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If a student completely withdraws from Oglethorpe University during
the first 60% of the payment period and has received federal student
financial assistance, the school must calculate the amount of
federal funds the student "did not earn." This process is required
to determine if the school and/or the student must return funds to
the federal programs.
The percentage "not earned" is the complement of the percentage of
federal funds "earned." If a student withdraws completely before
completing 60 percent of the payment period, the percentage "earned"
is equal to the percentage of the payment period that was completed.
If the student withdraws after completing 60 percent of the payment
period, the percentage earned is 100 percent. If the student has
received more federal assistance than the calculated amount
"earned," the school, or the student, or both, must return the
unearned funds to the appropriate federal programs.
The school must return the lesser of: the amount of federal funds
that the student does not earn; or the amount of institutional costs
that the student incurred for the payment period multiplied by the
percentage of funds "not earned." The student must return (or repay,
as appropriate) the remaining unearned federal funds. An exception
is that students are not required to return 50 percent of the grant
assistance received that is their responsibility to repay.
It should be noted that the Institutional Refund Policy and the
federal Return of Title IV Funds Policy are separate and distinct.
Students who completely withdraw after the Oglethorpe’s refund
period has passed and before the 60% point of the payment period may
owe a balance to the University previously covered by federal aid.
Students receiving federal assistance are advised to consult the
Office of Financial Aid before initiating the withdrawal process to
see how these new regulations will affect their eligibility.
Regulations require the return of funds in the following order:
- Unsubsidized Federal Stafford loans
- Subsidized Federal Stafford loans
- Federal Perkins loans
- Federal PLUS loans
- Federal Pell Grants
- Federal Supplemental Educational Opportunity Grants (FSEOG);
and
- Other federal aid programs.
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