In accordance with federal regulations, the Office of Financial Aid and Scholarships recalculates federal aid eligibility for students who withdraw, drop out, are suspended, or take a leave of absence prior to completing more than 60 percent of a semester.
“Withdrawal date” is defined as the actual date the student initiated the withdrawal process, the student’s last date of recorded attendance, or the midpoint of the semester if a student leaves without notifying the university. Recalculation is based on the percent of earned aid using the following formula:
Number of days completed up to the withdrawal date / Total days in the semester
Financial aid returned to federal programs is then equal to 100 percent minus the percentage earned multiplied by the amount of federal aid disbursed.
Example: Jack takes a leave of absence on the 18th day of the semester. The semester has 100 days. 18 days completed divided by 100 days in the semester = 18%. Since the percentage of days completed is less than 60 percent, per federal regulations the student is allowed to retain 18% of the federal aid that has disbursed, and RIT must return 72% of the federal aid that has disbursed. This may cause Jack to owe a balance to RIT.
Funds are returned to the federal government in the following sequence:
Federal Direct Unsubsidized Loans
Federal Direct Subsidized Loans
Federal Graduate PLUS Loans
Federal Parent PLUS Loans
Federal Pell Grants
Federal Supplemental Educational Grants (SEOG)
Other federal grants
If the student is otherwise eligible, the first disbursement of Federal Direct Subsidized Loan or Federal Direct Unsubsidized Loan proceeds is allowed up to 180 days after the student has ceased to be enrolled. Subsequent disbursements are not allowed.
Regulations vary. Any adjustments are done in accordance with the specific requirements of the sponsoring state.
Privately Funded Grants and Scholarships
In the absence of specific instructions from the sponsor, 100 percent of the semesterly award will be credited to the student’s account.
RIT Grants and Scholarships
Institutional funding such as RIT grants and scholarships are prorated based on the tuition refund schedule for withdrawal during a semester.
Example: A student withdrew from RIT before the end of a semester. Based on the student’s last date of attendance, 50% of the student’s tuition was refunded.
The student had been awarded $4,000 in RIT Grant funding and $8,000 in RIT Presidential Scholarship funding for the semester. Since the student qualified for a 50% tuition refund, 50% of his RIT Grant ($2,000) and 50% of his RIT Presidential Scholarship ($4,000) will be returned to RIT.
Students taking a Leave of Absence or withdrawing from the Institute should be prepared for the impact that these courses of action may have on their educational loans.
Leave of Absence - six months (180 days) or less:
Your federal loans will enter into grace. Federal Direct student loans have a six month grace period, and Federal Perkins Loans have a nine month grace period.
During a grace period, you are not required to make payment on your federal student loans.
If you return to school (at least half-time) within the grace period, your federal student loans re-enter into an “in school” status. You are not required to make payments with this “in school” status.
You will want to contact the lender(s) of any private student loans you may have to determine whether you are required to make any payments when you are not enrolled in classes or co-ops. Many private lenders offer six month grace periods.
Leave of Absence - Greater than six months (180 days) or a Withdrawal
Federal Direct student loans will enter into repayment. If you are unable to make payment, you will need to contact your student loan servicer to determine if you qualify for a deferment (unemployment deferment, economic hardship deferment, etc.) or forbearance to postpone payments. If you do not qualify for a deferment or forbearance, then you may be eligible to have your monthly payment amount reduced based on different repayment plans. If you do not know who your federal student loan servicer is, you will find their contact information through the National Student Loan Data System.
Federal Perkins Loans will enter into repayment after the nine month grace period has been exhausted. If you are unable to make payment, please contact the servicer ECSI to determine if you qualify for a deferment or forbearance based on your current financial situation.
Private or Alternative Student Loans - Contact your loan holder to make payment arrangements.
You only qualify for one grace period per federal student loan. Once the grace period for a federal student loan has been exhausted, you must make payments unless you have been approved for a deferment or forbearance. Additional information about federal student loans can also be found at www.studentaid.ed.gov/.