Withdrawals or Failing Classes and Receiving Federal Financial Aid
Federal regulations require schools to determine the earned and unearned portions of Federal aid as of the date the student ceased attendance based on the amount of time the student spent in attending classes during each semester.
Up through the 60% point in each semester, a pro-rata schedule is used to determine the amount of Federal aid the student has earned at the time of withdrawal. After the 60% point in the semester, a student has earned 100% of the Federal aid awarded.
For a student who withdraws after the 60% point-in-time, there is no unearned aid. However, a school must still determine the student’s eligibility for a Post-withdrawal disbursement. Georgia Southwestern ‘GSW’ must comply with refund policies required by a state or other outside agencies. Although an institutional, state, or agency refund policy will determine the charges a student will owe after withdrawing, those policies will not affect the amount of Federal Aid the student has earned.
Federal aid is awarded to a student under the assumption that the student will attend school for the entire semester for which the assistance is awarded. When a student withdraws, the student may no longer be eligible for the full amount of Federal aid that the student was originally scheduled to receive.
If a recipient of Federal grant or loan funds withdraws (officially or unofficially) from a school after beginning attendance, the amount of Federal grant or loan assistance earned by the student must be determined. If the amount disbursed to the student is greater than the amount the student earned, unearned funds must be returned. If the amount disbursed to the student is less than the amount the student earned, and for which the student is otherwise eligible, he or she is eligible to receive a Post-withdrawal disbursement of the earned aid that was not received.
GSW has a procedure for determining whether a Federal recipient who began attendance during a semester completed the semester or should be treated as a withdrawal. If a student earns a passing grade in one or more of his or her classes in a semester GSW presumes that the student completed the course and thus completed the semester. If a student begins attendance, does not officially withdraw, but fails to earn a passing grade in at least one course offered over an entire semester, GSW for Federal purposes must assume that the student has unofficially withdrawn. In such case, GSW may rely on the Instructors reported last date of attendance during the specific semester. If one instructor reports that the student attended through the end of the semester, then the student is not a withdrawal.