Treatment of Financial Aid due to Withdrawal
Students receiving financial aid who withdraw or stop attending all courses may be required to return a portion of financial aid received per federal, state, institutional or organizational regulations and policies associated with the funding type received. You should review the complete policy below and carefully consider the potential financial impact of withdrawing from or quitting your UK courses. If you have any questions, please do not hesitate to contact us.
Return of Federal Title IV Funds
Federal financial aid recipients who withdraw from the semester before 60 percent of the term is completed are subject to Return to Title IV regulations. These regulations view aid as a resource for the entire term; aid is earned for the number of days attended, but unearned for the days that will be missed due to withdrawal. Unearned aid must be returned to the appropriate aid programs. Refer to the complete Withdrawal & Return of Financial Aid Funds Policy for more information.
Return to Title IV Calculation:
Federal regulations prescribe the calculation of a student's eligibility for federal financial aid funds based on withdrawal date and number of days attended in the semester. Determine the percentage of earned aid by dividing the number of days attended by the number of days in the semester. (When the earned aid is 60% or greater, without rounding, then federal aid is not returned.) Subtract the earned aid percentage from 100% for the unearned percentage. Multiply the unearned percentage by the charges for tuition and fees, room and board on the student's account. The result is approximately the amount of aid that will be returned to federal aid programs. Loans are refunded before grants.
A sophomore withdraws three weeks into the semester. She was charged tuition of $3,548. A $2,250 Subsidized Direct Loan paid the majority of charges; she paid the remainder from savings and has a $0 balance on her student account on the day of withdrawal. There are 109 days in the semester; she attended 23.
- Percentage of earned aid = 23/109 = 21.1% earned.
- Unearned aid = 100% - 21.1% (earned) = 78.9% unearned.
- $2,250 (aid received) X 21.1% = $474.75 earned.
- $2,250 - $474.75 = $1,775.25 unearned.
- Amount of Aid to be Returned by School = Institutional charges times unearned percentage; $3,548 X 78.9% = $2,799.37.
- Since $2,799.37 exceeds the amount of unearned aid, the lesser number is used. $1,775 of the Subsidized Direct Loan disbursement would be reversed from her student account. The loan debt is reduced but since the tuition refund was $1,774, the student owes the university $1.00. ($1,774- $1,775 = $-1.00.)
Return of State Aid Funds
State aid is treated differently than federal financial aid when a student withdraws during a term. State aid refunds are calculated proportionally based on the percentage of tuition and registration fees to be refunded to the student per the University Fee Liability Policy. For example, a student entitled to a tuition and fees refund of 80% (responsible for 20% charges) will be eligible to retain 20% of total state aid. According to this policy, following the fourth week of the term, no tuition or registration fees will be refunded; therefore, no state aid will be returned. Pursuant to state regulations, Kentucky state grant and scholarship funding will be returned in full at any time that tuition and fees are reduced to zero ($0.00). Refer to the complete Withdrawal & Return of Financial Aid Funds Policy for more information.
Return of Institutional Funds
Refunds of University funds are calculated proportionally based on the percentage of tuition and registration fees to be refunded to the student per the University Fee Liability Policy. When a student withdraws and is due a refund of tuition and registration fees according to the University's policy, the student will be eligible to retain each institutional aid type at the same percentage charged for tuition and fees. For example, a student entitled to a tuition and fees refund of 80% (responsible for 20% charges) will be eligible to retain 20% of each institutional aid type in the financial aid package. For funding types restricted to covering actual tuition and fees, any reductions in tuition and fee charges will require equivalent reduction of the tuition-specific aid amount to align with actual charges. Refer to the complete Withdrawal & Return of Financial Aid Funds Policy for more information.
Types of Withdrawal
Official Withdrawal (withdrawing from all courses or quitting):
An Official Withdrawal refers to removing all courses from your schedule and no longer attending the University for a specific term. Visit the Registrar site to withdraw from the University after considering the potential impact to your financial aid and tuition obligation.
Unofficial Withdrawal (quitting without going through the official withdrawal process):
Students who receive all failing or non-passing grades for a semester are assumed to have ceased attendance and are considered an unofficial withdrawal. Students with all E grades are also subject to Return to Title IV regulations. In addition to the implications all E grades have for satisfactory academic progress, federal financial aid recipients are also subject to Federal Return to Title IV regulations and are considered unofficially withdrawn at the midpoint of the semester. Without acceptable proof of attendance or participation in a class related activity beyond the midpoint of the semester, the federal Title IV financial aid credited for the term is refunded to the aid program(s) from which it came at the rate of 50 percent of university charges. Loans are refunded before grants. For example, a student with a $2,750 Subsidized Direct Loan and $1,500 Pell Grant fails all of his/her classes for a semester. His/her charges totaled $3,651. Federal regulations require that 50% ($3,651 x 50%) or $1,826 be refunded for the Subsidized Direct Loan. The student's loan debt decreases, but he/she owes the University $1,826 (assuming his/her account balance was $-0-).
If you did not receive all of the funds that you earned, you may be due a post-withdrawal disbursement. The Office of Student Financial Aid & Scholarships determines if a student is eligible to receive Title IV funds that were awarded but not yet disbursed to the student at the time of his/her withdrawal from school and will notify the student of this eligibility.
Retaining Eligibility for Financial Aid
Please note that withdrawing may have an effect on your Satisfactory Academic Progress. All students must continue to meet the requirements for eligibility that were necessary for them to receive an offer of assistance.