Financial Aid for Complete Withdrawals

Students who have received financial aid and are withdrawing from Drake University are subject to federal Title IV return of funds guidelines.  During the first 60% of the semester, financial aid from (Title IV funds), certain state, and institutional programs are earned based on the number of days the student remains enrolled.  The percentage of the period that the student remained enrolled is derived by dividing the number of days the student attended by the number of days in the semester. 

Calendar days are used and breaks of five or more days are excluded from both the numerator and denominator.  Scheduled breaks are measured from the first day of the break to the next day that classes are held.  If a break begins on Wednesday and no classes are held the following weekend (classes resume on Monday), the five day break would be excluded from the calculation. (i.e. Thanksgiving break)

The total amount of unearned Title IV program funds, other than Federal Work Study earnings, must be returned. Unearned Title IV aid is the amount of the disbursed aid that exceeds the amount of aid earned under the federal calculation. Title IV funds that are required to be returned are credited in the following order: Federal Unsubsidized Stafford Loans, Federal Subsidized Stafford Loans, Federal Perkins Loan, Federal PLUS (Graduate Student), Federal PLUS (Parent), Federal Pell Grant, Federal SEOG, TEACH Grant (Drake is not a participant in this program), other Title IV aid.

Students, who received more funds than they were entitled to as a result of the Title IV recalculation, may need to repay unearned program funds.

Unearned state and institutional program funds are to be returned to their specific programs. Funds from private scholarships are returned to their programs per their individual regulations. 

Private loans and payments made by students and/or parents are not subject to the earned aid percentage calculation.  These funds are used to pay the remaining balance after adjustments of federal, state, institutional charges have been completed.  Any credit balance remaining is returned to the source of payment.

Students who remain enrolled beyond the 60% point earn all aid for that semester. The 60% point must be met, without rounding off to the nearest percent, to earn all of aid for the semester.

Institutional costs play no role in determining the amount of Title IV funds to which a withdrawn student is entitled. Students will be responsible for payments of costs not covered by the amount of aid earned. Student/parent payments toward original charges may not be refunded in the same proportion as the revised aid.

This policy is subject to federal regulations, specifically, the Higher Education Amendments of 1998, Public Law 105-244.  Please contact the Office of Student Financial Planning to discuss individual circumstances.

 

Example of a Fall Recalculation

The enrollment period for the fall 2014 semester contains 105 days.  Examples for fall 2014 percentages:

Withdrawal on Day 1 = 1/105 = 1%
Withdrawal on Day 2 = 2/105 = 1.9%
Withdrawal on Day 68 = 68/105 = 60%

This example is for illustration purposes only. Actual charges and refund amounts may vary. The following is an example of charges and credits for a student who completely withdrew from classes on the 49th day in the fall semester (49/105 = 46.7 percent). This student paid in full before withdrawing.

Original Charges

 

Revised Charges

$16,050

Tuition

$7,495

$73

Fees

$73

Original Financial Aid

 

Revised Financial Aid

$2,723

Stafford Loan

$1,272  (retained amount)

$1,600

Drake Grant in Aid

$ 747  (retained amount)

$6,000

Presidential Scholarship

$ 2,802 (retained amount)

Total Original Aid

 

Total Revised Aid

$10,323

 

$4,821

Student Payment

 

Balance

$5,800

 

$3,053 (credit)

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