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Financial Aid

Refunds and Repayment Policy

When a student becomes ineligible for aid or withdraws, Federal, State, and Institutional Financial Aid may be returned to the financial aid program from which it originated. In the event of a withdrawal after census date, the aid that is returned by UCCS to the aid program will be billed to the UCCS student 's account. Students will be held responsible for any new balance due in reference to the return of aid. Payment will be due on published due dates for that semester. See the Student Financial Services Office for collection policies.

Policy for students who withdraw while receiving Title IV (federal) funds

The University of Colorado at Colorado Springs' refund policy is based on the policy requirements stated in federal regulations (34 CFR 668.22), and is titled Return of Title IV Funds.

When a student who has received federal funds officially or unofficially (receives F's in all classes) withdraws from school within 60% of the term for which aid is disbursed, the student is ineligible for the funds received that are not used to meet costs of tuition and fees. Therefore, the Return of Title IV Funds calculation, a formula prescribed in the federal regulations, is performed. The results of this calculation may, and usually does, require the school and the student to repay the unused portion to financial aid accounts. The order of the unused aid returned to the federal accounts by the school and the student is listed below:

  • Unsubsidized Federal Stafford Loan*
  • Subsidized Federal Stafford Loan*
  • Perkins Loan*
  • PLUS Loan*
  • Pell Grant **
  • Academic Competitiveness Grant **
  • National SMART Grant **
  • FSEOG **
  • Other Title IV Programs (Does not include FWS, LEAP, and SLEAP) **

* The student/parent portion of the loan is to be repaid in accordance with terms of the Promissory Note.

** The student portion owed is reduced by a grant protection equal to 50% of the federal share of the grant.

Example:
Student attends 50% (59 days) of term (117 days/100%) and withdraws.
The school is entitled to 50% of tuition and fees. the student's unearned tuition and fees (50%) must be repaid to financial aid accounts.
Tuition and fees for full term = $1,800
50% of $1,800 = $900 to be returned to the financial aid accounts.
This school repays the financial aid accounts the amount of unearned aid and bills the student.

Policy for students who withdraw while receiving state and/or institutional funds only

If a student receives no Title IV (federal) funds, but receives state and/or institutional funds, the regular University refund policy will be enforced. Because the University gives a refund up to 60% for withdrawals within the period stated in the Course Schedule, up to 60% of tuition and fees will be returned to the state or institutional accounts in that order. Financial aid given to meet living expenses will be returned to the financial accounts in the amount of the percent that was unused.

Policy for students who withdraw while receiving federal and state or institutional funds

If a student received both Title IV (federal) funds and state or institutional funds, and withdraws during the University's refund period, both the above calculation and the Title IV refund calculation would be performed. The amount of the unearned aid would be repaid to the federal accounts first. Remaining amounts would be applied to state and/or institutional accounts.

If it cannot be documented that the student attended any class during the term for which the financial aid was disbursed, or withdraws during the 100% University refund period, 100% of Title IV, state, and institutional aid awarded and received will be returned to the financial aid accounts. The student will be billed 100% of the disbursement minus the tuition and fees (and room and board, if billed by the University). For Borrowers of PLUS loans with students who withdraw or stop attending during the 100% refund period, the lender will demand immediate repayment of the full outstanding balance of the loan.

Financial Aid recipients who do not officially withdraw and receive "F's" for the term will have enrollment verification forms sent to their instructors. If the last date of attendance provided by the instructor is within 60% of the enrollment period, that date will be used to calculate the amount the student will have to return to the financial aid accounts, using the formula(s) described above.

Examples

A student completes 40 days of a 120-day semester. He has received a total of $2,500 in federal financial aid as follows: $1,650 Federal Pell Grant, $850 subsidized Federal Stafford Loan. His total school charges are $1,200.

  1. Percent of earned federal aid = 40/120 = 33%
  2. Percent of unearned federal aid = 100% - 33% = 67%
  3. Total amount of unearned federal aid = 67% X $2,500 = $1,675
  4. Amount of unearned federal aid attributed to school charges = 67% X $1,200 = $804
  5. The school must return $804 to the student's subsidized Federal Stafford Loan
  6. The remaining amount of the student's subsidized Federal Stafford Loan = $850 - $804 = $46
  7. Amount of unearned federal aid attributed to non-school charges = $1,675 - $804 = $871
  8. $46 is allocated to subsidized Federal Stafford Loan. This is what is remaining after the school returned the unearned aid attributed to school charges. This is returned in accordance with the terms of the promissory note.
  9. $871 - $46 = $825 is allocated to the Federal Pell Grant. Federal regulation only requires that the student pay 50 percent of this amount. This means that the student must pay $412.50 back to the Federal Pell program. The school will return these funds and bill the student.
  10. The student owes $804 for school charges and $412.50 for non-school charges for a total of $1,216.50.

A student withdraws 20 days after term (120 days) begins. The student has received a total of $6742 in federal financial aid as follows: $1650 Federal Pell Grant, $2667 subsidized Federal Stafford Loan, $2425 unsubsidized Federal Stafford Loan. Total school charges are $1725.

  1. Percent of earned federal aid = 20/120 = 17%
  2. Amount of earned federal aid: 17% X $6742 = $1146.14
  3. Percent and total amount of unearned federal aid: 83% (100% - 17%) X $6742 = $5595.86
  4. Amount of school charges X percent of unearned federal aid: 83% $1725 = $1431.73
  5. $1431.73 unearned tuition would be returned to the lender to apply to Unsubsidized Loan.*
  6. $503.86 Pell would be repaid to the Federal Pell amount (X 50% = $251.93)*
  7. $993.25 student would be responsible for repaying this amount of Unsubsidized Loan to lender **
  8. 2667.00 student would be responsible for repaying this amount of Subsidized Loan to lender **
  9. $5595.94 Total amount

Notes:

  • * If the withdrawal is within the University's refund period, a tuition refund would be applied to this amount. Any balance would be charged to the student. If not within the University's refund period, these amounts would be charges to the student.
  • **The student would repay Stafford Loans according to agreement with lender.
  • Per federal mandate, only 50% of the unearned Pell amount would be required to be repaid: $251.93.