Federal regulations mandate how Union must determine the amount of Title IV program assistance that you earn if you withdraw from school. The federal programs covered by these regulations are: Federal PELL Grants, Academic Competitiveness Grants, National SMART grants, TEACH Grants, Stafford Loans, PLUS loans, Federal Supplemental Educational Opportunity Grants (SEOGs), and Federal Perkins Loans.
When you withdraw during your payment period (fall, winter, or spring term), the amount of Title IV program assistance that you have earned up to that point is determined by a specific formula provided by the Department of Education. This is separate from, so should not be confused with, Union's tuition refund policy.
The amount of assistance you have earned is determined on a pro rata basis. For example, if you completed 30% of your payment period, you earn 30% of the federal assistance you were originally scheduled to receive. Once you have completed more than 60% of the payment period, you earn all of the assistance that you were scheduled to receive for that period.
For the 2012-2013 academic year, this means that any student withdrawing during the fall term prior to October 21, 2012 will require a refund of a portion, if not all, of their federal funds. Similarly, refunds of federal funds will be necessary for students who withdraw during winter term prior to February 20, 2013 as well as for those withdrawing during spring term prior to May 15, 2013.
The following example illustrates the federal refund calculation. In this example, the student withdraws during the fall term on October 9, 2012. Having completed 35 days in a term of 77 days, the student is eligible for 45.5% of her federal funds (35/77).
|
Title IV Grant Programs |
Amount Disbursed |
|
PELL Grant |
$1,500 |
|
SEOG grant |
$333 |
|
Title IV Loan Programs |
Amount Disbursed (Net) |
|
Subsidized Stafford Loan |
$1,493 |
|
Unsubsidized Stafford Loan |
$663 |
|
PLUS Loan |
$4,500 |
| Total Federal Funds Paid to Student's Account | $8,489 |
| Student's Eligibility | x 45.5% |
| Funds Student is Eligible to Keep | $3,862.50 |
| Unearned Title IV Funds | $4,626.50 |
When refunds are necessary, as in the illustration above, the federal government requires that loan funds are refunded first in the following order: (1) Unsubsidized Stafford Loan, (2) Subsidized Stafford Loan, (3) Perkins Loan and (4) PLUS Loan. If further refunds are necessary, then grants will be refunded.
There are rare circumstances when you may not have received all of the funds that you earned. For example, your student loan was originated and certified but then you withdrew prior to the funds posting to your account. Though you may not be eligible for the entire loan amount, you may be eligible for a portion of the funds en route to your student account. When this occurs, you may be due a Post-Withdrawal disbursement. If your Post-withdrawal disbursement includes loan funds, we will contact you to notify you of your eligibility. We must then receive written confirmation of your choice to accept or decline some or all of the loan funds. Remember, the requirements for Title IV program funds are separate from Union's tuition refund policy so accepting such funds can help to cover any tuition, fees, room and board charges for which you are responsible. For information on Union's Tuition Refund Policy, please see Student Accounts.
In addition to federal funds, you may require a refund of a portion, if not all, of your institutional scholarship(s). If you are in receipt of such funds, you should schedule an appointment with your financial aid counselor prior to withdrawing to review the impact of withdrawing on scholarship funds.
If you have questions about your Title IV program funds, you can call the Federal Student Aid Information Center at (800) 433-3243. TTY users may call (800) 730-8913. Information is also available on Student Aid on the Web.
Union College's Code of Conduct Regarding Private Loans and Student Choice
As a responsible partner in processing and certifying of private loans for Union students and parents, the Financial Aid Office staff abides by the following code of conduct.
- Union does not enter into any revenue-sharing arrangements with any lender.
- Union does not allow any officer or person involved with student loans to either solicit or accept gifts from a lender, guarantor or servicer of student loans where the gift has more than a nominal value.
- Union does not allow its financial aid staff or anyone in a position of having influence over student loan decisions to consult with lenders for a financial benefit.
- Union will not assign a borrower's loan to a particular lender or refuse to certify any loan based on the borrower's selection of a lender.
- Union will not request or accept any offer for student loan funds in exchange for either a specified number of loans made or a specific loan volume.
- Union will not accept any offer from any lender to provide call center staffing or financial aid office assistance.
- Members of Union's Financial Aid Office staff will not accept anything of value for serving on an advisory board, commission, or group established by a lender, guarantor, or group of lenders.
