Title IV- return of federal financial aid funds due to withdrawal
The Financial Aid Office is required by Federal regulation to calculate a Refund of Fees and a Return of Title IV funds for all students who withdraw during a semester. The policy applies to students who discontinue enrollment in all classes, on or after the first day of the term. The Return to Title IV Funds is the amount of unearned aid you received at the beginning of the term that must be returned to the assigned federal aid programs. Any aid received in excess of the earned amount is considered unearned. The earned portion is calculated on a daily basis using calendar days from the first day of instruction.
The calculated returned aid funds are credited to outstanding federal loan balances and grant programs received by the student in the following priority order:
- Unsubsidized Federal Direct Loans
- Subsidized Federal Direct Loans
- Federal Parent Plus
- Federal Perkins Loans
- Federal Pell Grants
- Federal SEOG
- Other Title IV assistance for which a return of funds is required
The student’s portion of the calculated amount attributable to a Title IV loan program may be repaid by the student according to the loan’s terms.
The student’s portion of unearned aid attributable to a grant will be reduced. The student has 45 days to enter into repayment arrangement with CSUMB or with the U.S. Department of Education.
The portion of financial aid to be returned is determined by the percentage of financial aid not earned by the student. The percentage of unearned aid is calculated according to the total Number of Calendar Days in the Semester Not Completed by the Student divided by Total Number of Calendar Days in the Semester
During the first 60% of the enrollment period, a student "earns" Title IV funds in direct proportion to the length of time that he or she remains enrolled. A student who remains enrolled beyond the 60% point earns all aid for the period.
A student who withdraws from the University before the 60% period (approximately before the 10th week of classes) may be required to return all or a portion of the Federal Financial Aid funds. The amount to be returned will be based on the formula stated above by calculating the financial aid funds that were used to pay the student's tuition and fees and campus housing obligations as well as the portion directly disbursed to the student.
Institutional refund policy
The refund policy requires that students officially drop all classes before the first day of classes for the term, to receive full financial credit of their registration fees and tuition (if applicable) and a full refund (less the enrollment confirmation fee). As stated above, a student who drops all classes on or after the first day of the term up to the 60 percent point of the semester will receive a pro-rata financial credit of registration fees and tuition (if applicable). If classes are dropped or a student withdraws after the 60 percent point of the semester, there will be no financial credit of fees. Financial Aid students who withdraw prior to the first day of classes are not eligible for any financial aid and will be required to repay any aid received.
Consequences of outstanding repayment obligation
CSUMB does not have the authority to waive or write off the repayment requirement regardless of the reason for the withdrawal, including extenuating circumstances such as illness, accident, or grievous personal loss.
A student who fails to return the unearned Federal Financial Aid funds will be referred to the U.S. Department of Education for collection and the University may withhold permission to register, to use facilities, or render services. Until the repayment issue is resolved, the student’s record will be “flagged” every time a student files a Free Application for Federal Student Aid (FAFSA). A student in repayment is ineligible for Financial Aid at any other institution in the nation.
Students who find it necessary to withdraw from CSUMB after enrolling for any academic term are required to follow the official withdrawal procedures. Failure to follow formal withdrawal procedure may result in the assignment of failing grades in all courses and the need to apply for readmission before being permitted to enroll in another academic term.
Students needing to withdraw begin the process by filling out the University Withdrawal form, available in the Office of the Registrar located the Student Services Building. For more information on the Withdrawal process, visit the Classes & Planning website.
Last Day to Add/Drop
Financial Aid will adjust your awards based on your enrollment on the last day to add/drop. Adjustments or additions to unit load after the last day add/drop will not be grounds for adjusting your financial aid award.
Course Repeat Policy
Financial Aid is required to monitor repeat classes for all periods of enrollment (including prior terms). Federal regulation limits the number of times a student may get paid financial aid for courses being repeated. Previously passed courses with a “D-” or better can only be repeated twice for financial aid payment. If you are repeating a course, it is recommended that you contact the financial aid office to get more information on how this policy may impact your awards. Please see the explanation below.
Once a student has achieved a “D-“ grade or better, a student can repeat the same course a second time and still receive federal financial aid. However, the third time the student is not eligible.