Wayne State University

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Withdrawals & Return of Funds

If you withdraw from all classes during a semester, you may be required to repay a portion of your financial aid.

When the Law Financial Aid Office receives official notice of your withdrawal, we will recalculate your financial aid eligibility based on the date of withdrawal. The Law School Financial Aid Office will determine the amount of aid you are entitled to keep (if any) and the amount of funds that must be returned to the University, the State, Title IV (federal) programs and your lender.

The Return of Title IV Funds is the amount of unearned aid you received at the beginning of the semester that must be returned to the federal aid programs. Any aid received in excess of the earned amount is considered unearned. The earned portion is calculated on a daily basis using calendar days from the first day of instruction.

Federal financial aid regulations require the WSU Law School Financial Aid Office is to calculate a Return of Title IV funds and refund amount for all financial aid recipients who withdraw, or are dismissed during a semester. The policy applies to financial aid recipients who discontinue enrollment in all classes on or after the first day of the semester.

The Office of Student Financial Aid (OSFA) strongly encourages you to discuss with a Financial Aid Administrator the effect withdrawing from all classes will have on your financial aid before you implement the change.

After officially withdrawing from all classes, you must immediately notify OSFA of your enrollment status change.

Title IV Refund Policy

Withdrawals and Return of Title IV policy

Federal financial aid regulations stipulate that students who withdraw from all classes prior to completing 60 percent of the semester may only keep the federal financial aid they have "earned" up to the time of withdrawal. Title IV funds that were disbursed in excess of the earned amount must be returned by the University and/or the student to the federal program and/or the federal loan lender.

Funds included in the Return of Title IV funds process: Unsubsidized Federal Stafford Loans, Subsidized Federal Stafford Loans, Federal Perkins Loans, and Federal PLUS Loans.

Title IV funds must be returned in the following order:
 
  1. Unsubsidized Federal Direct Loans
  2. Subsidized Federal Direct Loans
  3. Federal Perkins Loans
  4. Federal Grad PLUS Loans
  5. Other Title IV assistance 

This calculation is applicable to federal aid only. Scholarship funds, alternative loan funds and other awards are subject to Law School and lender policies.

NOTE: Students are considered to have earned 100% of their Title IV funds if they withdraw after the 60% completion point of the semester. 

Financial aid recipients should contact the Office of Student Financial Aid before withdrawing from the university or applying for a Medical Withdrawal or an Exception to Enrollment Appeal to determine the effect of this action on their financial aid. 

Official Withdrawal

Return of Title IV Funds: If a student officially withdraws (including Medical Withdrawals and Exceptions to Enrollment Appeals) prior to completing 60 percent of the term, a calculation must be performed to determine the "earned" amount of Title IV funds the student is entitled to keep.

The unearned portion (based on the percentage of the term remaining) of the aid is returned to the lender or aid program. For example, if a student completes only 20 percent of the term, then he or she has failed to earn 80 percent of the federal financial aid that was disbursed, or could have been disbursed, prior to the withdrawal. If the return of the funds creates a balance due on the student account, the student will be responsible to pay that balance.

Unofficial Withdrawal
 
Non-attendance is not an acceptable reason for not officially dropping a class in a timely manner. Students who do not receive ANY "earned" grades are considered to be unofficial withdrawals.

Return of Title IV Funds: In an unofficial withdrawal, 50 percent of the aid used to pay direct educational costs (tuition, fees, room and board) must be returned to the federal loan lender or federal aid program. If the return of the funds creates a balance due on the student account, the student will be responsible for paying the balance.

Retroactive Withdrawal

If funds have been returned to federal programs for a student based on his or her official or unofficial withdrawal, those funds cannot be reinstated if the student petitions for, and receives, a retroactive withdrawal (official, medical withdrawal, or exception to enrollment.)