Federal Financial Aid Refund Policy

• Policy for students called up to active duty in the military
• New Rules for Online and Evening Division Programs Effective July1, 2011

The Title IV Financial Aid you receive from the federal government - Pell Grants, either type of Federal Direct Student Loan, a Federal Perkins Loan, Federal SEOG grant,  or a Federal PLUS loan or Federal Grad PLUS Loan - is for your use while you are a student. Recent federal law states that if you stop being a student for any reason before completing 60% of the semester (See estimated key dates below but remember these dates are subject to change), the government wants the "unearned" portion of that money repaid immediately.

The amount that you have to pay back is based on the timing on your withdrawal. The longer that you are enrolled as a student, the more money you are entitled to keep. Depending upon when the withdrawal takes place, the amount of money you have to repay could be significant. 

For the Fall 2012 Semester the projected dates and percentages are as follows (using the calendar for full-time undergraduates):

For the Spring 2013 Semester the projected dates and percentages are as follows:

The above dates are subject to change. See the academic calendar page for more information. EXAMPLE: If you withdraw on September 2x, 25% of the semester has passed, and you will owe back 75% of your federal financial aid for the semester.

The exact dollar amount to be returned to the federal government is determined first by the Office of Scholarships and Financial Aid. Then, the exact dollar amount a student owes on his/her Loyola account will be calculated by the Office of Student Finance and depends on each student's unique situation, including outstanding obligations for housing, campus dining, and other charges that are not pro-rated as tuition is pro-rated. Please note that the amount of federal financial aid returned is not related in any way to any amount of institutional refund of charges (tuition, etc.) that you may have received.

Federal Funds will be refunded in the following order:

Federal Direct loans (unsubsidized then subsidized), Federal Perkins Loan, Federal PLUS Loans, Federal Grad PLUS Loans, Federal Pell Grants and Federal SEOG grants. Federal Work Study funds are not included in the refund formula because they reflect payment for actual hours of work completed by the student.

Withdrawal from the university

The decision to withdraw from the University is often complicated and it is important that you understand all your options. If you find yourself considering withdrawal, it would be wise to consult with your academic advisor, your financial aid counselor and a representative from the Student Finance Office before taking final action. Withdrawal forms are available in the Dean's Office of each college.

If you unofficially withdraw(stop attending classes without completing a withdrawal form), you will be subject to this refund policy.The amount of aid to be refunded will be based on your last documented day of attendance at one of your scheduled classes. If we can not document your attendance in any class for the semester, we must return all of your federal aid funds.

We want you to be comfortable with your decision, should you decide to withdraw. If you have questions about your Title IV Federal Financial Aid, please do not hesitate to contact the Office of Scholarships and Financial Aid.

NOTE: If the total amount of federal grant and/or loan assistance that the student earned is greater than the total amount of federal grant and/or loan assistance that was disbursed to the student as of the withdrawal date, the student may be eligible for a "post-withdrawal" disbursement. If federal loan funds are used to credit a post withdrawal disbursement, the university must provide the student,or parent in the case of a PLUS loan, the opportunity to cancel all or a portion of the post-withdrawal disbursement. The university has 45 days to provide this notice to the student or parent. The student or parent must respond to this notice within 14 days of the date the institution sent the notification. If the student or parent does not respond, the university cannot make a post withdrawal disbursement of federal loan funds.

After determining the amount of funds to be returned to the federal aid programs, any remaining credit balance on the student's account with the Office of Student Finance will be credited against any institutional aid accounts. If a credit balance still remains after the institutional aid accounts have been adjusted, the remaining funds will be returned to the student and his/her family. Students should complete an online refund request form to initiate this process (to confirm where the refund should be sent).

The distribution of refunds for students receiving federal financial aid is based on the principle that the primary responsibility for meeting educational costs rests with the family.

Updated August 13, 2012