Return of Funds
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Return of Funds Policy
Due to Withdrawal from the University
If a student withdraws from UW-Platteville and has received federal financial aid then the school or the student or both may be required to return some or all of the federal funds awarded for that semester. Federal funds include the following programs: Federal Unsubsidized Stafford Loan, Federal Subsidized Stafford Loan, Federal Perkins Loan, Federal PLUS Loan, Federal Pell Grant, Federal Supplemental Grant, Academic Competitiveness Grant and SMART Grant. A Return of Title IV calculation will be done for every student who withdraws from the University even if it is after the 60% of the semester.
There are two types of withdrawals: official withdrawals and unofficial withdrawals.
- The official withdrawal dates is determined by the Registrar based on when a student drops all of their classes, or notifies a university official of their intent to withdraw
- Unofficial withdrawals are students who failed all of their classes per the grades reported at the end of each semester. The withdrawal date used for Title IV return purposes is the calendar midpoint of the semester.
Your aid eligibility will be recalculated if you withdraw, dropout or are dismissed prior to completing 60% of the semester. Recalculation is based on the percentage of earned aid using the following formula:
|Number of days completed up to the withdrawal date||= Percent earned|
|Total days in the semester (excluding scheduled breaks of 5 or more days)|
Aid is returned to funding source based on the percent of unearned using the following formula:
- 100% of aid - Percent earned = Percent of unearned aid
- The percentage of unearned aid X Institutional costs = Amount of aid paid to institution that must be returned to the funding source
- When the aid is returned to the funding source you could have tuition, housing, or meal plan balance with the University
The balance of the unearned aid is used to determine if any funds need to be returned for non-institutional costs.
- Unearned aid - Return of institutional costs = Balance of unearned aid for non-institutional cost
The "Return to Title IV" calculation has several steps. Below is the pertinent information involved in the calculation.
- The school determines the amount of Title IV financial aid that has been disbursed to your account versus the amount of Title IV financial aid that could have been disbursed to your account. In most cases the full amount of aid will have disbursed. In the instance that your aid has not been disbursed you may be eligible for a post-withdrawal disbursement.
- The school multiples the percentage of aid earned by the total amount of disbursed aid and aid that could have disbursed. This is the amount of aid the student has earned.
- The school takes the amount of aid the student has earned and subtracts it from the total aid disbursed for the student. This is the amount of aid the student has not earned.
- The school determines the amount of institutional charges that that have been applied to the students account. This amount is multiplied by the percentage of aid earned. This is the amount of earned institutional charges.
- The school reviews the amount of unearned aid versus the amount of unearned institutional charges. The lesser of the numbers is the amount of aid that is returned.
The school has 45 days from the date the school determined the student withdrew (officially and unofficially) to return this amount. The least desirable aid is returned first, in ascending order of desirabiltity as follows:
All money the institution has to return will be returned in the following order:
- Unsubsidized Stafford Loan
- Subsidized Stafford Loan
- Federal Perkins Loan
- Federal Plus Loan
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant
- Talent Incentive Grant
- Wisconsin Higher Education Grant(Money will be returned to this program only if the institution has remaining funds available after satisfying federal prgrams).
If a student did not receive all of the funds earned, the student may be eligible for a post-withdrawal disbursement. If the post-withdrawal disbursement includes loan funds, the school is required to get the student's permission before these can be disbursed. The student may decide to decline some or all of the loan funds so additional debt is not incurred. The school may use all of a portion of the post-withdrawal disbursement of grant funds for tuition, fees, and room and meal plan charges. The school is required to get the student's permission for any post-withdrawal grant disbursement for all other school charges. If the student does not give permission, the student will be offered the grant funds. Please note there are some Title IV funds that may be scheduled to be received and cannot be disbursed to the student after withdrawal because of other eligibility requirements.
- You may need to return aid for non-institutional costs
- Any amounts attributed to your loans will be repaid in accordance with the terms of your promissory note.
- Amounts to be returned to your grants are reduced by 50%
- If you need to repay money for non-institutional costs, you will be contacted by the Financial Aid Office.
- If we do not hear from you in 45 days we are obligated to send your outstanding balance to the federal government for collection.
- You will not be allowed to receive additional federal aid until you have paid the overpayment in full.