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For assistance, please call the Office of Scholarships and Financial Aid, located in Suite 246 at 1303 San Jacinto Street, Houston, TX 77002.
Fax: 713-659-3807 |
Withdrawal and Return to Title IV Policy
Federal Regulations require a statutory calculation to determine the amount of Student Financial Assistance (SFA) Program Funds a student has earned when he or she ceases attendance (drops all courses) based on the period the student was in attendance.
Up through the 60% point in each payment period or period of enrollment, a pro rata schedule is used to determine how much SFA Program funds the student has earned at the time of withdrawal. After the 60% point in the payment period or period of enrollment, a student has earned 100% of the SFA Program funds.
South Texas is required to calculate the amount of SFA Program funds the student did not earn and return those funds to the lender.
The amount of SFA Program assistance earned is the percentage of SFA Program assistance that has been earned multiplied by the total amount of SFA Program assistance that was disbursed (or could have been disbursed) for the payment period or period of enrollment as of the day the student withdrew.
The percentage and amount not earned is the complement of the percentage of SFA Program assistance that was disbursed (and that could have been disbursed) to the student for the payment period or period of enrollment, as of the day the student withdrew.
For credit hour programs, the percentage of the payment period or period of enrollment completed is the total number calendar days in the payment period or period of enrollment for which the assistance is awarded divided into the number of calendar days completed in that period as of the day the student withdrew.
If the student receives less SFA Program assistance than the amount earned, the school must comply with the procedures for late disbursements specified by the Department of Education. If the student receives more SFA Program assistance than the amount earned, the school, or the student, or both, must return the unearned funds as required, and in the order specified, below.
The school must return the lesser of:
- The amount of SFA Program funds that he student does not earn; or
- The amount of institutional costs that the student incurred for the payment period or period of enrollment multiplied by the percentage of funds that was not earned.
The student must return or repay, as appropriate, the remaining unearned SFA Program grant and loan funds for which he or she is responsible to loan programs in accordance with the terms of the loan, and to grant programs as an overpayment. Grant overpayments are subject to repayment arrangements satisfactory to the school, or overpayment collection procedures prescribed by the Secretary of the Department of Education. A student who fails to return the required Title IV funds loses eligibility for future Title IV aid until he or she repays the amount in full, makes satisfactory arrangements with the institution to repay the funds, or makes satisfactory payment arrangements with the US Department of Education (ED)
Funds credited to outstanding loan balances for the payment period or period of enrollment for which a return of funds is required must be returned in the following order:
- Federal Direct Unsubsidized loans
- Federal Direct Subsidized loans
- Federal Direct Graduate PLUS loans
It is important to understand these regulations and their financial impact. Depending on the date of withdrawal, amounts in excess of the institutional tuition refund (if any) credited to your account may be returned to the lender resulting in a balance due the college. If students are considering withdrawing and are required to do so prior to submitting a withdrawal form to the Registrar’s office, they are encouraged to speak with a financial aid counselor.