Q: What happens after my first year in college?
A: You need to reapply for aid each year using the FAFSA. Aid changes each year based upon changes in the family’s financial situation and changes in college expenses. Satisfactory Academic Progress Standards will also apply.
Q: What happens if I have to withdraw from school?
A: The Office of Financial Aid 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 percent of a payment period or term. The federal Title IV financial aid programs must be recalculated in these situations.
If a student leaves the institution prior to completing 60 percent of a payment period or term, the Office of Financial Aid recalculates eligibility for Title IV funds. Recalculation is based on the percentage of earned aid using the following Federal Return of Title IV Funds formula:
Percentage of payment period or term completed = the number of days completed up to the withdrawal date divided by the total days in the payment period or term. (Any break of five days or more is not counted as part of the days in the term.) This percentage is also the percentage of earned aid.
Funds are returned to the appropriate federal program based on the percentage of unearned aid using the following formula:
Aid to be returned = (100 percent of the aid that could be disbursed minus the percentage of earned aid) multiplied by the total amount of aid that could have been disbursed during the payment period or term.
If a student earned less aid than was disbursed, the institution would be required to return a portion of the funds and the student would be 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 institution.
If a student earned more aid than was disbursed to him/her, the institution would owe the student a post-withdrawal disbursement which must be paid within 120 days of the student’s withdrawal.
The institution must return the amount of Title IV funds for which it is responsible no later than 30 days after the determination of the date of the student’s withdrawal.
Q: What happens if I am convicted of a drug law violation during a period of enrollment during which I was receiving Title IV aid?
A: If you are convicted for any offense during a period of enrollment for which you were receiving Title IV program funds, under any federal or state law involving the possession or sale of illegal drugs, you will lose eligibility for any Title IV grant, loan, or work study.