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Financial Aid

Return to Title IV Funds and Withdrawal Policy

Pace University is required by the Higher Education Act to recalculate the eligibility for Federal Title IV financial aid for students who cease to be enrolled (100% withdrawal) prior to the end of a period of enrollment; whether they withdraw, drop out, are dissmissed, or take a leave of absence.

  • These requirements do not apply to a student who does not actually begin attendance or when a student has a change in enrollment.

Federal regulations specify how Pace University must calculate the amount of Title IV program assistance that students can earn if they withdraw from Pace University.

When a student withdraws during the semester, the amount of the Title IV program assistance that a student has earned up to the point of withdrawal is determined on a pro-rata basis.  For example, if a student completes 30% of the period of enrollment, the student will earn 30% of the assistance that they were originally scheduled to receive.  Once the student has completed more than 60% of the period of enrollment, the student has earned 100% of the Title IV funds they were scheduled to receive during the period.

The Title IV programs covered by this law and are available at Pace University are listed below in the order in which the law specifices they must be returned:

  • Direct Unsubsidized Stafford loans
  • Direct Subsidized Stafford loans
  • Direct PLUS loans
  • Federal Pell Grants for which a return of funds is required.
  • FSEOG (Federal Supplemental Educational Opportunity Grant) for which a return of funds is required.
  • Iraq and Afghanistan Service Grant for which a return is required.
     

Post-Withdrawal Disbursement Policy


There are some Title IV funds that a student may be scheduled to receive that must be cancelled once the student withdraws because of other eligibility requirements. For example, the 2nd disbursement of a loan may not be disbursed after the student withdraws below half-time (6 credits).

If the excess Title IV funds were disbursed to the student's account and must be returned according to the required Return to Title IV Funds calculation required by law, the Financial Aid office return a portion of the excess equal to the lesser of:

  • The student’s institutional charges (tuition, fees, room and board) multiplied by the unearned percentage of the funds, or
  • The entire amount of excess funds.

The Financial Aid office must return this amount even if the student (or parent) received a refund of some or all of these funds before the student withdrew.

If the University is not required to return all of the excess funds, the student (or parent for PLUS loans) is required to return the remaining amount. Any loan funds that must be returned, may be repaid in accordance with the terms of the promissory note. This means that the student (or parent) would not have to do anything special except ensure that required loan payments are made on time. Any amount of unearned grant funds that must be returned would be called an overpayment. The maximum amount of a grant overpayment that the student would have to repay is half of the grant funds the received or was scheduled to receive; but only if the overpayment is more than $50. Students who owe overpayments will be informed by the Financial Aid office.
 

Withdrawing from Classes


Students should note that the requirements for the treatment of Title IV program funds when a student withdraws are separate from the University’s Refund Policy and from policies that apply to institutional and New York state financial aid programs. Therefore, the student may still owe funds to the school to cover unpaid institutional charges. In addition, reductions in Title IV aid on the student’s account that are required by the Return to Title IV Funds calculation may have to be repaid to the University.

Learn more about Pace University’s Tuition Cancellation and Refund & Repayment Policy (covering other types of financial aid and partial withdrawals).

Financial Aid recipients who are considering withdrawing from a semester are strongly encouraged to discuss their situation with their advisor to ensure that they are making the best decision for themselves academically. Such students are also encouraged to discuss their plans with a Financial Aid counselor to ensure that they understand the impact of withdrawing on their financial aid. Students who are considering withdrawing and who have borrowed federal Stafford and/or PLUS loans are encouraged to review the Exit Counseling Guide for Federal Student Loan Borrowers (PDF).