Federal law specifies how Gardner-Webb University must determine the amount of federal (Title IV) financial aid that you earn if you withdraw from school. The federal programs included under this law are Direct Loans, Direct PLUS Loans, Federal Pell Grants, and Federal Supplemental Educational Opportunity Grants. When you withdraw during your payment period, the amount of federal financial aid that you have earned up to that point is determined by a specific formula. If you received more assistance than you earned, the excess funds must be returned to the government by Gardner-Webb University and/or you. This is called a Return to Title IV (or R2T4). The amount of assistance that you have earned is determined on a pro rata basis. For example, if you completed 30% of your payment period, you earn 30% of the assistance you were originally scheduled to receive. Though your aid is posted to your account just after the start of each semester, you earn the funds as you complete the semester. Title IV financial aid is earned by the calendar day, not class day. This includes weekends, holidays, and breaks of less than five consecutive days. Once you have completed more than 60% of the payment period, you earn all the assistance that you were scheduled to receive for that period. Once your withdrawal has been processed by the Registrar’s office and has notified the Office of Financial Planning, a calculation will be completed, if applicable, according to these guidelines. Returned Title IV funds are allocated in the following order:
Mandatory returns may create a significant indebtedness for you if this aid was used to pay for charges for which you are still responsible or if you received these funds as a refund prior to an official withdrawal. These funds must be returned even if GWU provides no refund to the student.
Any amount of unearned grant funds that the student must return is called an overpayment. The maximum amount of a grant overpayment the student must repay is half the grant funds that were received or scheduled to receive. The student does not have to repay a grant overpayment if the original amount of the overpayment is $50 or less. Arrangements must be made with GWU or the Department of Education to return the unearned grant funds. The student will be notified of any grant overpayment within 30 days of the date the school determined the student withdrew.
If you received (or Gardner-Webb University or your parent received on your behalf) less assistance than the amount that you earned, you may be able to receive those additional funds as a Post-Withdrawal Disbursement. If the post-withdrawal disbursement includes loan funds, the student must give permission before the funds can be disbursed. GWU may automatically use all or a portion of the post-withdrawal disbursement of grant funds for tuition, fees, and room and board charges. Permission is required to use the post-withdrawal grant disbursement for all other school charges. Students will be notified of post-withdrawal disbursement eligibility within 30 days of the date of withdrawal determination. The school must return the Title IV funds within 45 days of the date the school determines the student withdrew.
Financial aid is expected to help meet educational costs, so any academic, housing, or meal plan refunds resulting from your withdrawal from the university will be returned to the financial aid programs from which you received assistance. University, state, and outside scholarships may be adjusted based on the tuition refund schedule. You may be required to return funds from previously issued financial aid refund checks.
Indebtedness to the university created by the return of aid must be resolved before you can reenroll or be issued an academic transcript. Federal regulations prohibit the use of federal financial aid to pay prior-year balances. Therefore, you need to consider the payment of any outstanding balances as you make plans to return to school.
An unofficial withdrawal occurs when a student does not successfully complete any of their courses (receives all F grades or @F grades), stops attending classes, and does not complete any coursework as of the 60% point of the semester or summer term without formally withdrawing from the university, as required. An unofficial withdrawal may be required to repay up to 50% of the financial aid received for the term. Forms of federal financial aid are subject to calculations based on the Return to Title IV Aid. Students who never attended any of their classes and did not complete any course work are required to repay 100% of the financial aid received for the semester or summer term. Students who stop attending all of their classes are required to officially withdraw from the university.
