Award Letters - 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 Pell Grant, Supplemental Educational Opportunity Grant (SEOG), Perkins Loan, Stafford Loan (Subsidized and Unsubsidized), and Parent Loan to Undergraduate Students (PLUS) funding.

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, 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.