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Rights & Responsibilities - Withdraw Policy

Law Governing Financial Aid and Withdrawal
The Higher Education Act of 1998 established new rules regarding how colleges and universities determine the amount of financial aid that a student can retain if he/she withdraws. The new law was implemented at Frostburg State University in Fall 2000. The following information describes how this law will be applied using a specific formula that the government has defined.


Implications of Withdrawal from the University
Effective Fall 2000, all students who withdraw or are dismissed from the university (including unofficial withdrawals) and attend less than 60% of the enrollment period (semester), will have their Title IV federal financial aid prorated based on the actual days of attendance. Therefore, before a student considers withdrawal, he/she should meet with a financial aid counselor to determine the financial impact on his/her federal financial aid. Title IV Federal aid includes Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (SEOG), Federal TEACH Grant, Federal Perkins Loan, Federal Stafford Loan (Subsidized and Unsubsidized), Federal Parent Loan to Undergraduate Students (PLUS) and Federal Graduate PLUS loan funding.

Official withdraws are students who complete the required paperwork and return it to the Registrar’s Office for processing. 

Unofficial withdraws are determined at the end of the semester once grades are posted.  Students who cease to attend classes receive a FX as a final grade.  Any student who receives a FX grade will be evaluated to see if the last date of an academic activity reported by the instructor is before the 60% point. 

Summer is considered one term with multiple mini-terms imbedded within the time period.  Therefore; for return of title IV funds, FSU will be required to use the new law established in the Higher Education Amendments of 2009.  The law requires schools to determine the exact date a student withdraws from a module and if the student is still enrolled in future modules.  If the student is not enrolled in future modules the return of title IV funds will be calculated.  If the student remains enrolled in future mini sessions the return of funds calculation is not required.  However; if the student fails to attend a future mini session or the course is cancelled, the return of funds will be calculated.

Leave of Absence from Frostburg is considered a total withdraw from the University.  After the leave of absence is processed all courses are given the grade of W or WF depending on the date of withdrawal.  If the leave of absence is taken before 60 % of the enrollment period elapses, the return of title IV funds will be calculated.

Under this policy, the Financial Aid Office will determine the percentage of Title IV aid earned based on the length of enrollment. Once determined, the student may be responsible for charges that were once covered by Title IV aid. In some cases, a student may have to repay a portion or all of his/her refund as a result of withdrawing before 60% of the enrollment period elapses. After the unearned portion of financial aid has been established, the funds will be returned to the federal programs in the following order: Unsubsidized Stafford Loans, Subsidized Stafford Loans, Federal Perkins Loans, Federal PLUS Loans, Federal Pell Grants, Federal TEACH Grants and Federal Supplemental Educational Opportunity Grants. In cases where a student is receiving institutional funds, he/she should check with the Financial Aid Office for policies concerning these awards.

Frostburg State University will return all unearned funds to the federal government on behalf of the student.  With the University returning the federal funds, a student will then owe the University.  The student should contact the University Billing Office to make payment arrangements. If a student fails to repay the University for returning funds, the remaining debt owed to the University will be submitted to the state collection agency.