Return of Title IV (Federal) Funds
When a federal student aid recipient withdraws, officially or unofficially, even after attending the first day of class, the University will return any funds the student was not eligible to receive, and the student aid recipient will be required to repay, a prorated portion of funds received based upon a federally required calculation. Adjustments to financial aid will be made based on the percentage of the period of enrollment as of the resignation date. The earned percentage is applied to the total amount of Title IV grants and loan assistance that was disbursed (and that could have been disbursed) to the student, or on the student's behalf. This process can take up to 45 days.
Return of Title IV (Federal) Funds when a student withdraws
Students who choose to withdraw from the University prior to the end of an enrollment period (semester) should follow the University's guidelines for withdrawing from school. An Official Withdrawal Form must be completed and submitted to the proper office before a student can be considered officially withdrawn. Information concerning the details of withdrawal procedures can be found in the University Catalog or by contacting the University Registrar's Office.
Under the Higher Education Amendments of 1998, the amount of aid a student has earned for the enrollment period, is based on the length of time the student remains enrolled for that period. Therefore, the percentage of the enrollment period completed is also the percentage of aid the student has earned.
The Unearned Amount of Title IV aid must be returned to the applicable Title IV aid programs in the following order:
Unsubsidized Stafford Loan
Subsidized Stafford Loan
Plus Loan(Graduate Student)
National SMART Grant
Other Title IV aid
Return of Title IV (Federal) Funds when a student does not withdraw
If University records show a federal student aid recipient never attended a class and/or never performed an academically related activity for a semester or term, then the recipient never established eligibility for any aid funds that may have been disbursed for that semester or term. In addition, any student aid recipient who drops all classes or voids his/her schedule with an effective date prior to the first day of class for a semester or term did not establish eligibility for any aid funds that may have been disbursed for that semester or term. In either case, the student aid recipient must repay the entire amount of aid disbursed for that semester or term. Federal student aid recipients who begin attending classes during a semester and who cease attending or performing academic activities prior to the end of the semester, and never complete an Official Withdrawal Form are considered by the federal government to have Unofficially Withdrawn. If University records indicate that a student did begin attending classes but subsequently unofficially withdrew, the University will consider the Unofficial Withdrawal date to be the midpoint of the semester (unless documentation exists of an earlier or later date of attendance/academic activity by the student). If no attendance or academic activity can be documented, the Unofficial Withdrawal student must repay the entire amount of aid disbursed for that semester or term.
Resignation and Withdrawal Counseling Tips:
1. Understand that if you resign before completing 60% of the semester/summer term the Financial Aid Office will perform a calculation to determine the amount of federal aid that you did not earn.
2. Understand that you may be responsible for reimbursing the University for any funds that are returned by NSU on your behalf. You will receive a bill in the mail notifying you of any payment due to the University.
3. Understand that if you resign within the University's Refund of Charges Policy, you may receive a reduction of your tuition and fees. However, this policy does not exempt you from reimbursing the University of any unearned funds returned to the financial aid programs. After your fees are reduced, you will receive a bill in the mail notifying you of any payment due to the University.
4. Understand that until your debt is paid, you cannot register for classes in future semesters and/or have your academic transcript released to another university or college.
5. Understand when you stop attending classes without officially resigning that you are subject to the financial aid resignation policy and you are responsible for reimbursing any unearned funds returned by NSU. The Financial Aid Office will contact your instructors to confirm your last date of attendance.
6. Understand that you must complete an Exit Interview form, which outlines your rights and responsibilities in repaying your student loan. You must complete this form if you did receive financial aid for the current semester/summer term or if you had received financial aid during a previous year.
7. Understand that the University will report your resignation (official or unofficial) to NSLDS. You will need to contact your lender/guaranty agency for further information regarding the payment terms of the promissory note, and payment of additional unearned amounts due to the lender.
8. Understand that your resignation (official or unofficial) may disqualify you for federal aid due to Satisfactory Academic Progress, and you must either appeal or attend at your own expense to re-qualify for the next academic year.
9. Understand that appealing to the Registration, Credits, & Graduate Council to request a partial refund or cancellation of your resignation may adversely affect your reimbursement to NSU. Such an appeal may require you to repay all the financial aid that you received this semester/summer term.