Withdrawl: Returning Financial Aid
If you need to withdraw during an academic term, you need to follow the established withdrawal procedure and will be subject to the institution’s withdrawal policy.
Federal regulations require that North Central College have a written policy for the refund and repayment of Federal Aid (Supplemental Educational Opportunity Grant, Pell Grant, Perkins Loan, Federal Direct Loan and Federal Parent Loan) received by students who withdraw during a term for which payment has been received. This policy is effective only for those students who completely terminate their registration (i.e., cancels his/her registration, withdraws or is dismissed) or stops attending classes before completing 60% or more of the enrollment period.
For purposes of this policy, a refund refers to the difference between monies originally paid for institutional charges by financial aid and/or cash payments and the amount retained by the institution after withdrawal. A repayment can occur when cash has been disbursed to a student from financial aid funds in excess of institutional charges. If the student receives federal financial assistance for which the student is later deemed ineligible, a portion of these funds must be returned to the programs.
The calculation is based on the period of enrollment completed. That percentage is computed by dividing the total number of calendar days in the term into the number of calendar days completed, as of the date of student withdrawal. The percentage of Federal assistance to which the student is entitled (has "earned") is equal to this percentage of the term completed, up to 60%. If the withdrawal occurs after 60% of the term is completed, the student is considered to have "earned" 100% of the federal aid disbursed.
The amount of Federal Aid which must be returned is based on the percentage of "unearned" aid. That percentage is computed by subtracting earned aid from 100%. The College is required to return the lesser of (1) the unearned aid percentage applied to institutional charges and (2) the unearned percentage applied to total Federal aid received. The student is required to return the difference between the amount of unearned aid and the amount returned by the College. If the student (or parent in the case of a PLUS Loan) is required to return a portion or all of their loan proceeds, the calculated amount is to be repaid according to the loan terms.
A more in-depth explanation of this policy is available in the Office of Financial Aid.