Western State College of Colorado

REPAYMENT OF UNEARNED FEDERAL FINANCIAL AID

If you withdraw from school prior to completing 60% of a term, you may be required to repay a portion of the federal financial aid that you received for that term. Federal aid includes; Federal Stafford Loan, Federal Perkins Loan, Federal PLUS Loan, Federal Pell Grant and Federal Supplemental Educational Opportunity Grant.

We recommend that you try to complete one class, if possible, to avoid any financial hardship imposed by this new regulation. However, if you have to withdraw, it is Important that you understand your financial obligation.

How much will I have to repay when I completely withdraw from school?

The amount of repayment depends upon the number of days that you attend school in the term, the type of financial aid that you received, and whether or not Western refunds the amount of your tuition and fees. The portion of the term that you do not attend represents the portion of aid that is determined to be unearned.

If you are receiving loans only and Western refunds the full amount of your tuition and fees, you will only be required to repay your loans in accordance with the regular repayment schedule. All other students who withdraw prior to completing 60% of a term must repay a portion of their federal financial aid.

When will I have earned 100% of my federal financial aid?

If you initiate withdrawal procedures after completing 60% of the term, you will have earned 100% of your federal financial aid for that term and no repayment is required.

When does Western refund tuition and fees?

If you withdraw from Western prior to the drop/add deadline for a term, then a full tuition refund will automatically be processed for you.

How is the amount of the federal aid repayment calculated?

1. Earned federal financial aid is prorated according to the percentage of the Semester completed. The amount of unearned federal aid is the total amount of federal aid less the portion of earned federal aid.

2. The amount of unearned federal aid is divided into two categories: (1) Unearned aid attributed to school-charges (tuition and fees) and (2) unearned aid attributed to all other expenses (non-school expenses). Regardless of the order and method in which tuition and fees are paid. Unearned federal aid is attributed toward school charges first, then toward non-school expenses.

   1. Unearned Federal Aid Attributed to School Charges:

      Western is required to return all unearned federal aid attributed to school charges. This means that a portion of your tuition and fees is no longer covered by financial aid, and you as the student are liable for paying the balance of your school charges. All unearned federal aid attributed to school charges are subject to Immediate repayment by you unless you are eligible for a tuition and fee refund.

   2. Unearned Federal Aid Attributed to Non-School Expenses:

      For unearned aid allocated to the federal loan programs, you are not required to make immediate repayment. The regulation allows repayment to be made in accordance with the regular repayment schedule of the loan. A federal grant fund repayment is limited to 50% of the initial unearned aid allocation

3. Unearned aid is allocated and/or returned in the following order: Unsubsidized Federal Stafford Loan; Subsidized Federal Stafford Loan; Federal Perkins Loan; Federal PLUS Loan; Federal Pell Grant; Federal Supplement Grant (FSEOG).