Withdrawing from a Term
Federal regulations require that if a student withdraws from all classes, a Return to Title IV (R2T4) calculation must be performed to determine how much of the student’s aid must be returned to the government, and how much may be retained by the student and/or school for costs incurred up to the point of withdrawal. (Note: Students who have been awarded federal aid, but withdraw before the first day of classes, will have 100% of any funds received returned to the federal government.)
The R2T4 provisions specify how universities must determine the amount of Title IV program assistance a student can keep if she or he withdraws from school. The Title IV programs that are covered by this law are:
- Federal Direct Unsubsidized Loan
- Federal Direct Subsidized Loan
- Federal Perkins Loan
- Federal PLUS Loan
- Federal Pell Grant
- Federal SEOG
- Federal Teach Grant
- Federal Iraq Afghanistan Service Grant
If a R2T4 calculation is done, aid is returned to the government in that order.
When a student withdraws during the semester, the amount of Title IV program assistance that the student has earned up to that point is determined by a specific formula. The amount of federal assistance that the student earned is determined on a pro rata basis. For example, if the student completed 30% of the semester, the student earned 30% of the assistance she or he was originally scheduled to receive. Once the student has completed more than 60% of the semester, the student has earned all the assistance (100%) that she or he was scheduled to receive for that term, and no aid has to be returned to the government.
The Return to Title IV policies govern only the amount of Federal Aid that must be returned in the case of a withdrawal. The amount of your actual charges (tuition, fees, etc.) is governed by separate rules. More information on what you will be charged in case of a withdrawal from all classes can be found on the Student Accounts web page at: http://www.ship.edu/Student_Accounts/Refund_Schedule/
Pennsylvania State Grants and Withdrawing from all Credits for a Term
If received, the Pennsylvania State Grant award (PHEAA) will be adjusted based on Shippensburg University's policy of refund/reduction in tuition charges for a full University withdrawal or leave of absence for the term. For example, if you are withdrawing during the third week of the term at a 40% tuition charge you will only be eligible to keep 40% of your PA State Grant award for the term; if your State Grant award was $1780 for the term you will only be eligible to keep $712 (1780 x .4) toward your charges for the term. The balance of your award for the term will be credited back to the Pennsylvania Higher Education Assistance Agency (PHEAA).
Students should be aware that withdrawing from all courses during a term could have an effect on their Satisfactory Academic Progress. Students should also be made aware that a return of funds to the federal government may create a balance due on their student account. Students should check with the Student Accounts Office once their Return to Title IV has been processed and aid has been adjusted. Students considering withdrawing from all their classes may want to make an appointment with a Financial Aid Counselor to discuss their situation prior to their withdrawal.