The Financial Aid Office is required by federal regulations to recalculate Title IV (federal) financial aid eligibility for a student who withdraws from all classes, drop outs (categorized as an unofficial withdrawal), is dismissed, or takes a leave of absence prior to completing 60% of a semester (calendar days). Financial aid may be adjusted based on the percentage of the semester completed before withdrawing. Once the 60% point of the semester is reached, 100% of financial aid has been earned, and no reduction will be made based on the federal Return to Title IV (R2T4) Funds regulations. Additionally, if a student fails to earn a passing grade in any of their classes in a given semester, Hampden-Sydney is required to determine whether the student unofficially withdrew from the College. If it is determined that the student unofficially withdrew and therefore did not complete any of his classes for the semester, the R2T4 regulations must be followed.
These same rules will apply to H-SC scholarships and grant aid if the student qualifies for a pro-ration of his tuition due to the withdrawal. For the college refund policy, please refer to the Academic Catalogue section Expenses and Financial Aid – Return of Fees.
Before a student takes any action to withdraw, it would be beneficial to learn the refund policy the Business Office will use as well as the implications of any re-calculations of financial aid. Any questions concerning aid should be addressed to the Financial Aid Office. All questions concerning final resolution of the account balance should be addressed to the Business Office.
If a student begins the official withdrawal process or provides official notification to the Dean of Student’s Office of his intent to withdraw, the date of the institution’s determination that the student withdrew would be the date the student began the official withdrawal process, or the date of the student’s notification, whichever is later. The student’s withdrawal date may be different if his last day of academic activity was before or after the date of the institution’s determination that the student withdrew. If a student gives no official notification, Hampden-Sydney College has the option of using the midpoint of the semester or a withdrawal date documented with the student’s attendance at an academically related activity.
The amount of aid earned is calculated on a pro rata basis through 60 percent of the semester. After 60 percent of the semester has been completed, all Title IV and institutional funds a student was scheduled to receive are considered 100% earned. It is possible for students whose accounts were paid in full at the start of a semester to owe payment for the balance of charges after the return of Title IV funds and any applicable pro-ration of institutional aid is completed.
If a student did not receive funds that were earned, he may be due a post-withdrawal disbursement. If the post-withdrawal disbursement includes loan funds, Hampden-Sydney College must obtain permission from the student before it can credit them to the student’s H-SC account. The student may choose to decline some or all of the loan funds to limit additional debt. The student is given fourteen days to make a decision about the loan funds. Hampden-Sydney will automatically use all or a portion of a student’s post-withdrawal disbursement of grant funds for tuition, fees, room and board charges.
The following steps are completed in order to determine if any return of Title IV federal financial aid is required.
- Determine the percentage of federal financial aid the student has earned:
Divide the number of days the student completed by the total number of days in the semester (calendar days, including weekends but not breaks longer than five days).
- Determine the amount of federal financial aid earned:
Multiply the percentage of aid earned (step 1 above) by the amount of federal Title IV aid the student received for the semester.
- Determine the difference between the amount of federal Title IV aid the student received for the term and the amount of Title IV aid the student earned. If the amount of Title IV aid earned is less than the amount of Title IV aid the student received, then a return of funds calculation will be necessary. If the amount of Title IV aid earned is more than the amount of Title IV aid the student was eligible to receive, he may be due a post-withdrawal disbursement.
- Determine if a return of federal Title IV funds is required. If a return of Title IV funds calculation is necessary, Hampden-Sydney must return the amount of Title IV funds for which it is responsible no later than 45 days after the date of the determination of the date of the student’s withdrawal. Refunds are allocated in the following order:
- Unsubsidized Federal Direct Loan
- Subsidized Federal Direct Loan
- Federal Direct PLUS (parent) Loan
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant
- TEACH Grant
- Iraq Afghanistan Service Grant
NOTE: At the time of a student’s withdrawal, he will be presented with a copy of the Return to Title IV Funds policy. Following the Return to Title IV Funds calculation, the student will be formally notified of the amount of aid earned and the amount of aid to be returned. Adjustments to Title IV aid are provided electronically to the Department of Education and to the Business Office no later than 45 days after the date of the determination of the date of the student’s withdrawal.