Treatment of Federal Financial Aid When a Student Withdraws
The US Department of Education requires Wentworth Institute of Technology (WIT) to maintain and disseminate a written policy regarding federal financial aid recipients who withdraw or otherwise fail to complete the term for which their financial aid was disbursed.
Federal financial aid funds are packaged to a student under the assumption that the student will attend school for the entire period for which the assistance is given. When a Federal financial aid student withdraws, the student may no longer be eligible for the full amount of Federal financial aid funds that the student was originally scheduled to receive.
Up through the 60% point in each semester, a pro rata schedule is used to determine the amount of Federal financial aid funds the student has earned at the time of withdrawal. After the 60% point of the semester, federal regulations affirm that a student has earned 100% of the Federal financial aid funds he or she was scheduled to receive during the semester. For a student who withdraws after the 60% point-in-time, all funds are earned.
If the recipient of a Federal grant or Federal loan withdraws from school after beginning attendance, the amount of the Federal grant or Federal loan assistance earned by the student must be determined. If the amount disbursed to the student is greater than the amount the student earned, unearned funds must be returned.
Students who wish to withdraw from Wentworth are required to submit a completed the Voluntary Withdrawal Form at and submit it to the Registrar’s Office. If you live in a residence hall, you must meet with the Resident Life Staff and submit the appropriate forms.
Withdrawal Date and Calculation of Earned and Unearned Federal Financial Aid
For purposes of this policy, the date of withdrawal will be the date the student begins the withdrawal process or the date, as determined by WIT, that the student otherwise notified WIT in writing or verbally, of their intent to withdraw to zero credits.
The amount of aid earned is calculated by dividing the number of calendar days from the beginning of the term of the point of withdrawal by the total number of days in the term. This percentage is multiplied by the amount of federal financial aid that was given and accepted for the term and becomes the amount of aid that was earned. This amount is subtracted from the amount of aid disbursed and the balance becomes the amount of unearned aid that must be returned.
Responsibility for repayment of these funds will be shared by WIT and the student, according to policies and procedures contained within the federal formula for proration of refunds of unearned Federal Financial Aid.
A student may be eligible for a post-withdrawal disbursement if the amount of earned aid is more than the disbursed aid. Students will be notified at the point of withdrawal if they are eligible for a post-withdrawal disbursement as determined by the Financial Aid Office.
Distribution of Unearned Federal Financial Aid
In compliance with federal regulations, a school must return Federal financial aid funds to the programs from which the student received federal aid during the payment period as applicable, in the following order, up to the net amount disbursed from each source:
- Unsubsidized Federal Direct loans
- Subsidized Federal Direct loans
- Federal Perkins loans
- Federal Direct PLUS loans
- Federal Pell Grants
- Federal Supplemental Educational Opportunity Grants (FSEOG)
Federal Work-Study funds paid to recipients will not be included in the computation of earned Federal financial aid, nor will these funds be refunded to the federal account from which they were paid.
Unearned Federal grant and Federal loan funds due from WIT will be repaid to the federal accounts for the specified semester. Unearned portions of Federal grant aid due from the student will also be repaid to the federal accounts by WIT. All repayments made by WIT pursuant to this policy will be charged to your student account. Any refund amount above the amount of unearned aid will be returned to the federal aid programs according to the distribution of Unearned Federal Financial Aid schedule.
Federal Regulations require that an institution must have a procedure in place for determining whether a Federal financial aid recipient who began attendance during a payment period completed the period.
For students enrolled in 15 week courses, if a student earns a passing grade in one or more of his or her classes offered over an entire period, for that class, WIT will presume that the student completed the course and thus completed the period of enrollment. For students enrolled in 7 week courses, the student is considered to have withdrawn from a payment period in which the student began enrollment if the student ceased attendance without completing all of the days the student was scheduled to complete in the period
The determination of unofficial withdrawals will occur after grades are posted at the end of each semester. For unofficial withdrawals, the withdrawal date that WIT will use is either the midpoint of the payment period or the last date of an academically related activity the student participated in.
Programs Offered in Modules
A program is ‘offered in modules’ if a course or courses do not span the entire length of the payment period. Therefore our 7-week sessions are considered modules. For all programs offered in modules, a student is considered to have withdrawn for Title IV purposes if the student ceases attendance at any point prior to completing the payment period.
Return to Title IV Calculation Example
15-week semester - A payment period start date is September 9 and the end date is December 12. The total days for the payment period is 98 days. The student withdraws on October 1 which is day 26 of the payment period. The percentage of earned aid would be 26.5% (26 days/98 days) and the unearned aid percentage is 73.5%.
- If the student received $5,500 in Title IV aid, then the student earned $1,457.50 in Title IV aid and $4,042.50 is the unearned amount.
- If institutional charges are $6,000, then the amount of earned charges would be $1,590 and the unearned charges would be $4,410.
- WIT is responsible for returning the lesser of the unearned institutional charges or the total amount of unearned Title IV aid, so WIT would return $4,042.50 in this example. The student is responsible for immediate payment of this account balance.
7-week sessions - A payment period start date is January 9 and the end date is April 21. Session One starts on January 9 and ends on February 24. Session Two starts on March 6 and ends on April 21. There is a 9-day break between Session One and Two. The total days for the payment period is 94 days (47 days in each session)
The student is registered for a course in Session One and a course in Session Two. The student earns a B in Session One and then withdraws on March 7 which is day 49 of the payment period. The percentage of earned aid would be 52.1% (49 days/94 days) and the unearned aid percentage is 47.9%.
- If the student received $5,500 in Title IV aid, then the student earned $2,865.5 in Title IV aid and $2,634.50 is the unearned amount.
- If institutional charges are $6,000, then the amount of earned charges would be $3,126 and the unearned charges would be $2,874.
- WIT is responsible for returning the lesser of the unearned institutional charges or the total amount of unearned Title IV aid, so WIT would return $2,634.50 in this example. The student is responsible for immediate payment of this account balance.
Return of Title IV funds requirements DO apply to a student who:
- Officially withdraws during a payment period; or
- Unofficially withdraws during a payment period (student stops attending without providing notification to the institute); or
- Ceases attendance during a payment period; or
- Graduates during a payment period.
Return of Title IV funds requirements DO NOT apply to a student who:
- Withdraws from some classes but remains enrolled in other courses during the same payment period at WIT; or
- Never attended any classes, or for whom WIT cannot document attendance in at least one class for the payment period or period of enrollment. If the student never attended any classes or WIT cannot document the student’s attendance in at least one class, the student did not establish eligibility for Title IV aid for the period and all funds must be returned.