Return of Financial Aid Funds for UMW Students Who Withdraw from Classes
Students who withdraw from any or all classes after the start of a semester will have their aid reduced. Additionally, if proceeds have been disbursed it is very likely that eligibility will be pro-rated and funds returned to the appropriate programs.
The Return to Title IV (R2T4) Funds policy determines the amount of federal financial aid that must be returned by UMW and the student. (Title IV refers to federal funds.) The calculation is based on the actual number of days in the semester that were completed or “earned”. Unearned funds must be returned by the school and in some cases the student, to the appropriate sources.
UMW uses the R2T4 software provided by the Department of Education to compute the amount to be returned. The software determines the percentage of federal aid earned by calculating the # of calendar days the student completed in a payment period and dividing it by the # of calendar days in payment period. If results are 60% or greater, no funds need to be returned; if less than 60%, then the amount of aid earned by the student and amount to be returned by the student and UMW are calculated.
The amount of federal aid earned by the student is based on the percentage (described above) of aid that was disbursed or that could have been disbursed. If aid disbursed is equal to or less than aid earned no funds need to be returned. If aid disbursed is greater than aid earned, then UMW must determine the amount to be returned to federal programs by UMW and the student. If aid disbursed plus aid that could have been disbursed is greater than aid earned the student/parent may be entitled to receive additional funds.
The amount of FEDERAL funds UMW may use to pay Allowable Institutional Charges (AIC) is the same percentage as that calculated for aid earned. For example, if a student has ‘earned’ 30% of the aid, then UMW may use federal funds to pay 30% of the AIC. All other federal funds used to pay the student’s AIC must be returned. This may result in the student owing UMW. Likewise, if funds have been refunded to the student, he/she is entitled to keep only that same percentage of earned aid – in this example, 30%.
Funds are returned to Federal programs by UMW & Student in the following order:
- Unsubsidized Stafford: Student amount returned in accordance with terms of promissory note
– Subsidized Stafford: Student amount returned in accordance with terms of promissory note
– Perkins Loan: Student amount returned in accordance with terms of promissory note
– PLUS: Parent amount returned in accordance with terms of promissory note
– Pell Grant: Student amount to be returned reduced 50%
– ACG: Student amount to be returned reduced 50%
– National SMART: Student amount to be returned reduced 50%
– FSEOG: Student amount to be returned reduced by 50%
– Other FEDERAL aid not including FCWS
UMW notifies the lender of a student’s withdrawal date. Students who withdraw or drop below half time and have federal student loans will be sent or given Exit Counseling information.
Other financial assistance is returned to the programs as follows:
- Virginia funds: Percentage returned based on R2T4
– Other states: Determined by program guidelines
– UMW & private scholarships: Determined by program guidelines and or circumstances
*AIC for all students = Tuition, Fees, Books: Includes Room & Board if student living on campus