Consequences of Withdrawal
Treatment of Title IV Aid When a Student Withdraws
The law specifies how your school must determine the amount of Title IV program assistance that you earn if you withdraw from school. The Title IV programs that are covered by this law are: Federal Pell Grants, Iraq and Afghanistan Service Grants, Federal Supplemental Educational Opportunity Grants (FSEOGs), Direct Loans and Direct PLUS Loans. Though your aid is posted to your account at the start of each period, you earn the funds as you complete the period.
If you withdraw during your payment period or period of enrollment (your school can define these for you and tell you which one applies to you), the amount of Title IV program assistance that you have earned up to that point is determined by a specific formula. If you received (or your school or parent received on your behalf) less assistance than the amount that you earned, you may be able to receive those additional funds. If you received more assistance than you earned, the excess funds must be returned to the Department of Education by the school and/ or you.
The amount of assistance that you have earned is determined on a pro rata basis. 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 payment period or period of enrollment, you earn all the assistance that you were scheduled to receive for that period.
If you did not receive all of the funds that you earned, you may be due a post-withdrawal disbursement. If your post-withdrawal disbursement includes loan funds, your school must get your permission before it can disburse them. You may choose to decline some or all of the loan funds so that you don’t incur additional debt. Your school may automatically use all or a portion of your post-withdrawal disbursement of grant funds for tuition, fees, and room and board charges (as contracted with the school). The school needs your permission to use the post-withdrawal grant disbursement for all other institutional charges. If you do not give your permission (some schools ask for this when you enroll), you will be offered the funds. However, it may be in your best interest to allow the school to keep the funds to reduce your debt at the school.
There are some Title IV funds that you were scheduled to receive that cannot be disbursed to you once you withdraw because of other eligibility requirements. For example, if you are a first-time, first-year undergraduate student and you have not completed the first 30 days of your program before you withdraw, you will not receive any Direct Loan funds that you would have received had you remained enrolled past the 30th day.
If you receive (or your school or parent receive on your behalf) excess Title IV program funds that must be returned, your school must return a portion of the excess equal to the lesser of:
- Your institutional charges multiplied by the unearned percentage of your funds, or
- The entire amount of excess funds.
The school must return this amount even if it didn’t keep this amount of your Title IV program funds.
If your school is not required to return all of the excess funds, you must return the remaining amount.
Any loan funds that you must return, you (or your parent for a Direct PLUS Loan) repay in accordance with the terms of the promissory note. That is, you make scheduled payments to the holder of the loan over a period of time.
Any amount of unearned grant funds that you must return is called an overpayment. The maximum amount of a grant overpayment that you must repay is half of the grant funds you received or were scheduled to receive. You do not have to repay a grant overpayment if the original amount of the overpayment is less than $25. You must make arrangements with your school or the Department of Education to return the unearned grant funds.
The requirements for Title IV program funds when you withdraw are separate from any refund policy that your school may have. Therefore, you may still owe funds to the school to cover unpaid institutional charges. Your school may also charge you for any Title IV program funds that the school was required to return. If you don’t already know your school’s refund policy, you should ask your school for a copy. Your school can also provide you with the requirements and procedures for officially withdrawing from school.
If you have questions about your Title IV program funds, you can call the Federal Student Aid Information Center at 1-800-4-FEDAID (1-800-433-3243). TTY users may call 1-800-730-8913. Information is also available on Student Aid on the web at http://www.studentaid.gov
Revised 08/01/2024 from FSA Student Aid Handbook
Satisfactory Academic Progress (SAP) Policy for Students to Receive Federal Student Aid
Federal regulations require a student receiving Federal Student Aid to maintain satisfactory academic progress (SAP) towards a degree. Eligibility is determined based on the student’s Qualitative measure (grade point average), Quantitative measure (pace of progress towards the degree), and the Maximum Timeframe (the total number of credit hours attempted). If the student does not meet all three of the SAP requirements, the student may no longer be eligible for Federal Student Aid.
Qualitative Measure (Grade Point Average GPA): Eligibility will be determined based on the student’s overall GPA hours (transfer and University of Montevallo) and the student’s University of Montevallo (UM) cumulative GPA.
| If a Student’s Overall GPA Hours are: | Minimum Cumulative UM GPA Required: |
| 0-29 | 1.50 |
| 30-59 | 1.70 |
| 60-89 | 1.90 |
| 90+ | 2.00 |
GPA hours are credit hours for which a standard letter grade is received (A, B, C, D, and F).
For example, a student has attempted 30 credit hours during his entire college career, 15 credit hours earned with a GPA of 2.00 from another college and 15 credit hours earned from UM with a 1.50 GPA for a total of 30 Overall GPA Hours. His overall GPA is 1.75.
The student is not meeting this measure since his cumulative UM GPA is 1.50 which is less than the minimum cumulative 1.70 UM GPA a student must earn based on 30 overall GPA hours.
Quantitative Measure (Pace of Progress towards a degree or percentage of hours earned):
Students must earn a minimum of 67 percent of all credit hours attempted, including transfer hours placed on the UM transcript and for UM classes for which the student received grades of W, I, IP, NC, CR and P. Earned hours include credit hours for which the student receives a passing grade (A, B, C, D, CR or P). This percentage may be rounded up to 67 percent from 66.66 percent.
For example, a student has attempted a total of 24 credit hours during her entire college career and passed 16 credit hours. The student passed 66.67% of credit hours attempted (16 divided by 24) which is less than the 67% required. However, the student is meeting this measure since the 66.66% may be rounded up to 67%.
Maximum Timeframe (Total hours a student may attempt and receive Federal Student Aid):
Students may not receive Federal Student Aid, which may include Pell grant, Federal Direct or Parent Plus loans, after attempting 150% of the hours required for completion of the degree. This includes transfer hours placed on the UM transcript and for UM classes for which the student received grades of W, I, IP, NC, CR, P, S, and U.
For example, a student must earn 120 credit hours to be eligible for a degree. Once a student attempts 180 credit hours (120 hours required for the degree X 1.50 = 180 credit hours) the student is no longer eligible for Federal Student Aid.
Incomplete grade – Grades of I and IP are included in hours attempted but not in GPA hours or GPA calculation until the student completes the course. If the student does not complete the course in the allotted time for which they received an I grade, the grade automatically becomes an F.
Withdrawals – Grades of W are included in hours attempted but not in GPA hours or GPA calculation.
Repeat Courses – The credit hours for every occurrence of a repeat course are included in hours attempted and GPA hours. The credit hours for only one occurrence of a repeated, previously passed course are included in earned hours.
Transfer Hours – All credit hours from other schools that are placed on the UM transcript will be included in hours attempted and credit hours from other schools for which a student received a standard letter grade (A, B, C, D, and F) will be included in overall GPA Hours. The credit hours for passed courses (and only one occurrence of a repeated, previously passed course) are included in overall earned hours.
Remedial Courses – Any remedial courses will be treated the same as regular courses.
Frequency of check – A student’s SAP will be checked at the end of each semester. Transfer students’ SAP will be checked after admission. If a student’s transcript from another college is received after initial SAP review, any transfer hours will be included in the next SAP check.
Warning Status – A student not meeting the Quantitative or Qualitative SAP measures will be assigned a SAP status of Warning for the next semester, meaning the student will be able to receive Federal Student Aid one more semester. If the student is not meeting SAP standards at the end of the next semester the student will not be able to receive Federal Student Aid.
Regaining Eligibility – Students who lose eligibility for Federal Student Aid by not meeting SAP measures may regain eligibility by getting back in compliance with the SAP measures explained above. Sitting out of college will not help a student regain Federal Student Aid eligibility.
Probation Status – A student not meeting the SAP standards and has had an appeal for financial aid suspension approved will be assigned a SAP status of Probation. The student must be meeting the SAP standards at the end of the next semester or meeting the requirements of an academic plan, as determined by the Student Aid Office, to be eligible for Federal Student Aid for the subsequent semester.
Second Bachelor’s Degree – SAP for students pursuing a second Bachelor’s degree will be determined using the same requirements of this policy, with the exception of the 180 credit hour maximum timeframe. Students pursuing a second bachelor’s degree and who are meeting measures 1 and 2 above but have attempted 180 credit hours or more must provide an academic plan prepared by their dean or dean’s designee to the Student Aid Office showing the courses needed to complete the second bachelor’s degree after all other previous coursework has been applied towards the second bachelor’s degree. The plan will be reviewed at the end of each semester by the Student Aid Office and if the student is following the plan, the student will be eligible for Federal Student Aid.
Graduate and Doctoral Students – SAP for graduate and doctoral students will generally be determined using the same requirements of this policy. In addition, students academically suspended are not considered to be meeting SAP requirements and are not eligible for Federal Student Aid.
Students admitted unconditionally as a regular student in a graduate degree program will be given one year to complete any undergraduate prerequisite courses. Students may earn more than one graduate degree and receive Federal Student Aid if they are in good standing with the UM Graduate program.
APPEAL PROCESS
SAP Appeal Process – A student who does not meet the requirements for SAP may choose to appeal to the Student Aid Office for an exception on the grounds of a special or extenuating circumstance that contributed to their SAP failure, and what has changed that will allow the student to regain SAP at the next semester. Such appeals must be submitted on the Satisfactory Academic Progress (SAP) Appeal Form for Federal Student Aid, available through the Student Aid Office. The completed appeal should include available supporting documentation, relative to the extenuating circumstances and what has changed as noted in the appeal. In addition, the student must provide an academic plan from their Dean or Dean’s designee.
SAP Maximum Timeframe Appeal Process – A student who does not meet the requirements for SAP Maximum Timeframe may choose to appeal to the Student Aid Office. Such appeals must be submitted on the Maximum Timeframe Satisfactory Academic Progress Appeal Form for Federal Student Aid, available through the Student Aid Office. The appeal should include a student statement letter, with supporting documentation if available, relative to the extenuating circumstances noted in the appeal. In addition, the student must provide an academic plan for degree program completion from their Dean or Dean’s designee.
Decisions made by the Student Aid Office relative to appeals, as well as changes in SAP status to Warning or Failure will be sent to the student via the student’s UM email. SAP status may be viewed in Banner Self Service.
It is the responsibility of the student to initiate any appeal for reinstatement of federal financial aid eligibility. Academic reinstatement does not automatically constitute reinstatement of aid eligibility.
Revised 08/01/2024 from FSA Handbook
