Students are encouraged to meet with Financial Aid before dropping courses or withdrawing from the university.
Federal law mandates that students who withdraw either officially or unofficially from all classes may only keep the financial aid they “earned” via attendance up to the time of withdrawal. If students drop their classes prior to the 60% point of the semester, they may be required to repay a portion of their federal, state and institutional financial aid. If Title IV and/or institutional funds disbursed were in excess of the amount the student earned, the excess must be returned by Schreiner and/or the student to the federal government.
Financial aid is "earned" on a proportional basis for each day of the term that the student has attended. If a student completes 30% of the term, then he or she has earned 30% of the financial aid. If the financial aid has been credited to the account and has paid institutional charges only, 70% of the aid must be returned to the financial aid programs. The Office of Financial Aid will notify the student by mailed letter of any repayments due to the school, government, or lender.
Students who drop courses during the semester but are still enrolled fall under the institutional satisfactory academic progress policy . The Office of Financial Aid recommends that students who are considering dropping courses should review their plans with their academic advisor and their financial aid counselor. Failure to meet satisfactory academic progress may result in loss of aid or extended program length.
Federal funds are returned to the programs in the following order:
Unsubsidized Federal Stafford Loan
Subsidized Federal Stafford Loan
Parent Loan for Undergraduate Students (PLUS)
Federal Pell Grant
Federal Supplemental Educational Opportunity Grant (FSEOG)
If a student withdraws before the federal aid has been applied, the student may be eligible for a post-withdrawal disbursement. If that is the case, the Financial Aid Office will be notified of your withdrawal and will determine your eligibility for funds. If a credit is issued, The Accounting Services Office will issue a check for those funds.
If financial aid created a credit on the student's account that was then refunded to the student, the student will be required to repay 50% of any unearned grant amount. If the credit balance was created by a loan disbursement, the student will be required to repay the lender the amount of the loan as per the terms of the signed promissory note.
Example 1: Joe was awarded federal grants totaling $3000 and received Federal Stafford funds of $2500. Joe lived in a double dorm room and had a 19 meal plan. His total institutional charges equal $9627.
If Joe withdraws at the 30% point in the term, he will have earned $1650 of the $5500 awarded. 70% of the $5500 or $3850 must be returned to the federal programs. Schreiner will return the $2500 Federal Stafford Loan to the lender and $1350 of the federal grants. Assuming Joe had a zero balance on his student account at the time of withdrawal, he will be required to repay to Schreiner $3850.
Example 2: Joe was awarded federal grants totaling $3000 and received Federal Stafford funds of $2500. Joe lived in a double dorm room and had a 19 meal plan. His total institutional charges equal $9627.
The student withdrew at the 50% point of the semester. Only 50% of the $5500 or $2750 is considered earned. Schreiner would return $2500 to the lender and $250 of the federal grants. Assuming Joe had a zero balance on his student account at the time of withdrawal, he will be required to repay to Schreiner $2750.
Although financial aid must be returned to federal programs as prescribed by federal regulations, the Schreiner University Tuition Refund Policy does not refund tuition at the same percentages. Students will be required to pay any balances owing after the tuition refund and financial aid refunds have been calculated.
If part of the balance owed to Schreiner is the repayment of a federal grant, Schreiner has 30 days to notify the student of the balanced owed. The student has 45 days to either repay the funds or make satisfactory payment arrangements with The Financial Services Office. Students who fail to repay the funds within 45 days may be reported to the credit bureau.
Students should familiarize themselves with the Satisfactory Academic Progress (SAP) policies that govern all financial aid programs. Should students get out of compliance with the SAP rules and get suspended from financial aid, the Return to Title IV process may be required.