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The University of Texas at Tyler -  Financial Aid Withdrawal Policy

Financial Aid

Enrollment Status and Withdrawing from the University

Effective July 1, 2011

Students who pre-register and decide not to attend must cancel their financial aid award and pre-registration prior to the first day of class to avoid tuition and fee charges.

Changes in enrollment for any term will result in a recalculation of eligibility, reduction or cancellation of financial aid award(s). Students are responsible for repaying the difference between the amount disbursed and the adjusted award amount based on the new enrollment status. Example 1: A student drops from full-time to half-time prior to the financial aid census date. Cost of attendance and award amounts are adjusted. Example 2: An evening English class is cancelled; the student is enrolled in 12 hours and does not register for an additional class prior to financial aid census. Enrollment stays at 9 hours which is three-quarter time and less than full-time enrollment. Cost of attendance and award amounts are adjusted. Example 3: A student enrolled half-time (6 hours) finds an on-line management course that is open. The 3 hour course is added on the first class day. Cost of attendance and award amounts are adjusted up to three-quarter time enrollment.

Withdrawals and Title IV Federal Funds

Title IV (federal) funds are awarded and may be disbursed to students under the assumption that students will attend school for the entire period for which the assistance is awarded. Federal regulations state that if a student withdraws on or before the 60% point within a semester/term, all unearned federal aid must be returned to the program. Students who receive federal aid at UT Tyler and completely withdraw will be re-evaluated for the earned and unearned portion of their award eligibility. The University will return all unearned federal loans and grants on behalf of the student. Federal financial aid includes the Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (SEOG), Federal TEACH Grant, Federal Direct Loan (subsidized and unsubsidized), and the Federal Direct Parent Loan for Undergraduate Students (PLUS). The student will receive notification by mail of the amount that is being returned to the federal program(s). Depending on the types and amounts of aid received, UT Tyler may return the required portion of the funds and the student may be required to repay a portion of the funds. The student may owe an outstanding balance to UT Tyler after we return funds required through the federal Return of Title IV Funds calculation. A financial hold will be placed on the student account for the outstanding balance. All student outstanding balances should be paid to the Cashiers Office in Student Business Services.

Financial aid recipients are encouraged to contact a financial aid counselor prior to withdrawal to determine how the withdrawal will affect their current financial aid package and future eligibility. The amount of Title IV aid earned is determined by multiplying the percentage of Title IV aid earned by the total of Title IV aid disbursed plus the Title IV aid that could have been disbursed to the student or on behalf of the student.

After withdrawal, required funds will be returned in the following order:

  • Unsubsidized Federal Stafford Loans
  • Subsidized Federal Stafford Loans
  • Federal PLUS Loans
  • Federal Pell Grants
  • Federal Supplemental Educational Opportunity Grants (SEOG)
  • TEACH Grants
  • Other federal, state, private, or institutional aid (ineligible if withdrawal occurs before census date)

At the end of each semester or term, students who receive grades of all “F” and those who cease attending classes without formal withdrawal will be considered to have earned a portion of their Title IV aid unless approved verification of class attendance beyond the 50% point is submitted to the Financial Aid Office. Letters will be mailed to notify these students of the earned portion and the unearned federal aid amount that is required to be returned through the federal Return of Title IV calculation. The student may owe an outstanding balance to UT Tyler after we return funds required through the federal Return of Title IV Funds calculation. A financial hold will be placed on the student account for the outstanding balance. All student outstanding balances should be paid to the Cashiers Office in Student Business Services.

Students attending during a semester that includes classes with flexible start and end dates (programs offered in modules, Long Summer session, Summer 1 session, and/or Summer 2 session) must remain enrolled for each payment period. If the student ceases enrollment during one module or session, a Return of Title IV calculation will be performed unless the student enrolls and confirms attendance in a future course offering that will begin less than 45 calendars after enrollment ceased in a previous course.  

Students who received student loans and withdraw below ½ time:

  1. Students who received student loans must complete exit counseling when they leave UT Tyler.
  2. Students who withdraw will enter the loan “grace period” or “repayment” status. Student may refer to the exit counseling material at www.studentloans.gov or contact the loan servicer to determine when repayment will begin.
  3. Future loan disbursements for the loan period will be cancelled. Federal Direct, Unsubsidized Federal Direct, and Federal Direct PLUS Loans are usually certified for an academic year including Fall and Spring semesters resulting in more than one disbursement. If a student withdraws prior to receiving all loan disbursements, future disbursements will be cancelled. If the student plans to return to UT Tyler during the same award year, a new loan will have to be certified for the loan period. Forms Library/Financial Aid - Reinstatement Request.

NOTE: Returning unearned Title IV funds due to a complete withdrawal does not excuse the student’s obligation to meet satisfactory academic progress requirements. Students who do not meet Satisfactory Academic Progress requirements are not eligible to receive financial aid in future semesters. Students may request an appeal of extenuating circumstances or reinstate eligibility based on the Financial Aid Satisfactory Academic Progress Policy.

After the 60% point of enrollment for each semester, a student is considered to have earned 100% of the Title IV funds awarded and disbursed. If a withdrawal takes place after this time, the Return of Title IV calculation will be performed and a copy maintained in the student’s file for reference. The calculation may also be used to determine whether the student is eligible for a post-withdrawal disbursement.

EXAMPLE

Return of Title IV calculation: John was enrolled full-time for Fall. He received Pell Grant of $1150 and Federal Direct Stafford Loan of $2737. He withdrew from all of his classes on September 8. This left his Percentage of Title IV Aid Earned at 15.9%. Based on his institutional charges (tuition & fees) of $3510 multiplied by his unearned percentage (100% - 15.9% = 84.1%), the amount required to be returned is $2951.91. This means his Federal Direct Stafford Loan must be cancelled and returned ($2737) and the Pell Grant reduced to $935.09 (returning $214.91).

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