Withdrawing from School (Repaying Financial Aid)

Withdrawing from school may require repayment of financial aid.

When a student withdraws from school during a period in which the student began attendance, the school is required to calculate the amount of financial aid the student did not earn, and those funds must be returned.  The school must also calculate the amount of institutional charges that were not earned by the school.  At SGC, institutional charges include tuition, athletic, activity, and technology fees, and for students living in campus housing, the dorm fee.  Any remaining balance on a student's Declining Balance Account (DBA) is refunded upon the student's withdrawal.  For more information on SGC's Refund Policy, please refer to the Financial Matters section of the South Georgia College General Catalog.

Example A

Matthew enrolls full-time for the Fall 2000 term, which begins on August 18th and ends on December 7th.  The school determines that there are 106 days in the term, excluding holidays.

Institutional Charges

Since Matthew does not live on campus, his institutional charges consist of: $640 -  tuition; $39 - athletic fee; $27 -  activity fee, and a $38 technology fee.  These fees total $744.  Matthew receives a Federal Pell Grant of $1,375 to help pay these fees, along with other non-institutional expenses Matthew incurs while attending school, such as transportation.

Withdrawal Date

Matthew visits the Registrar's Office on September 12th and completes a total withdrawal form,thereby officially notifying the school of his intent to withdraw.  Since he is withdrawing on the 12th, he has attended only 25 of the 106 days in the term, or 23.58%.  The school must calculate a refund for any student who leaves school before attending at least 60% of the term.  Since Matthew did not attend 60% of the term, a refund must be calculated.

Step 1: Amount of Unearned Financial Aid

Since Matthew attended only 23.58% of the term, this is the percentage of financial aid he earned for the term.  Of the $1,375 Federal Pell Grant Matthew received, he earned only $324.23 ($1375 x 23.58%).  The remaining $1,050.77 ($1375 - 324.23) represents the unearned portion of aid that must be repaid.

Step 2:  Amount of Unearned Charges

Since Matthew attended classes for 25 days, SGC is entitled to keep $175.44 ($744 x 23.58%) of the fees charged to him for the term.  The remaining $568.56 ($744 - $175.44) represents the unearned portion of fees that must be returned.

Step 3:  Amount to be returned by the School

SGC is required to return the lesser of:  the amount of unearned financial aid or the amount of unearned charges.

Matthew's unearned financial aid: $1,050.77
Matthew's unearned charges: $568.56

Since unearned charges are less, SGC must return $568.56 to the Federal Pell Grant program.

Step 4:  Amount to be returned by the Student

Students are required to return any unearned portion of financial aid received; therefore, the remaining $482.21 ($1,050.77 - 568.56) must be returned by Matthew.  However, the Department of Education requires that any amounts returned by the student to a federal grant program should be reduced by 50%.  Since Matthew is returning funds to the Federal Pell Grant, the $482.21 he owes is reduced by 50%.  Therefore, he will repay $241.11.

SGC notifies Matthew on September 12th that he must repay $241.11.  He has 45 days from September 12th to repay the funds.  If he does not pay by that time, the school is required to report Matthew as being in overpayment on a federal grant.  He will be ineligible for any further federal or state aid until he repays the overpayment.

Example B

Katie enrolls full-time for the Fall 2000 term, which begins on August 18th and ends on December 7th.  The school determines that there are 106 days in the term, excluding holidays.

Institutional Charges

Since Katie lives in campus housing, her institutional charges consist of:  $640 - tuition; $39 -  athletic fee; $27 - activity fee; $38 -  technology fee, and a dorm fee of $937.  These fees total $1,681.  She must also pay $500 on a declining balance account (DBA) for her meals in the cafeteria.  Katie receives a Federal Pell Grant of $1,650 and a Federal Supplemental Educational Opportunity Grant of $300 to help pay these fees.  Katie pays the balance of $231 from her own resources.

Withdrawal Date

Katie visits the Registrar's Office on October 9th and completes a total withdrawal form, thereby officially notifying the school of her intent to withdraw.  Since she is withdrawing on this date, she has attended only 52 of the 106 days in the term, or 49.06%.  The school must calculate a refund for any student who leaves school before attending at least 60% of the term.  Since Katie did not attend 60% of the term, a refund must be calculated.

Step 1: Amount of Unearned Financial Aid

Since Katie attended only 49.06% of the term, this is the percentage of financial aid she earned for the term.  Of the $1,950 in aid she received ($1650 Pell + $300 SEOG), she earned only $956.67 ($1,950 x 49.06%).  The remaining $993.33 ($1950 - 956.67) represents the unearned portion of aid that must be repaid.

Step 2: Amount of Unearned Charges

Since Katie attended classes for 52 days, SGC is entitled to keep $824.70 ($1,681 x 49.06%) of the fees charged to her for the term.  The remaining $856.30 ($1681 - 824.70) represents the unearned portion of fees that must be returned.  Also, there was a remaining balance of $245.34 on her DBA that will be returned as well, for a total of $1,101.64 ($856.30 + $245.34).

Step 3: Amount to be returned by the School

SGC is required to return the lesser of: the amount of unearned financial aid or the amount of unearned charges.

Katie's unearned financial aid: $993.33
Katie's unearned charges:  $1,101.64

Since unearned financial aid is less, SGC must return $993.33 to the Federal Pell Grant program.

Step 4: Amount to be returned by the Student

Student's are required to return any unearned portion of financial aid received.  Katie's unearned financial aid is $993.33.  Since SGC has returned the full amount of the unearned aid to the Federal Pell Grant program, Katie is not required to repay any funds.  Moreover, since the total unearned charges are $1,101.64, SGC owes Katie $108.31 since Katie paid a portion of her fees from her own resources. 

Example C

Sara enrolls in 10 hours for the Fall 2000 term, which begins on August 18th and ends on December 7th.  The school determines that there are 106 days in the term, excluding holidays.

Sara visits the Registrar's Office on October 23rd and completes a total withdrawal form, thereby officially notifying the school of her intent to withdraw.  Since she is withdrawing on the 23rd, she has attended only 66 of the 106 days in the term, or 62.26%. Regulations do not require that a refund be calculated for a student who has attended at least 60% of the term.  Since Sara has attended more than 60% of the term, no refund is calculated.