Impact of Withdrawal

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Impact of Withdrawal

Refund Policy


Refund of Medical School Tuition and Fees

Students who do not receive Title IV financial aid undergo the University Refund process. The schedule for allocation of tuition and fee amounts charged and amounts credited is as follows:

School Week

% Charged

% Credited

1

20

80

2

20

80

3

30

70

4

40

60

5

50

50

6

60

40

7

100

0

   

Tuition and Fees: In the event a student withdraws from the School of Medicine, tuition and fees will be charged on a percentage basis based on the school week within which the student withdraws. The effective date of withdrawal is determined by the Dean of Student Affairs, and is recorded on the official withdrawal form, which the student must complete as part of the withdrawal process.

Any refunds due to the student because of withdrawal will first be offset against any other amounts owed to the University.

The University is authorized to reduce the refund to pay other charges owed to the University by the student, such as Bookstore or telecommunications bills, parking fines, outstanding emergency loans, etc.

Students who receive Title IV financial aid are refunded tuition and fees in accordance with federally-mandated Return of Title IV Aid Policy. 
 

The Medical School Financial Aid Office is required by federal statute to recalculate federal financial aid eligibility for students who withdraw, drop out or are dismissed prior to completing 60% of a semester. The federal Title IV financial aid programs must be recalculated in these situations. Title IV funds are Perkins Loan, Stafford Subsidized and Stafford Unsubsidized Loans.

Recalculation is based on the percent of earned aid using the following Federal Return of Title IV funds formula:

Percent of aid earned = the number of days completed up to the withdrawal date, divided by the total days in the semester. (Any break of five days or more is not counted as part of the days in the semester.)

Funds are returned to the appropriate federal program based on the percent of unearned aid using the following formula:

Aid to be returned = (100% minus the percent earned) multiplied by the amount of aid disbursed toward institutional charges.

The University is required to return a portion of the funds and the student is required to return a portion of the funds. The portion the student is required to return may be repaid to the lender according to the terms of the Promissory Note.  Title IV funds returned by the University may result in the student borrower owing a debit balance to the University. If that is the case, the student should contact Student Financial Services to make arrangements to pay the outstanding balance. 

 The recalculation process begins as follows:

   the number of days attended UVA
 divided by  the number of days in the full semester
 equals  the percent of the semester completed

If a student left the University the 40th day of a 106-day semester, the student would have completed 37.7% of the semester, since 40 divided by 106 equals 37.73584%.  Since this student attended less than 60% of the semester, the recalculation of Title IV financial aid eligibility is mandatory.  The amount of Title IV aid earned would be 37.7% of the total amount awarded.

When a student has received more financial aid funds than the amount earned, the unearned portion of the financial aid must be returned by the school (UVA), by the student or both.

Determining the Amount of Title IV Aid to be returned by UVA:

The school must return the lesser of A) or B):

                A) the amount of Title IV funds the student has not earned

If this student had borrowed $38,500 in Federal Loans for the academic year, one-half or $19,250 would have been disbursed to the student for the semester, but only 37.7% of the $19,250 ($7,257) would have been earned.  Since the aid disbursed ($19,250) was greater than the aid earned ($7,257) by $11,993, that amount ($11,993) of Title IV aid was unearned.

                B) the amount of school charges the student incurred during the number of days attended multiplied by the percentage to Title IV funds that was not earned.

The formula is:

   the tuition and fees for the entire semester
 multiplied by  the percentage of Title IV aid unearned
 equals       the amount of Title IV aid to be returned by UVA

 

In our example, the semester’s tuition charge was $18,500 (1/2 of the $37,000 academic year charge), and the fees equaled $115 (1/2 of $230).  The percentage of Unearned Title IV aid is 62.3 (100% – 37.7%).  Therefore $18,615 x 62.3 = $11,597. 

The lesser of the two results, A($11,993) and B($11,597), is B - so the amount of Title IV Aid to be returned by the school is $11,597.

Determining the Amount of Title IV Aid to be returned by the student:

The formula is:

   the total amount of Title IV Aid to be returned 
 minus       the amount due from the school
 equals      the amount to be returned by the student

Since $11,993 exceeds $11,597 by $396, the student must return $396.

Loan Repayment

Six months after leaving the University, the student’s Federal Subsidized and Unsubsidized Loans will enter repayment.  After nine months, Federal Perkins Loans will enter repayment.

Return of UVA SOM (Institutional) Funds

For students using SOM aid who cease to attend, withdraw or are dismissed

Students who have received UVA SOM scholarship and/or loan funds will be expected to return the unearned portion of those awards.  The earned/unearned portions of institutional aid will be determined by using the same procedures and formulas shown above.