Federal Refund Policy
If a student receives federal financial aid and withdraws from all classes before completing at least 60 percent of the semester, federal regulations require that the "unearned" portion of any federal financial aid received be returned to the appropriate federal aid source. The University would be required to return a portion of the federal funds used to pay institutional charges and the student could be required to repay a portion of federal funds that were disbursed to them to be used for other educational expenses. After the 60 percent point in a semester, no repayment is required. Depending on the withdrawal date, the student may incur charges from the University, the repayment of which the student would be responsible.
If the University determines that the student never attended classes, 100 percent of aid received must be returned to the appropriate source and University charges may be incurred. If a student does not officially withdraw and fails to earn a passing grade in at least one enrolled course during the semester, the financial aid office will verify if the failing grades were earned or were the result of non-attendance. If non-attendance is determined, the "unearned" calculation will be applied based on the last date of attendance or the mid-point of the semester.
Dropping/Adding Classes – Each semester has a financial aid freeze date. At the beginning of a semester, your aid (PELL and SEOG) is paid based on your enrollment status (full time, ¾ time, ½ time or less than ½ time). During the add/drop week, you may increase or decrease your credit hours. If your enrollment status changed during that period, your aid will be readjusted. Example: If you are paid full time Pell then drop to ¾ or ½ enrollment, your Pell will be recalculated and may cause you to have to repay Pell. If enrollment increases, your Pell could also increase. After the add/drop period (Pell Freeze Date), your aid will not be adjusted. Students taking block courses must be registered for those classes prior to the end of the change of schedule period. Loans require minimum enrollment of at least six credit hours. Scholarships – check the scholarship enrollment criteria.
Withdrawal from all classes (federal refund policy): – If you withdraw from all classes during a semester, you may have to repay some of your federal student aid. Through the 60 percent point in a semester, a pro-rata schedule is used to determine how much Student Financial Aid (SFA) funds you have earned. Any unearned portion would have to be returned to the SFA Program. The school would return a portion of SFA funds used to pay institutional charges and the student would repay a portion of SFA funds that were disbursed to them to be used for other educational expense. After the 60 percent point in a semester, the percentage is 100 percent. No repayment is required.
Disbursement of Funds
Your award letter normally indicates how your award is divided (fall, spring). At the beginning of each semester, we will credit your student account with the funds (Pell, SEOG, scholarships). Stafford Direct Student Loan funds are applied once the funds have been received from the government. If your aid exceeds institutional charges, books can be charged at the Drago College Store during the designated period. After the book charge period, any balance of funds will be disbursed to the student. Financial aid credit balances are not disbursed until after attendance and participation have been verified. Refunds are typically released four/five weeks after classes start for the fall or spring semesters. Summer credit balances would disburse approximately three to four weeks after classes start. Contact the financial aid office for more details. Students can use the Deferred Payment Plan to cover their fees until their financial aid is processed. Contact the business office for information regarding the plan. To qualify for federal financial aid, you must be in attendance. Class attendance could be verified before funds are disbursed.