Withdrawals and Return of Title IV Funds - 508.5
|University of Arkansas at Little Rock|
|Policy Name: Withdrawals and Return of Title IV Funds|
|Policy Number: 508.5|
|Effective Date: April 1, 2010 (review date)|
STUDENTS WHO WITHDRAW FROM THE SEMESTER MAY OWE A REPAYMENT OF FINANCIAL AID FUNDS.
Federal regulations dictate that a student who withdraws from the University of Arkansas at Little Rock after receiving federal financial aid (Pell Grant, SEOG, subsidized Stafford Loan, unsubsidized Stafford Loan or parent PLUS loan) may owe a repayment of those funds to UALR. The amount of repayment will be calculated based on the number of days the student attended before withdrawing.
In order to officially withdraw, students must obtain an official withdrawal form from the Office of Records and Registration. An official withdrawal does not penalize or prevent a student from re-enrolling at a future date. The deadline for withdrawing is listed in the academic calendar. If a student is out of town or for emergency reasons is unable to withdraw in person, he or she should contact the Office of Records and Registration by calling 501.569.3110 or faxing a letter to 501.569.8168. BOSS cannot be used to withdraw from the university during late registration or after classes start.
Students who cease attendance in all classes but do not complete the official withdrawal process are considered to have unofficially withdrawn from UALR. If a student unofficially withdraws after receiving federal financial aid funds, a return of Title IV funds calculation is required and the student may owe a repayment to UALR.
In general, the entire amount of aid a student is eligible to receive for a semester is paid to the student at the beginning of the term. The student is expected to budget those funds over the course of the semester to pay for educational expenses (tuition and fees, books and supplies, and other living expenses). If a student withdraws from the semester before completing the entire term, a calculation is required to determine if the student has “earned” all of the financial aid that he or she has received.
- First, a percentage is calculated based on the number of days the student attended divided by the number of days in the term. This percentage is the amount of the term the student has completed.
- If the student has completed 60 percent of the term or less, another calculation is required.
- The next calculation determines how much financial aid the student has “earned.” This is the percentage calculated in Step 1 multiplied by the amount of aid received.
- The amount of “earned” aid is subtracted from the amount of aid paid to the student.
- If the student has been paid more aid than he or she has “earned,” the student will owe a repayment to UALR.
- Financial aid funds will be repaid to the federal programs in the following order:
- Unsubsidized Federal Stafford loans
- Subsidized Federal Stafford loans
- Federal PLUS loans
- Federal Pell Grants
- Academic Competitiveness Grants
- National Smart Grants
- Federal Supplemental Educational Opportunity Grants
- If a student has been paid less aid than he or she has “earned” the student may be due a post-withdrawal disbursement of federal funds.
- The determination of whether a repayment is due UALR, or an additional disbursement is due the student, must be made no later than 45 days from the determination of a student’s withdrawal.
Students should see their financial aid advisor if they have questions or need additional information.
Source: Existing policy
Custodian: Office of Financial Aid