Treatment of Title IV Aid When a Student Withdraws
Federal law specifies how Southern Connecticut State University (SCSU) must determine the amount of Title IV program assistance a student has earned when they withdraw from the university. All federal aid programs are covered by this law, but please note that many state and private aid funds also require a pro-ration calculation when a student withdraws before the end of a term.
When a student withdraws before the end of a term, the amount of Title IV program assistance they have earned up to that point is determined by a specific formula. If less assistance disbursed to the student's account than the formula determined they earned, they may still be able to receive those additional funds. If the student received more assistance than they earned at the time of withdrawal, the excess funds must be returned by SCSU and/or the student.
The following is the order in which Title IV funds are returned:
- Direct Unsubsidized Loan
- Direct Subsidized Loan
- Direct Graduate PLUS
- Direct PLUS Loan
- Pell Grant
- Iraq and Afghanistan Service Grant
- Federal SEOG
- TEACH Grant
After the unearned funds have been returned for the above Title IV funds, the non-Title IV funds grants will be calculated, if applicable. These include:
- Roberta B. Willis Scholarship (Need based)
- Connecticut State University Grant (CSUG)
- Individual State Grants, such as Vermont Student Assistance, etc.
The amount of assistance a student has earned at the time of withdrawal is determined on a pro-ration basis. For example, if 30% of the term is completed, then 30% of the originally scheduled assistance for that term is considered earned. Once a student has completed more than 60% of the period, they've earned all the assistance that was scheduled for that entire period.
If a student did not receive all of the funds they earned for the period, they may be eligible for a post-withdrawal disbursement. If the post-withdrawal disbursement includes loan funds, SCSU must get a student's permission before it can disburse them. A student may choose to decline some or all of the loan funds to not incur additional debt. SCSU may automatically use all or a portion of your post-withdrawal disbursement of grant funds for tuition, fees, and room and board charges (as contracted with the school). SCSU needs your permission to use the post-withdrawal grant disbursement for all other school charges
There are some Title IV funds that a student was scheduled to receive that cannot be disbursed once the student withdraws because of other eligibility requirements. For example, if a first-time, first-year undergraduate student has not completed the first 30 days of their program at the time of withdrawal, they are not eligible for any Direct Loan funds.
Any amount of unearned grant funds that you must return is called an overpayment. The maximum amount of a grant overpayment that you must repay is half of the grant funds you received or were scheduled to receive. You do not have to repay a grant overpayment if the original amount of the overpayment is $50 or less. You must make arrangements with SCSU or the Department of Education to return the unearned grant funds.
SCSU is required to return the unearned funds within 45 days from the date Southern has determined the student has withdrawn. SCSU is also required to perform the withdrawal calculation for students who decide to stop attending classes and never officially withdraw from the university. Southern will determine the last date the student attended and perform the withdrawal calculation. If the student did not attend any of the classes, SCSU is required to return all of the funds.
The requirements for Title IV program funds when you withdraw are separate from any refund policy that SCSU may have. Therefore, you may still owe funds to SCSU to cover unpaid institutional charges. SCSU may also charge you for any Title IV program funds that the school was required to return.
If you plan on withdrawing from all of your courses for a semester, you should download the withdrawal form and submit it to the Registrar's Office. You will be responsible to pay any outstanding balance that you may owe to the Student Accounts Office.