Critical Data Entry Issue
Financial Aid and the Impact of Canceling/ Withdrawing
When a student is receiving federal financial aid it is important for a school to determine which option is best for the student when the student has to leave school before the end of the term. To determine which option is best for the student a school must look at the following:
Is the student receiving federal financial aid?
Has the student attended any classes?
Has the student received their living expense refund?
If any of these are true, the student should be withdrawn from the program and not canceled. A withdrawn student is able to keep their living expense refund and they will not be required to begin repayment of their student loans until their six month grace period has expired. The six month grace period will begin the date the student withdrew from the program.
In order to determine if the student has received federal aid and it is within 2 weeks of the first day of class, please contact the Student Financial Assistance & Education Office to determine if the student may be able to receive a cancellation. If the aid is not disbursed, we can return the aid and the student has no obligation to the student loan lender for any payment. However, if a student is not receiving federal aid, the school can then cancel the student if they choose. Using this option, the school must understand that if the student has prior federal loans at another institution, and the student has used the grace period, the prior loans will become due within 30 days of the cancellation date.
In summary: “A cancellation should always be used for students who never attended class.” All others should be withdrawn from the term.
If you have questions regarding which to use on a case by case basis, please contact Patricia Scott, – 6-7347 or Nicole McDaniel-Smith, – 6-7347