Withdrawing and Return of Title IV Funds

Students who need to cancel their registration or withdraw from all classes after enrolling for any academic term are required to follow the university's official withdrawal procedures. Failing to do so, may result in an obligation to pay fees as well as the assignment of failing grades in all courses and the need to apply for readmission before being allowed to enroll in another academic term.

Students who receive federal financial aid funds and withdraw from all courses within the first 60% of the term, should consult with the Financial Aid office prior to withdrawing from the university regarding any required return or repayment of grant or loan assistance received for that academic term or payment period.  

Students who withdraw or cease to be enrolled prior to the end of a payment period and have received Federal or State aid must have a Return of Title IV Funds (R2T4) calculation performed or a pro-rata adjustment to their aid.  This calculation is performed by the Financial Aid Office. A student begins earning Title IV funds on the first day of attendance.  Therefore, if a student withdraws within the first 60% of the term, Stanislaus State will perform a Return of Title IV funds (R2T4) calculation using the number of days the student attended.  A student that withdraws from all units before the first day of the term is not subject to Return of Title IV funds calculation all federal and state funds will be canceled and returned to the programs.

The percentage earned is based on the last date of attendance from the semester attended. This percentage is then applied to the aid disbursed or that could have been disbursed to determine the amount earned. If the amount disbursed is less than the amount earned, we will notify students of the eligibility and give the opportunity to receive that aid. If the amount disbursed is greater than the amount earned, then unearned funds have to be returned. This may include a return of funds by the school and repayment by the student.

Federal Aid will be returned in the following order (as required under Federal Regulations):

  • Unsubsidized Federal Direct Loan
  • Subsidized Federal Direct Loan
  • Federal PLUS Loan (Graduate Student)
  • Federal PLUS Loan (Parent)
  • Federal Pell Grant
  • Federal Supplemental Educational Opportunity Grant (FSEOG)
  • Federal TEACH Grant

Remember that this date is only for the purposes of the Federal aid recalculation. For State or Institutional aid such as Cal Grant, State University Grant, Middle Class Scholarship and Campus Scholarships, there are different return policies for those programs.

If you plan on withdrawing:

How do I notify Financial Aid that I am withdrawing?
You should consult with the Financial Aid office prior to withdrawing from the university. Once you officially withdraw from all your classes using the appropriate registration procedures, if required, we will do the recalculation of aid for you.

What happens next?
We must recalculate your eligibility according to federal regulations for the aid you have received if you withdraw from all your classes within the first 60% of the term.

The return of funds by the school is paid from University resources, which may create an obligation from you to the University. Any grant and loan repayment you may owe will be payable to the campus.

If a fee refund is applicable these funds will first be used to cover any school return of funds, then student portion, with any remainder being issued to you

How will I know the results?
You will receive a letter stating how much aid was returned and you how much you are eligible for. If you owe a repayment, you will receive a billing notice from Student Financial Services for the amount of funds that you will need to return. If you are eligible to receive a refund and have completed a refund request with Student Financials, a refund will be issued to you.

What happens if I owe a repayment?
Until you pay the balance in full: you will not be eligible for further federal financial aid and not be allowed to enroll in any future semesters or access University services (transcripts, etc.).

What is the recalculation process?
The first step is to determine your last date of attendance. Based on withdrawal information, the date of withdrawal is set as the last date of attendance for the last course withdrew.

The last date of attendance, is what determines the percentage of the semester you attended. This percentage is then applied to the aid disbursed or that could have been disbursed to determine the amount you earned.

How do you determine the withdrawal date for purposes of recalculating Financial Aid?
During the first twenty days of the term, we use the date you accessed MyStanState portal and withdrew from all of your classes.  After this initial period, we are required to use the last date of attendance listed by the professors on the withdrawal form and determined by Enrollment Services.