Financial Aid Office

The Impact of Withdrawing

When a student receiving Title IV student financial aid withdraws from all courses, the aid must be adjusted in accordance with rules established by the U.S. Department of Education. These calculations may result in the student owing a University balance.

Return of Title IV Funds/Institutional Refunds 

When you withdraw, University policies and federal requirements may result in charges and financial aid being reduced. If you withdraw on or before the 60% point of the enrollment period, the federal refund calculation must be performed within 45 days of the date USM becomes aware of your withdrawal. These refund calculations follow a specific percentage of adjustment based on the date of withdrawal and may require a return of financial aid to the financial aid accounts. Refund calculations take into account all federal financial aid received. The calculation is generally based upon the percentage of the enrollment period that you have completed.

The day you officially withdraw is determined to be the withdrawal date.  If you cease attendance without providing official notification of withdrawal to the institution, the mid-point of the payment period will be the withdrawal date for the purpose of returning Title IV funds.

Return of Funds 

Funds returned as a result of a refund or overpayment are returned to the Title IV accounts in an order prescribed by law and regulations. Please refer below for information for that order.

 

ORDER OF RETURN OF TITLE IV FUNDS PRESCRIBED BY HIGHER EDUCATION AS AMENDED IN THE HIGHER EDUCATION REHABILITATION ACT (HERA) OF 2005

TOTAL REFUND 

  1. Subsidized and Unsubsidized Federal Stafford Loans
  2. Federal Perkins Loans
  3. Federal PLUS (Graduate Student) Loans
  4. Federal PLUS (Parent) Loans
  5. Federal Pell Grant
  6. Academic Competitiveness Grant
  7. National SMART Grant
  8. Federal Supplemental Educational Opportunity Grants (SEOG)
  9. Other Title IV Aid Programs
  10. Other federal, state, private or institutional aid
  11. The Student

If you have any questions regarding the Refund Calculation for Withdrawals, please contact the Financial Aid Office for more information.