Financial Aid

Withdrawal from Classes: Return to Title IV

Any student who withdraws or is expelled from all classes during the term, depending upon when this action is taken, may be refunded all or part of their tuition and fee charges. If the student is a financial aid recipient, the University of Michigan-Dearborn, as well as the student, may be required to return to the Federal government all or a portion of the aid that had been disbursed to the student and/or the student’s account.

TUITION REFUND POLICY

A student may discontinue all of his/her courses (for the term) by withdrawing from the term. Students withdrawing from the term will have their tuition assessed based on the University Tuition Refund Policy that stipulates the amount of tuition and fees that are refunded to a student who withdraws from all classes during the term.

Students withdrawing from the term will have their tuition and fees assessed depending upon when the student withdraws. The chart below will reflect the University’s fee assessment according to the following schedule:

TIME OF WITHDRAWAL

INSTITUTIONAL ASSESSMENT

Before the first day of classes and through the first two weeks of classes

Students who officially withdraw before classes start or during the first two weeks of class will not be assessed any tuition or fees.

Third through the sixth week of classes

If withdraws by the end of the fourth week of classes, he/she will be assessed 50% of tuition plus the non-refundable registration fee and all associated course fees. A grade of “W” will be recorded on the student’s academic record.

After the sixth week of classes

If withdraws after the eighth week of classes, he/she will be assessed 100% of tuition plus the non-refundable registration fee and all associated course fees. A grade of “W” will be recorded on the student’s academic record.
* Permission to withdraw after the last day of class would require the approval of the Academic Standards Committee of the school or college in which the student is enrolled.


RETURN TO TITLE IV (FEDERAL) FINANCIAL AID (R2T4)

If a student receiving Title IV funds completely withdraws from classes through 60% of the term, the University is required to determine how much of the financial aid was earned up to the time of withdrawal. Unearned Title IV funds must be returned by the university and/or the student to the federal government. This situation could result in the student owing aid funds to the university, the government, or both.

The federal formula requires a return of Title IV aid if the student received any federal financial assistance (except Federal Work-Study) and withdrew on or before completing 60% of the term. To determine the amount of aid the student has earned up to the time of withdrawal, divide the number of calendar days the student attended classes by the total number of calendar days in the term. Scheduled breaks of more than five days or more are excluded. The percentage derived is then multiplied by the total federal funds that were disbursed (either to the student’s account and/or to the student in the form of a refund) for the term. This calculation determines the amount of aid earned by the student which he/she may keep (for example, if the student attended 25% of the term, the student would have earned 25% of the aid disbursed). The unearned amount (total aid disbursed less the earned amount) must be returned to the federal government by the university or the student.

If it has been determined that a student has unofficially withdrawn, the Return to Title IV calculation will assume 50% completed—unless otherwise documented by the student.

SPECIAL ENROLLMENT REQUIREMENTS FOR FUNDS

Students receiving Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (FSEOG), or Federal Perkins Loan who drop or withdraw (officially or unofficially) will lose part or all of their funds until appropriate faculty confirm the last date of attendance or academic activity.  Reinstatement of part or all of these federal funds will be based on the cumulative response from faculty.

If the last date of attendance or academic activity is earlier than the official date of withdrawal, the former will be used as the date of withdrawal for purposes of the Return to Title IV (R2T4) calculation of eligibility.

ORDER OF RETURN OF TITLE IV FUNDS

Funds that are returned to the Federal government are used to reduce the outstanding balances in individual federal programs. Financial aid returned (by the university and/or the student or parent) must be allocated in the following order:

1. Federal Unsubsidized Direct Loan
2. Federal Subsidized Direct Loan
3. Federal Perkins Loan
4. Federal Direct PLUS (Parent) Loan
5. Federal Pell Grant
6. Academic Competitiveness Grant (ACG)
7. SMART Grant
8. Federal TEACH Grant
9. Federal Supplemental Educational Opportunity Grant (FSEOG)
10 Other Federal Loan or Grant Assistance

Once a student's earned financial aid eligibility has been determined, the Office of Financial Aid will notify each withdrawn student of any loss of eligibility.

    • Eligible Michigan Competitive Scholarship funds are calculated based on a formula provided by the Michigan Office of Scholarships and Grants.

    • University funds are applied only if there is a balance owed by the student to the university

    • Loans disbursed in excess of eligibility are due based on the terms and conditions outlined in the promissory note(s). Most Direct Loan borrowers will be required to enter repayment six months after withdrawal—unless they begin classes on a half-time basis (6 credits undergraduate/4 credits graduate) before the end of their six month grace period.

It is important to realize that a key component of satisfactory academic progress is course completion. A total withdrawal contributes no completed credits to an academic transcript. Students completing less than a minimum of 67% of all credits attempted at UM-Dearborn may lose financial aid eligibility.

Questions and concerns should be directed to the Office of Financial Aid at (313) 593-5300. The Office of Financial Aid encourages all students to meet their academic advisor and to take advantage of the resources offered in the Student Success Center.