If you withdraw from all or some of your classes, you may be required to return or repay financial aid you've received for that semester. What you are required to repay depends on many factors such as the type of aid you've received and what enrollment changes you made. Please contact your academic advisor and One Stop to discuss the impacts of withdrawing before you make any final decisions.
If your enrollment changes and you're required to repay all or a portion of funds, you'll receive a letter to your permanent address with the details.
For questions, contact the Office of Financial Aid.
Repayment information by aid type
The federal formula requires a return of Title IV aid if you received federal assistance in the form of a Pell Grant, Supplemental Educational Opportunity Grant (SEOG), Federal Direct Subsidized/Unsubsidized Loan or Federal Direct PLUS Loan and withdrew on or before completing 60% of the semester.
The federal government mandates that if you withdraw from all classes, you may only keep the financial aid you have "earned" up to the time of withdrawal. The Title IV funds that were disbursed in excess of the earned amount must be returned to the federal government by the University and/or you. If you received a credit balance check for financial aid that was credited earlier in the semester (which was to be used for personal expenses or non-University housing expenses), you may be required to return a portion of those funds to the University. This portion represents funds that were intended to pay your education-related expenses through the end of the semester. The amount to be returned to the University will be calculated from the date on which you officially withdraw (officially, unofficially, or express intent to withdraw).
Determine earned aid to repay
To determine the amount of aid you earned up to the time of withdrawal, the Office of Student Finance will divide the number of calendar days you attended classes by the total number of calendar days in the semester (less any scheduled break of 5 days or more). The resulting percentage is then multiplied by the total federal funds that were disbursed to your University student account for the semester. This calculation determines the amount of aid that you are allowed to keep.
The unearned amount of aid must be returned to the federal government within 45 days from the date the school determined the student withdrew or ceased attendance.
You may have an obligation to pay back funds that were paid directly to you. If the University returns funds that were applied to your account, a balance due the University will result. Federal student aid may not cover all unpaid institutional charges due the University upon withdrawal. Failure to repay will prevent future registration at the University and initiate delinquent collection procedures, which will adversely affect your credit rating. If a credit balance is due to you, funds will be disbursed as soon as possible and no later than 14 days after the calculation has been completed. You'll receive letter to your permanent address if your financial aid is reduced and a return is required.
Disbursement of Title IV funds
You may be owed a disbursement of Title IV funds after the withdrawal date if the conditions for Post Withdrawal Disbursements are met according to the code of federal regulations 34 CFR 668- 22(1)(2) and (3) and 34 CFR 690.61(a). A post withdrawal disbursement, whether credited to your account or disbursed to you or your parent directly, will be made from available grant funds before available loan funds. In cases where a post-withdrawal disbursement is due, the University will notify you of the amount and ask for consent to disburse these funds. You have 14 days to respond to the notification and if no response is received within the allotted period, the loan will be cancelled.
How returned Title IV aid is used
Funds that are returned to the federal government are used to reduce the outstanding balances in individual federal programs. Financial aid returned by you and/or your parent or the University must be allocated in the following order:
- Federal Unsubsidized Direct Loan
- Federal Subsidized Direct Loan
- Federal Direct PLUS Loan
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- Federal TEACH Grant
- Other federal loan or grant assistance
If you cancel a portion of your enrollment or completely withdraw from classes during the semester, you may be required to return all or a portion of the state of Minnesota financial aid to the state financial aid program from which the aid was received.
This may include but is not limited to:
- Minnesota State Grant
- Student Educational Loan Fund
- Minnesota State Child Care Grant
- Minnesota Public Service Safety Officer Program
If you withdraw from all of your courses or drop credits while maintaining enrollment, state funds are subject to a worksheet calculation based on tuition and/or fee changes, in addition to other contingencies. You'll receive a letter to your permanent address if your financial aid is reduced and a return is required.
If you completely withdraw on or before completing 60% of the semester, you may be required to return all or a portion of your University financial aid to the financial aid program from which the aid was received.
This may include but is not limited to:
- U Promise Scholarship
- University loans
- University scholarships
To determine the amount of institutional aid earned up to the time of withdrawal, the number of calendar days you attended classes will be divided by the total number of calendar days in the semester (less any scheduled break of five days or more). The resulting percentage is then multiplied by the total University funds that you accepted. This calculation determines the amount of aid that you earned and are allowed to keep. The unearned amount of aid must be returned to the institutional program(s) by the University. You'll receive a letter to your permanent address if your financial aid is reduced and a return is required.
If you receive an approved Tuition Refund Appeal, your University financial aid may be reversed accordingly.