What Happens to My Financial Aid if I Withdraw from the University?
If you officially withdraw from the University, you are still responsible for the repayment of any financial aid you may have received and the return of aid that was disbursed for the semester in which you withdraw. There are strict rules regarding the refund and repayment of financial aid.
Return of Title IV Funds Formula
Two formulas guide the return of financial aid - the California University of Pennsylvania Refund Policy and the federal Return of Title IV Aid formula.
The federal formula is applicable to any student receiving federal aid who withdraws from the University during the first 60% of a semester. These students will have their federal financial aid (Pell Grants, Supplemental Education Opportunity Grants, Perkins Loans, Federal Stafford Loans and Plus Loans) adjusted based on the percent of the semester completed before the withdrawal. In essence, students will be entitled to retain the same percent of the federal financial aid received as the percent of the semester completed. This percent is calculated by dividing the number of days in the semester (excluding breaks of five days or longer) into the number of days completed prior to the withdrawal (excluding breaks of five days or longer). There will be no adjustment to federal financial aid after the completion of at least 60% of the semester. Students will be responsible for 100% of the federal aid they were granted.
If any refund remains after the required return of Title IV aid, the refund will be used to repay California University of Pennsylvania funds, state grant funds, other private sources and the student in proportion to the amount paid by each non-federal source, as long as there was no unpaid balance due at the time of withdrawal. If there is an unpaid balance, then all aid sources will be repaid before any refund is paid to the student.
What Happens to Financial Aid That I Am Not Eligible to Receive when I Withdraw?
California University of Pennsylvania must return the unused portion of your federal Title IV federal aid to the programs from which you received aid in the following order:
- Unsubsidized Stafford Loan
- Subsidized Stafford Loan
- Perkins Loans
- Federal PLUS Loans
- Federal Pell Grants
- Federal ACG and National SMART Grants
- Federal SEOG
You are responsible for returning the difference between the amount of unearned aid and the amount returned by California University of Pennsylvania to appropriate federal aid programs.
Will I Owe Any Money After I Withdraw from Cal U?
Yes. In most situations, a student who withdraws during the first 60% of a semester will owe a balance to the University. The amount of the balance will depend on the charges the student incurred and amount of financial aid earned at the time of the student's withdrawal from the University. The reason is that the new federal formula does not adjust federal aid at the same percentage rate as University fees are adjusted. For a schedule of University fees and adjustments, click here.
In some cases, a student may receive a refund of financial aid before withdrawing from the University. In this case, he/she will be notified by the Bursar's Office and will be given 30 days to repay the funds to the University.
When Will I Know if I Owe Money to Cal U?
Approximately two weeks after the Financial Aid Office has made the necessary adjustments to your financial aid awards, the Bursar's Office will send you a billing statement for the balance owed to the University. A "hold" will be placed on your records, thereby preventing you from registering for subsequent semesters at the University until the balance on your account is paid in full.