Withdrawal Policy for Financial Aid Recipients
Title IV Funds
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, Direct Loans, Direct PLUS Loans, Federal Supplemental Educational Opportunity Grants (FSEOGs), and Federal Perkins Loans.
Though your aid is posted to your account at the start of each period, you earn the funds as you complete the period. If you withdraw during your payment period or period of enrollment (your school can define these for you and tell you which one applies), 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 not all of the funds that you earned have been disbursed, 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.
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. For example, if you are a first-time, first-year undergraduate student and you have not completed the first 30 days of your program before you withdraw, you will not receive any Direct Loan funds that you would have received had you remained enrolled past the 30th day. If you receive (or your school or parent receive 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 Direct 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 Ohio University may have. Therefore, you may still owe funds to the school to cover unpaid institutional charges. Ohio University may also charge you for any Title IV program funds that the school was required to return. Information regarding Ohio University’s policy for canceling registration, dropping classes, and withdrawing is at http://www.ohio.edu/policy/12-050.html or the Schedule of Classes.
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.
State, & Institutional Grants
If you receive financial aid that consists of state or university grant funds, they are subject to the University Refund Policy. For official withdrawal during the first 15 calendar days of the quarter, 80 percent of the grant funds will be returned to the appropriate program. For withdrawals after the first 15 calendar days of the quarter, 100 percent of the grant funds will remain on your student account.
Undergraduate and Graduate Scholarships
If you receive financial aid that consists of undergraduate or graduate scholarships, they are subject to a special University Policy. Official Withdrawal during the first 15 calendar days of the quarter, 100 percent of the scholarship funds will be returned to the appropriate program. For withdrawals after the first 15 calendar days of the quarter, 100 percent of the scholarship funds will remain on your student account.
College of Osteopathic Medicine Loans & Scholarships
Financial aid consisting of College of Osteopathic Medicine Scholarships, Loans for Disadvantaged Students, or Primary Care Loans is subject to a special University Policy. For official withdrawal during the first 15 calendar days of the quarter, 100 percent of the scholarship funds will be returned to the appropriate program. For withdrawals after the first 15 calendar days of the quarter, 100 percent of the scholarship funds will remain on your student account.
If you stop attending the University and do not officially withdrawal, it is considered to be an unofficial withdrawal and will be subject to the above Withdrawal Policies. The date of withdrawal will be the latest date based on a student’s attendance at an academically-related event. If the last date of attendance is not known, the midpoint of the quarter will be used as the withdrawal date.
If you never attend all of the courses you have registered for, you are considered to be an unofficial withdrawal. It is determined that you have not earned any financial aid. Therefore, all aid will be returned to the appropriate program.
If you are receiving financial aid, a change in your enrollment status or your withdrawal from the university may result in your having to repay programs from which you received financial assistance. In addition, you may owe fees to the university after funds are returned to the financial aid programs.
A student is not eligible for a refund until all Federal Title IV programs and other grants and scholarships are reimbursed as required and all outstanding balances with the university have been cleared.