and fees will be charged on a percentage basis based on the school week within which the student withdraws. The effective date of withdrawal is determined by the Dean of the school in which the student is enrolled, and is recorded on the official withdrawal form, which the student must complete as part of the withdrawal process.

Residence Hall: No refund of residence hall rent shall be made in the event of withdrawal after the fifth class day of each semester. Upon vacating student housing facilities, the room key must be returned to the Student Accommodation Office. The date the room key is returned to the Student Accommodation Office is the effective termination date of the student housing contract.

Dining Services: The Dining Services contract covers meal plans for both fall and spring semesters. Students wishing to cancel their contract must notify the Contract Coordinator at (434) 982-5140 by the specified deadline. There is a $50 non-waiver administrative fee to cover processing charges. This charge is also assessed to students withdrawing from the University. For further information regarding contract meal plans and charges call (434) 982-5124 or visit their website.

E-mail comments to:
Last Modified: Wednesday, 17-August-2005 19:15:24 EDT
Copyright 2014 by the Rector and Visitors of the University of Virginia