Withdrawal and Return of Title IV Federal Financial Aid
If you completely withdraw or stop attending all classes at SUNY New Paltz before completing more than 60% of the term, a portion of the total federal aid you received may need to be returned to the US Department of Education immediately. This process is called Return of Title IV Funds.
Title IV aid programs at New Paltz:
Title IV of the Higher Education Act of 1965, as amended (Title IV and HEA program), establishes general rules that apply to the student financial assistance programs. For the purposes of Return of Title IV Funds, these programs include Federal Pell Grants, Federal Subsidized and Unsubsidized Direct Loans, Federal PLUS Loans, Federal Supplemental Educational Opportunity Grants (FSEOGs), and Federal Perkins Loans. Federal Work Study funds which have been earned will not be included.
Impact of withdrawing before completing at least 60% of the term:
If you begin but do not complete the semester at SUNY New Paltz and receive Title IV funds, the college has to return any Title IV funds that were not earned. If you attended more than 60% of the term, all Title IV aid is considered earned and no return of funds will be required. If you, the college, or parent (on your behalf) received less assistance than the amount that you earned, you may be able to receive those additional funds.
Calculation of Return of Title IV Funds:
The Student Accounts Office will determine if you will receive a full or partial refund of your tuition and fees, based on the Refund Policy as listed in the SUNY New Paltz online catalog and your official withdrawal date (which is the date your withdrawal form was completed and submitted).
The Student Accounts Office also calculates the amount of financial aid you have earned prior to withdrawing. Any aid received in excess of the earned amount must be returned to the respective programs. The amount of assistance that you have earned is figured on a prorated basis. This is determined by multiplying the percentage of term attended (calculated by dividing the number of days up to the withdrawal date by the number of calendar days in the semester including weekends and holidays, but not including breaks of 5 days or longer) by the Title IV aid received. All types of federal aid are used in this calculation. For example, if you completed 30% of your payment period or period of enrollment, you earn 30% of the assistance you were originally scheduled to receive. Once you have completed more than 60% of the term, you earn all of the assistance that you were scheduled to receive for that period.
If you received more assistance than you earned, the excess funds must be returned by New Paltz and/or you. If you did not receive all of the funds that you earned, because the funds had not paid to your account by the time you withdrew, you may be due a post-withdrawal disbursement. If the post-withdrawal disbursement includes loan funds, you may choose to decline the loan funds so that you do not incur additional debt.
After the amount of Title IV aid to be returned is calculated, a determination is made as to how much must be returned by SUNY New Paltz and by the student. Any funds returned by the institution are credited in the following order: Federal Unsubsidized Direct Loan, Federal Subsidized Direct Loan, Perkins, Federal PLUS Loan, Federal Pell Grant, FSEOG Grant, and other Title IV aid. If you have any loans which have been used in the calculation, this obligation will be due and payable by the terms of the promissory note. Any grant funds to be returned by you will be reduced by 50%. For example, if a calculation determines that your grant obligation is $300, the repayment will be $150.
In person at the time of withdrawal or about two weeks thereafter, Student Accounts will provide you with a statement and copy of the calculations and any money owed to the College and/or to the Federal Student Aid programs. Student Accounts will also notify you if you are eligible to receive a post-withdrawal disbursement. You must respond within 14 days from the date of the notification to accept the post-withdrawal disbursement, or it will be canceled.
The requirements for Federal Student Aid program funds when you withdraw are separate from any refund policy the College may have. Therefore, you may still owe funds to the school to cover unpaid institutional charges. SUNY New Paltz may also charge you for any Federal Student Aid program funds that were used to pay charges and that the school was required to return.