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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 awarded to a student under the assumption that the student will attend school for the entire period for which the assistance is awarded. 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 prorata 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 awarded 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.