Financial Aid

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Repayment of Federal Funds Policy For Students Who Withdraw or Cease Attending


Students who are withdrawing from Utah State University and who have Federal Financial Aid should meet with their financial aid counselor prior to withdrawing.

Financial aid comes with standards and limitations to encourage you to graduate in a timely manner. Students who completely withdraw from the University during the course of a semester are required to return a percentage of their Federal Student Financial Aid. All types of Federal Financial Aid are included in this repayment, including: Pell Grants, Supplemental Grants, Perkins Loans, and Direct Loans.

The amount of repayment is based on the percentage of the semester completed. For example, if a student withdraws after completing 40% of the semester (calculated using calendar days), the student must return 60% of his or her Federal Student Aid. Students who withdraw, or cease attending, after completing 60% of the semester are not required to return aid. (However, they may still face suspension from financial aid for failing to complete the required number of credits. See satisfactory academic progress policy.)

If the student is eligible for a refund of tuition and fees, according to the University refund policy, the refund will be applied to the Federal Financial Aid obligation. A refund may not completely repay the obligation. The student will not be allowed to register for future classes, nor be eligible for future financial aid, until the debt is repaid.

Example:
A student has Federal Aid in the following amounts:
Pell Grant..................................................$1,500
Perkins Loan..............................................$1,200
Direct Loan................................................$2,750
Total Aid...................................................$5,450

If the semester has 115 calendar days and the student completely withdraws from the University on day 20, the repayment would be calculated as follows: 115/20 = 17% of the semester completed, and 83% not completed. Therefore, 83% of the Federal Aid must be repaid (i.e., $5,450 x 83% = $4,523.50 must be repaid).

Withdrawal on day 20 would still allow a 100% refund of tuition and student fees. If the student owed USU $1,400, the refund would also be $1400. Therefore, $1400 would be applied to the repayment:

$4,532.50 - $1400 = $3,132.50 - this is the amount that must still be repaid to USU. Students that withdraw from USU after the third week of school are generally do not receive tuition refunds.

Please note that Pell grant recipients must document academic participation in each of their classes (including attending class, taking exams, turning in assignments, etc.) in order to avoid repaying additional grant money in addition to the returns discussed above.

Students who receive all F’s for the semester must document participation in an academic activity (including attending class, taking exams, turning in assignments, etc.) through sixty percent of the semester or will have to repay some or all of the federal funds received.

Note: Loan and Grant funds returned by the school because of withdrawal must be repaid immediately to USU. Remaining loan funds will go into repayment according to the terms of the loan.

This policy is federal law and may not be appealed. Further details are available from the Financial Aid Office, TSC 106; (435) 797-0173.