Financial Aid Return Policies
Return of Financial Aid
Students who stop attending classes during the semester may not be eligible for some or all of the financial aid received for that semester. Funds for which students are no longer eligible must be returned to the appropriate program fund. Students considering withdrawing or taking a leave of absence during the semester are strongly encouraged to visit the Financial Aid Office and the Student Accounts Office to determine the possible changes to their charges and financial aid.
Return of Title IV Funds
The Financial Aid Office is required by federal statute to recalculate federal financial aid eligibility for students who withdraw, drop out, are dismissed or suspended, or take a leave of absence prior to completing 60% of a payment period or term. The federal Title IV financial aid programs must be recalculated in these situations.
If a student leaves McDaniel prior to completing 60% of a payment period or term, the financial aid office recalculates eligibility for Title IV funds. Recalculation is based on the percentage of earned aid using the following Federal Return of Title IV funds formula:
Percentage of term completed = the number of days completed up to the withdrawal date divided by the total days in the term. (Any break of five days or more is not counted as part of the days in the term.) This percentage is also the percentage of earned aid.
Funds are returned to the appropriate federal program based on the percentage of unearned aid using the following formula:
Aid to be returned = (100% of the aid that could be disbursed minus the percentage of earned aid) multiplied by the total amount of aid that could have been disbursed during the payment period or term.
If a student earned less aid than was disbursed, the College would be required to return a portion of the funds and the student would be required to return a portion of the funds. Keep in mind that when Title IV funds are returned, the student may owe a debit balance to the College.
If a student earned more aid than was disbursed to him/her, the institution would owe the student a post-withdrawal disbursement which must be paid within 120 days of the student's withdrawal.
The College must return the amount of Title IV funds for which it is responsible no later than 30 days after the date of the determination of the date of the student’s withdrawal.
Refunds are allocated in the following order:
Unsubsidized Federal Stafford Loan
Subsidized Federal Stafford Loans
Federal Perkins Loans
Federal Parent (PLUS) Loans
Federal Pell Grants
Academic Competitions Grant
National Smart Grant
Federal Supplemental Opportunity Grants
Other assistance under this Title for which a Return of funds is required (e.g., LEAP)
The following return policy covers all McDaniel College funds, both need- and non-need-based. The percentages that must be returned to the programs mirror the Tuition Refund Policy as follows:
|Before the 1st day of classes||100% returned|
|Through the 1st week||80% returned|
|After the 1st week and through the 2nd week||60% returned|
|After the 2nd week through the 3rd week||40% returned|
|After the 3rd week through the 4th week||20% returned|
|After the 4th week||0% returned|
The College often credits students’ accounts with state grant and scholarship funds before the College receives those funds from the state. Students withdrawing before McDaniel College has certified the semester enrollment to the state are not eligible to retain state grants and scholarships. Students withdrawing after the College has certified the semester enrollment remain eligible for state aid for the semester.
Exceptions may be made at the discretion of the Bursar and Financial Aid offices. Examples of revised financial aid awards of withdrawing students are available in the Financial Aid Office.