Student refunds and return of financial aid funds
The following procedures will occur if you voluntarily withdraw from Rose-Hulman.
Return of Title IV Funds
The federal government mandates that students who withdraw from all classes may only keep the financial aid they have "earned" up to the time of withdrawal. Title IV funds disbursed in excess of the earned amount must be returned by the college and/or the student to the federal government. In this situation, a student could owe the college, the government, or both.
The Office of Financial Aid is notified by the Registrar when a student has officially withdrawn from the college. The calculation for return of Title IV funds is based upon the date on which a student initiates the withdrawal process by indicating intent to withdraw either by speaking with an academic advisor, member of the Registrar's staff, member of the Student Affairs staff and/or completing the college withdrawal form. Students who withdraw prior to the 100% Drop/Add date may be asked to document participation in their courses. Failure to document attendance or participation will result in cancellation of all aid for that term.
If for any reason a student does not officially withdraw from a course(s), but ceases to attend the course(s), the Office of Financial Aid will be notified of the last date of participation by the instructor(s) when grades are reported at the end of the term. This date will determine any need to reduce the financial aid initially offered, as well as complete the Return of Title IV aid calculation described below.
To determine the amount of aid the student has earned up to the time of withdrawal, we divide the number of calendar days the student has attended classes by the total number of calendar days in the term (minus any scheduled breaks of 5 days or more). The resulting percentage is then multiplied by the total federal funds that were disbursed (either to the student directly by check or direct deposit) for the terms.
We will notify and provide instruction to students who are required to return funds to the government. If funding is to be returned to the government, the student and/or college has 45 days to return the funding to the government.
In some instances, students who withdraw may be eligible for a post-withdrawal disbursement of "earned" aid. The following condictions must be met for the student to be considered eligible for such a disbursement:
* The student must have submitted a valid FAFSA data to Rose-Hulman Institute of Technology prior to the date of withdrawal.
* Rose-Hulman must have made an offer of federal aid to the student. In the case of the Direct Student Loan, the college must have originated the loan with the U.S. Department of Education, must have documenation that the student signed a promissory note of the loan, and must be making the first disburement of the loan.
Students whose circumstances require that they withdraw from all classes are strongly encouraged to contact our office and their academic advisor before doing so. At that time, the consequences of withdrawing from all classes can be explained and clearly illustrated. Financial Aid can provide refund examples and further explain this policy to students and parents.
Allocating returned Title IV (federal) Financial Aid
Funds returned to the federal government reimburse the individual federal programs from which the student received aid. Financial aid returned (by the college and/or student or parent) must be allocated, in the following order, up to the net amount disbursed from each source:
1. Federal Unsubsidized Direct Loan
2. Federal Subsidized Direct Loan
3. Federal Perkins Loan
4. Federal Direct PLUS (Parent) Loan or Grad PLUS loan
5. Federal Pell Grant
6. Federal Supplemental Educational Opportunity Grant (FSEOG)
7. Other Federal Loans or Grant Assistance
Return of Institutional and Other Financial Aid
All other forms of financial aid will be returned in a manner consistent with Federal Title IV regulations. The amount returned will be based on the percentage of enrollment completed and will be calculated by dividing the number of calendar days completed by the number of calendar days in the quarter. If this percentage is greater than 60%, no financial aid will be returned and you will retain 100% of this aid to offset expenses. If the percentage is less than 60%, the unearned portion (100% minus the calculated percentage) will be returned to each appropriate source of funding. The amount will show up as a charge on your account.
Change to Part-Time Status During a Term
If you withdraw from a course but continue as a part-time student (fewer than 12 quarter hours), the tuition refund shall be the difference between the initial billing and the revised billing multiplied by the unearned portion of the quarter. Dividing the number of calendar days completed by the number of calendar days in the quarter and subtracting this number from 100% will calculate this percentage. If the calculated percentage is greater than 60%, you will not be entitled to a reduction in tuition. If you who drop below half-time during this refund period, you will have all financial aid removed with the exception of the Federal Pell Grant. If you continue to be enrolled for at least six credit hours and are eligible, you may retain a portion of the Federal Supplemental Educational Opportunity Grant, Federal Direct Stafford Loan, Federal Direct Parent Loan for Undergraduate Students, State funds and RHIT institutional funds.