Home > Admissions > Financial Aid > Eligibility > Withdrawals, Repayments, Refunds

Withdrawals, Repayments, Refunds

The Federal Higher Education Act (HEA) of 1965, as amended in 1998, established regulations governing the treatment of Title IV student financial aid when a student withdraws from school. Federal financial aid is considered earned only by attending classes.

If a student does not complete at least 60% of the semester or term, the unearned portion of their aid must be returned to the federal programs.

Withdrawal and Return of Title IV (R2T4) Funds

When a student withdraws before completing 60% of the semester, the Office of Financial Aid must recalculate eligibility using the federal Return of Title IV funds formula:

Percentage of semester completed = (Number of days attended ÷ Total days in the semester/term)

  • Withdrawal Date: Determined by the date the student begins the withdrawal process or officially notifies the University of their intent to withdraw.
  • If more than 60% of the semester is completed: The student has earned 100% of the Title IV aid received.

Example:

  • Semester dates: August 16 – December 10 (119 days total)
  • Student withdraws on September 28 after attending 44 days
  • Calculation: 44 ÷ 119 = 37% completed

Since only 37% of the semester was completed, a Return of Title IV calculation must be performed.

Impact on Aid and Student Accounts

  • If earned aid is less than disbursed aid:
    • The University must return a portion of the funds.
    • The student may also be required to return funds.
    • This may result in a balance owed to the University.
  • If earned aid is greater than disbursed aid:
    • The University must process a post-withdrawal disbursement.
    • These funds must be paid within 120 days of the withdrawal date.

Order of Return of Title IV Funds

Federal funds must be returned in the following order:

  1. Unsubsidized Stafford Loan
  2. Subsidized Stafford Loan
  3. Graduate PLUS Loan/ Parent PLUS Loan
  4. Federal Pell Grant
  5. Iraq and Afghanistan Service Grant
  6. Federal Supplemental Educational Opportunity Grant (FSEOG)
  7. Other Title IV aid

Unofficial Withdrawals

If a student leaves the Delaware State University without officially withdrawing:

  • The midpoint of the semester or the last documented date of attendance in an academically related activity will be used as the withdrawal date.
  • If a student receives all F’s and no last date of attendance can be verified, the student is considered an unofficial withdrawal.
  • In this case, financial aid will be recalculated at 50% of the semester completed.