Withdrawal from Class and Return of Funds
When a student who has received federal financial aid funds (Title IV funds) withdraws from the College during a semester, federal regulations require the College to determine the amount of “unearned” funds that must be returned to the federal aid programs. This requirement is effective only if the student completely terminates enrollment (i.e., cancels his/her registration, withdraws, or is dismissed) or stops attending classes before completing more than 60 percent of the semester.
The amount of Title IV funds “earned” is determined by multiplying the total amount of Title IV aid (other than federal work-study) for which the student qualified during the semester by the percentage of time the student was enrolled during the semester. The percentage of time enrolled is determined by dividing the number of calendar days enrolled (through the withdrawal date) by the total number of calendar days in the semester (less any scheduled break of 5 or more days). The difference between “earned” funds and total Title IV funds awarded is “unearned” and must be refunded. Once a student has completed more than 60% of the semester, he or she earns 100% of the Title IV funds awarded for the semester.
The Unearned Amount of Title IV aid must be returned to the applicable Title IV aid programs in the following order:
- Direct Unsubsidized Loan
- Direct Subsidized Loan
- Direct PLUS Loan
- Pell Grant
- ACG Grant
- Other Title IV aid
State and Institutional Refund Policy
State and institutional funds will be adjusted whenever a student drops credit hours or withdraws completely during the semester. Those funds must be refunded to either the State (per regulations) or to the College. Institutional funds will be refunded based upon the Title IV Withdrawal Refund schedule when appropriate.
Ohio College Opportunity Grant Refund Policy
The purpose of this document is to describe the reimbursement policies campuses are required to follow regarding the Ohio College Opportunity Grant (OCOG) program. The OCOG reimbursement policies go into effect beginning in AY 2006-2007, and are analogous to those used for the Ohio Instructional Grant (OIG) program.
Calculating an OCOG Refund for Students Who Withdraw from All of Their Courses at the Institution
If a student withdraws from the institution during an academic term, the amount of the OCOG refund will be determined by the refund schedule of the institution. The total refund as a percent of the total instructional and general fees charged to the student shall constitute the percent of the OCOG award for the term which is to be refunded to the Ohio Department of Higher Education.
For example, if a student withdraws and is entitled to a refund of 85 percent of the total instructional and general fees charged for the term, the institution must refund 85 percent of the student’s OCOG allotment for the term to the Ohio Department of Higher Education. If a student withdraws and is entitled to a refund of 100 percent of the total instructional and general fees charged for the term, the institution must refund 100 percent of the student’s OCOG allotment for the term to the Ohio Department of Higher Education.
Calculating an OCOG Refund for Students Who Drop Below 12 Credit Hours (or the Equivalent)
If a student reduces his or her enrollment to three-quarters time, one-half time, or less than half-time prior to an institution’s census or “freeze” date, the OCOG allotment for the term must be reduced to the corresponding enrollment level.
If a student drops below 12 credit hours after the institution’s freeze date, but during the institution’s refund period, the amount of the OCOG refund will be determined by the percentage reduction in the student’s actual fee charges.
For example, if a student drops from 12 credit hours with tuition/fee charges of $450 to 8 credit hours with tuition/fee charges of $340, the tuition fee reduction would be $110 or 24 percent. Consequently, the institution would refund 24 percent of the student’s OCOG allotment for that term to the Ohio Department of Higher Education.
The student will be billed and financially responsible for any and all payment(s) due to the College resulting from the above policies.
Examples of Return of Funds calculations are available in the Financial Aid Office.