Refund/Repayment Policy for Financial Aid Recipients
When financial aid recipients withdraw during a semester, the amount of federal and state assistance that students have earned up to that point is determined by a formula specified by the Department of Education. If students were disbursed less assistance than the amount earned up to the point of withdrawal, they are eligible to receive the additional funds. If students received more assistance than earned, then they and the institution will share in returning excess funds to the appropriate federal agency. A percentage of book charges must also be returned, which will cause debt to Middle Georgia State University. To avoid these charges, students should contact the Bookstore to see if the books can be returned for credit. The Office of Student Financial Aid follows the published institutional refund policy.
The amount of assistance earned is determined on a pro-rata basis. That is, if students completed 30 percent of the period of enrollment, they have earned 30 percent of the assistance originally scheduled. Once students complete more than 60 percent of the enrollment period, all assistance originally scheduled has been earned.
If students received excess funds based on this formula, the University must return a portion of the excess equal to the lesser of:
- The institutional charges multiplied by the unearned percentage of student funds, or
- The entire amount of the excess funds.
If the University is not required to return all of the excess funds, students must return the remaining amount. Any loan funds that students must return must be repaid by the students (or their parents for a PLUS loan) in accordance with the terms of the promissory note.
If students are responsible for returning grant funds, they do not have to return the full amount. Financial Aid policy provides that students may retain 50 percent of the grant amount calculated for return. Any amount students are required to return, however, is considered to be a grant overpayment. Arrangements to repay these funds must be made with the University within 45 days. After this period the University is required to report the overpayment to the Department of Education and the student must then make arrangements with the Department to settle the debt.
Per federal regulations, schools are required to review students who received federal financial aid and failed to earn a passing grade in any of the classes. An assessment must be made to determine whether the students earned the non-passing grades while attending classes or stopped attending classes but did not officially withdraw. Faculty will report the students’ last day of attendance in their class and this date will be used to determine if any funds that must be returned to the federal and state aid programs per pro-rata calculations.