Financial Implications of Leaving School

Related Pages

Submit a Withdrawal and Leave of Absence Notification Request Form
Is Leaving School Right For You?
Challenges, Support and Resources

Leaving school on a temporary or permanent basis may change the amount you are responsible to pay for your time in class and the amount of financial assistance you receive. 

Continue reading to learn more about the financial ramifications that can occur should you Withdraw or Take a Leave of Absence.

Tuition and Fees

Students that cease attendance or otherwise satisfy the requirements for withdrawal or leave of absence should that student account charges may be adjusted as a result of temporarily or permanently leaving school as a result of satisfying the requirements for Withdrawal or Leave of Absence.  The rate for these adjustments, where applicable, are outlined in the Refund Rate for Withdrawals.

Refund Rate for Withdrawals

  • The the Refund Rate for Withdrawals outlines the weekly incremental increase in a students liability for tuition and fees upon ceasing attendance or otherwise satisfying the requirements for withdrawal or leave of absence.  
  • The rate that applies to a student who ceases attendance or otherwise satisfies the requirements for Withdrawal or Leave of Absence is determined from the Withdrawal Effective Date, as described below, that applies. 

 

If you have decided that stepping away from your studies on a temporary or permanent basis is the right choice for you, we strongly encourage you to submit a Withdrawal or Leave of Absence Notification Request Form at your earliest capability as delays may increase the rate used to determine the amount a student will be charged for the applicable period. 

The tuition and fee costs, or refund rate, assessed to a student who has ceased attendance or otherwise satisfied the requirements for withdrawal or leave of absence is based on the students Withdrawal Effective Date:

Please contact your school directly with additional questions.

If a student has an Unpaid Balance as a result of ceasing attendance or otherwise satisfying the requirements for withdrawal or leave of absence, their balance will be handled in accordance with the Student Financial Responsibility Statement acknowledged upon initial course registration.  Unpaid Bills may result in Late Fees and Holds that pose challenges to a students ability to return to school and more.

Federal Student Aid

Title IV Federal Student Aid is awarded under the assumption that a student will attend the institution for the entire period for which that assistance was awarded.

If you cease attendance or otherwise satisfy the requirements for Withdrawal or Leave of Absence from school, you may no longer be eligible for the full amount of Title IV Federal Student Aid you were awarded, have received or were otherwise scheduled to receive. Therefore, interrupting or ceasing your studies may not only affect you academically but financially as well. 

If you are a recipient of one of the Title IV Federal Student Aid programs, we strongly encourage you to to read the information below before temporarily or permanently leaving school.

Please contact your schools Financial Aid Office for additional information.

Title IV Federal Student Aid refers to the financial aid programs for postsecondary students authorized under Title IV of the Higher Education Act of 1965, as amended (Title IV, HEA).  Title IV Federal Student Aid is administered by the U.S. Department of Education as outlined in 34 CFR 668.1(c).  Federal Student Aid, a part of the U.S. Department of Education, is responsible for managing the student financial assistance programs authorized under Title IV of the Higher Education Act of 1965.

A list of all active Title IV Federal Student Aid Programs is provided below:

When a Title IV Federal Student Aid Recipient ceases attendance or otherwise satisfies the requirements for withdrawal or leave of absence, their school must determine what percentage of their Title IV Federal Student Aid has to be returned to the Federal Government through a process called R2T4 (return calculation). Federal regulations state that a Federal Student Aid recipient begins earning funds on their first day of attendance for the given period of enrollment. The earned aid is therefore calculated by dividing the number of days attended, as determined by a students Withdrawal Effective Date, which is also used to apply the Refund Rate for Withdrawals, by the total number of days in the given term to determine the percent of aid earned.

The Percent of Title IV Aid Earned  =  Number of Days Attended / Number of Days in Term         

Based on the results of this calculation, the Financial Aid Office is required to notify the student of his or her eligibility, if any, for a post-withdrawal disbursement within 30 days of the date the student withdraws from the University. The amount of assistance that a student has earned and is therefore, eligible to keep, is determined on a pro rata basis. For example, if the student completed 30% of the payment period or period of enrollment, the student has earned 30% of the federal financial aid that he or she received or was scheduled to receive. This also means that the student did not earn 70% of the scheduled federal financial aid and this amount must be returned to the federal financial aid program. Once a student has completed more than 60% of the payment period or period of enrollment, he or she has earned all the federal financial aid received or scheduled to be received for that period.

If the withdrawn student did not receive all of the funds that he or she earned, they may be eligible for a Post-withdrawal disbursement. If Post-withdrawal disbursement includes loan funds, the student’s School Financial Aid Office must get their permission before it can disburse them. Students may choose to decline some or all of the loan funds so that they do not incur additional debt.

For undergraduate students, all or a portion of the Post-Withdrawal disbursement of grant funds may be automatically used for any existing outstanding charges, including tuition, fees and housing charges.  The Financial Aid Office will need the student’s permission to use the Post-Withdrawal grant disbursement for all other school charges. If the student does not give permission (some schools ask for this when students enroll), they will be offered the funds. However, it may be in the student’s best interest to allow the school to keep the funds to reduce their debt at the school.

There are some Title IV funds that may have been scheduled for release but can no longer be disbursed on the student’s account because their Withdrawal or Leave of Absence and other eligibility requirements have not been met.

If the withdrawn student received more Title IV program funds than they earned, the Schools Financial Aid Office must return this unearned excess amount to the appropriate aid program. 

As required under regulation 34 CFR 668.22 and determined by the Return Calculation, unearned aid is returned in the following order as applicable:


Any unearned portion of Financial Aid that was disbursed to the student must be repaid to the university. If the return of the unearned federal funds results in a debit to the student’s account, they will be responsible for the outstanding balance owed to the University.  Additional information regarding how student account charges are determined for a student that ceases attendance of otherwise satisfies the requirements for Withdrawal or Leave of Absence may be found below.

In the event that the Withdrawn Student is eligible for a refund of earned aid, the student should ensure that their Direct Deposit information is updated.  For students who do not have direct deposit, it is extremely important to keep their Mailing Address Up to Date so that the refund can be mailed.  Students should also check their SSOL Account periodically for any updates, alerts, emails etc. that may contain important information that could have an impact on registration should the student decide to return to the university.

The university is required by law to refund earned Credit Balances within 14 days from the date the earned aid was determined.

For more information about our refund process, please visit the SFS refunds page.

This law requires that institutions determine the amount of federal financial aid (Title IV programs) that a student earned at the time of his or her withdrawal. The Title IV programs that are covered by this law include: Federal Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOGs), Federal Direct Stafford Loans, and Federal Direct PLUS Loans.

When a student withdraws during the payment period or period of enrollment, the amount of Title IV program assistance that the student earned to that point (Withdrawal Effective Date) is determined by a specific federal formula. If the student received less assistance than the amount that was earned, the student may be able to receive those additional funds as a Post-Withdrawal disbursement. If the student received more assistance than the amount that was earned, the excess funds must be returned by the school and/or the student.

If you are a Student Borrower of one or more loans that are part of The William D. Ford Federal Direct Loan (Direct Loan) Program, which includes Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans and Direct Consolidation Loans, you must complete Required Federal Student Loan Exit Counseling for Undergraduate or Graduate Students, as applicable.

Other Financial Assistance

Borrowers of Private Student Loans should contact their loan holder directly for questions regarding the impact of ceasing attendance or otherwise satisfying requirements for withdrawal or leave of absence from school. 

If you are a student that is also a benefit-eligible employee, we strongly encourage you to review the Human Resources Benefits Page and corresponding materials for information related to ongoing eligibility before ceasing attendance or otherwise satisfying requirements for withdrawal or leave of absence from school.  Additionally, the Human Resources Employee Tuition Programs page and Student Financial Services Employee Tuition Exemption page offer information unique to the utilization of employee tuition benefits.

For additional information or questions related to a specific benefit, please contact the administering entity of your benefit directly unless directed otherwise.  You may contact Human Resources for assistance with determining the appropriate contact for your benefit-related questions.

Borrowers of Other Loan Types should contact their school's Financial Aid Office directly for additional information regarding the impact of ceasing attendance or otherwise satisfying requirements for withdrawal or leave of absence from school.

Recipients of University or School-Based Aid or Other Institutionally Funded Aid Types should contact the Awarding Office for information concerning the impact that ceasing attendance or otherwise satisfying requirements for withdrawal or leave of absence from school may have on their award.

Sponsored Students should take any required action outlined in the terms of the sponsorship contract and may contact their sponsor directly with questions regarding the impact of ceasing attendance or otherwise satisfying requirements for withdrawal or leave of absence from school.  Any changes to a student's sponsorship should be reported via email to the Student Financial Services Sponsored Students Inbox.

Students receiving assistance from an entity outside the university, such as Scholarships or Other Outside Awards, should contact the awarding entity for information related to temporarily or permanently leaving school.

Return to school Costs

Leaving school can have financial ramifications that fall outside the parameters of student financial aid and account charges.  Your school has requirements that are determined based on the type of request you pursue and whether it is subsequently approved.  

Re-entry requirements are generally unique to a students school and determined in conjunction with whether a students Withdrawal or Leave of Absence request is approved.  In addition to being approved for a Leave of Absence, you may be required to satisfy additional requirements to be approved for the type of leave being requested.

  • If a Leave of Absence request is not approved, you may be required to reapply to school when you return, which may result in additional deposit requirements.
  • If the type of Leave of Absence you requested is not approved, additional requirements and implications may apply, such as (but not limited to)
    • Future housing options and access
    • Readmission and corresponding deposit requirements
    • Access to extended health care coverage, where applicable
    • And more

Please review the school and University policies that apply to your circumstances before submitting a Withdrawal and Leave of Absence Notification Request Form. Students should contact their school for additional assistance.

Submit Your Withdrawal or Leave of Absence Notification Request

The information presented throughout this page is informative in nature and includes resources that may be helpful in deciding whether taking a temporary or permanent step away from school is the course of action that best meets your needs. It serves as an overview and supplement to applicable policy and/or other requirements that apply to a students Withdrawal or Leave of Absence.

For questions or concerns related to your specific circumstances, please refer to the policy and/or other requirements that apply; contact your school for additional information.