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This refund policy applies only to full- and part-time students enrolled in regularly scheduled courses at Worcester State University who are receiving Federal Title IV Financial Aid.
This policy is mandated by federal regulation.
Matriculated students who fail to take a course during a calendar year will be administratively withdrawn from Worcester State. Students who wish to permanently withdraw from Worcester State or take a temporary leave of absence must complete appropriate forms in the Academic Success Center. If the withdrawal or leave of absence is filed prior to the last day to withdraw from courses for the term, “W” will be recorded on the student’s record. Students who file for leave of absence or withdrawal after the last day to withdraw from courses for the term may petition if they feel circumstances warrant the recording of “W” for all courses enrolled for that term. Normally, a leave of absence is for one semester; however, a student may have up to one year to return to Worcester State. Failure to return at the specified time will result in an administrative withdrawal from Worcester State.
Return of Title IV funds is based on the date a student completely withdraws from Worcester State as determined by the Registrar. During the first 60% of the semester a student earns Title IV funds in direct proportion to the length of time he or she remained enrolled. A student who remains enrolled beyond the 60% point earns all aid for the semester. The 50% point of the semester is used for unofficial withdrawals.
The percentage of the semester that a student remains enrolled is derived by dividing the number of days a student remains in attendance by the number of days in a semester. Calendar days are used but breaks of at least five days are excluded from both the numerator and the denominator.
Post-Withdrawal Disbursements: Federal regulations require that Worcester State notifies the parent of late PLUS Loan disbursement and/or the student of late Federal Direct Student Loan disbursement. In addition, the University requires confirmation from the parent and/or student that they accept this late disbursement. Worcester State processes a Return of Title IV funds calculation to determine if a student is eligible for a post-withdrawal disbursement. If the student and/or parent decides to accept the late disbursement the University can reinstate the loan up to 120 days from last attendance.
Post-Withdrawal Disbursements:
Federal regulations require that Worcester State notifies the parent of late PLUS Loan disbursement and/or the student of late Federal Direct Student Loan disbursement. In addition, the University requires confirmation from the parent and/or student that they accept this late disbursement.
Worcester State processes a Return of Title IV funds calculation to determine if a student is eligible for a post-withdrawal disbursement. If the student and/or parent decides to accept the late disbursement the University can reinstate the loan up to 120 days from last attendance.
Worcester State utilizes Return of Title IV funds on the Web through FAA Access to CPS online to perform all Return of Title IV funds calculations.
All Title IV returns are reversed from the student’s account and refunded to the appropriate Title IV programs. The student is informed of the result of the Return of Title IV funds in writing via a Financial Aid Revision Form.
Title IV funds are returned in the following order (within 45 days of the date Worcester State determined that the student withdrew):
See examples below.
EXAMPLE 1: Student 1 stopped attending classes on November 8. The semester began on September 6 and is 109 days long. Student 1 attended 64 days and has earned 58.7% of his financial aid (64 days divided by 109 days equals 58.7). Student 1 received in aid: Federal Pell Grant $1,083 Federal Direct Subsidized Loan $1,750 Federal Direct Unsubsidized Loan $1,000 Federal Parent Loan $5,210 Total aid = $9,043 The amount of federal aid earned is 58.7% x $9,043 = $5,308.24 Total federal aid unearned is $9,043 – $5,308.24 = $3,734.76 The second calculation determines percentage of amount unearned based on school charges for tuition. Student 1 was charged $5,366 in tuition and did not live on campus. Percentage of unearned aid for this second calculation is 100% – 58.7% = 41.3%. Therefore, unearned aid based on the tuition charges for the semester, $5,366 x 41.3% = $2,216.16. The amount of federal aid Student 1 must return is the lesser of step 2 or 3 ($2,216.16 in the example). Federal guidelines determine the order of aid types to be reduced. Therefore Student 1’s aid will be reduced accordingly: Federal Direct Unsubsidized Loan $0 ($1,000 returned) Federal Direct Subsidized Loan $534 ($1,216 returned) Federal Parent Loan $5,210 (no adjustment) Federal Pell Grant $1,083 (no adjustment) The total returned amount of $2,216 will be reversed from Student 1’s account and returned to the appropriate Title IV funds reducing Student 1’s total aid to $6,827. EXAMPLE 2: Student 2 stopped attending classes on March 1. The semester began on January 6 and is 111 days long (excluding a 5 day break). Student 2 attended 44 days and has earned 39.6% of his financial aid (44 days divided by 111 days equals 39.6). Student 2 received in aid: Federal Pell Grant $2,907 Federal Direct Subsidized Loan $2,250 Federal Direct Unsubsidized Loan $1,000 Total aid = $6,157 The amount of federal aid earned is 39.6% x $6,157 = $2,438.17 Total federal aid unearned is $6,157 – $2,438.17 = $3,718.83 The second calculation determines percentage of amount unearned based on school charges for tuition. Student 2 was charged $3,318 in tuition and did not live on campus. Percentage of unearned aid for this second calculation is 100% – 39.6% = 60.4%. Therefore, unearned aid based on the tuition charges for the semester, $3,318 x 60.4% = $2,004.07. The amount of federal aid Student 1 must return is the lesser of step 2 or 3 ($2,004.07 in the example). Federal guidelines determine the order of aid types to be reduced. Therefore Student 1’s aid will be reduced accordingly: Federal Direct Unsubsidized Loan $0 ($1,000 returned) Federal Direct Subsidized Loan $1,246 ($1,004 returned) Federal Pell Grant $2,907 (no adjustment) The total returned amount of $2,004 will be reversed from Student 2’s account and returned to the appropriate Title IV funds reducing Student 2’s aid to $4,153.
EXAMPLE 1:
Student 1 stopped attending classes on November 8. The semester began on September 6 and is 109 days long. Student 1 attended 64 days and has earned 58.7% of his financial aid (64 days divided by 109 days equals 58.7).
Student 1 received in aid:
The total returned amount of $2,216 will be reversed from Student 1’s account and returned to the appropriate Title IV funds reducing Student 1’s total aid to $6,827.
EXAMPLE 2:
Student 2 stopped attending classes on March 1. The semester began on January 6 and is 111 days long (excluding a 5 day break). Student 2 attended 44 days and has earned 39.6% of his financial aid (44 days divided by 111 days equals 39.6).
Student 2 received in aid:
The total returned amount of $2,004 will be reversed from Student 2’s account and returned to the appropriate Title IV funds reducing Student 2’s aid to $4,153.
