Graduate Financial Aid Withdrawal Guide
APU’s graduate institutional withdrawal policy is independent of, and in no way contingent upon, the federal government’s Return to Title IV (R2T4) policy that must always be considered when a student totally withdraws from classes. The purpose of this section is to help you understand the difference between the institutional and governmental policies and the consequences withdrawing may have upon your account and financial aid.
Official Withdrawal Process
The Graduate and Professional Center Registrar’s office is responsible for the official withdrawal process from APU graduate studies. Students with financial aid will have the opportunity to talk with a Student Account Counselor regarding the effect withdrawing will have upon their current aid eligibility. The process begins by completing the entire Enrollment Activity Form (PDF), also available at APU’s Graduate Client Services, and securing all the necessary signatures requested.
APU’s Institutional Withdrawal/Refund Policy
Students may drop a class until the Last Day to Register or Add/Drop Classes to receive 100% tuition refund. In the event a student withdraws from a class, APU’s refund of tuition will be made as follows:
|Through the Last Day to Register or Add/Drop||100% refund|
|After deadline, up to 24% of session||90% refund|
|25–39% of session||50% refund|
|40–59% of session||25% refund|
|60% of the session or greater||0% refund|
Federal ‘Return to Title IV’ (R2T4) Policy
It is important to note that the federal government awards financial aid with the assumption that a student will complete the courses for which one is receiving the aid. If a student receives a federal aid disbursement but fails to begin at least half-time attendance for the term, the student is not eligible for the aid. If a student withdraws from all concurrent courses in a traditional 15-week semester, or does not complete all the sessions of a modular (sequential) course schedule, in some cases the student only earns a portion of the financial aid already received. APU is required by federal regulations to use a prescribed formula to calculate the unearned portion of the financial aid received and return it to the Title IV programs.
Traditional 15-week semester R2T4 policy
The percentage of Title IV financial aid the student has earned is determined by dividing the number of days completed in the term when withdrawing by the total number of days in the term.
For example, if there were 102 total days in the term and the student completed 24, the student would earn 23.5% of the Title IV aid received. (24/102 = 23.5)
If the student has attended long enough to earn 60% or more of the aid, no further calculation is needed and all the aid for the semester is retained. If less than 60%, the percentage of aid earned is then multiplied by the total amount of Title IV aid that was disbursed or was eligible to be disbursed for the term. The result is the amount of Title IV aid earned by the student. For example, the student earned 23.5% of the aid for the semester and received the following awards:
|Unsubsidized Direct Federal Loan||$5,970|
|Subsidized Direct Federal Loan||$4,229|
The calculation would be 23.5% x $10,199 = $2,396.77. The amount of the total aid received that the student earned is $2,396.77.
Next, the amount of aid earned is subtracted from the total amount of aid received to determine the amount that must be returned to the Title IV programs. Continuing our example, the calculation would be $10,199 – $2,396 = $7,802.23.
The R2T4 regulations require APU to return a portion of the unearned aid. The amount is calculated by multiplying the percentage of unearned Title IV aid (100% – 23.5% = 76.5%) by the institutional charges for the term. For example, the student had the following institutional charges for the term:
In this example, the calculation is $3,735 x 76.5% = $2,857.28. APU must return $2,857.28 of the student’s Title IV aid back to the programs. The school is required to repay the following sources in order, up to the total net amount disbursed from the source:
- Unsubsidized Direct Federal Loan
- Subsidized Direct Federal Loan
- Perkins Loan
In this case, the entire $2,857.28 would be returned to the Unsubsidized Direct Federal Loan because the student originally received more than this amount from that source.
It is important to note the results of APU’s institutional policy and the R2T4 calculation will both affect the student’s account balance, but in no way are the policies connected or contingent upon each other.
While APU would be required to return $2,857.28 of the $7,802.23 unearned aid amount, the student would be responsible for the remainder. However, if the remaining portion was from aid originally awarded as loans, the student pays the remaining unearned aid according to the terms of the borrower promissory note of the loan. In most cases, repayment of a student loan begins 6 months after the student withdraws or ceases to be enrolled at least half time.
Modular Term R2T4 Policy
The U.S. Department of Education has specific regulations that govern the R2T4 calculation for students enrolled in modular courses. Modular courses are defined as those that do not span the entire length of the term and are offered sequentially rather than concurrently (although it is possible for modules to overlap). At APU, Fall 1 and Fall 2 sessions, and others similar in structure, would be considered modules for financial aid purposes.
Regulations require the entire period and combination of modular courses to be considered when determining the portion of financial aid that has been earned by a student who withdraws. The student is considered withdrawn when he fails to complete the scheduled enrollment. At this point, the percentage of completion is calculated by dividing the number of completed days by the number of days the student was scheduled to attend. (Scheduled breaks of at least five days are omitted from the calculation.) The fact that a student completes at least one course is no longer a valid reason for not doing the calculation.
A student who withdraws from a current module but provides written confirmation of plans to return and attend a future module that begins within 45 days of the end of the current module is considered to still be enrolled.
If the student provides written confirmation but then fails to attend a future module, the student is considered withdrawn from the initial date of the original module.
If the student withdraws without a written confirmation to attend in the future but returns during the same period, the student is able to receive all funds for which the student has eligibility according to their current enrollment status.
Treatment of Unofficial Withdrawals
If a student fails to officially withdraw and receives a combination of all Fs, FNs, INs, and NCs as grades for the semester, the Department of Education considers the student to have unofficially withdrawn from classes. APU is required to investigate and determine when the student actually last attended class and then perform the required R2T4 calculation. If the date of withdrawal cannot be confirmed, the R2T4 calculation is done using a 50% completion rate. This process is usually completed well after the end of the semester, once grades are submitted.