Withdrawal and Return of Funds
How a Withdrawal Affects Your Financial Aid
Financial aid is awarded under the assumption that a student will complete their courses for the entire semester. Instructors are required to report student’s attendance each semester. When a student ceases attendance (officially &/or unofficially), they may no longer be eligible for the full amount of funds originally awarded. Under Federal regulations, Bergen Community College is required to calculate the amount of funds earned during the semester the student withdrew based on their last date of attendance.
How Your Withdrawal Eligibility Is Determined
The formula used to determine the financial aid a student is eligible for after a withdrawal is:
Earned % (financial aid eligibility after withdrawal) = Number of Days Completed (using last date of attendance) ÷ Total Days in Semester
Unearned % (financial aid to be returned) = 100% (financial aid originally awarded) – Earned % (financial aid eligibility after withdrawal)
A student that officially or unofficially withdraws will be required to repay their unearned financial aid to the U.S. Department of Education.
Order of Return of Financial Aid
Under Federal regulations, financial aid will be returned to the U.S. Department of Education within 45 days of the student’s withdrawal in the following order:
- Federal Direct Unsubsidized Loan
- Federal Direct Subsidized Loan
- Federal Direct Parent Loan for Undergraduate Students (PLUS)
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant
Post-Withdrawal Disbursement of Federal Direct Loan
If a student withdraws before their Federal Direct or Parent Loan are posted to their account, Bergen Community College must obtain permission before it can be disbursed. The borrower will be notified within 30 days of the withdrawal. The student (or parent) has 14 days from the date of notification to respond and authorize payment. If the student (or parent) does not respond within the appropriate time, the loan will be cancelled.
The student and the school are both responsible for the return of unearned financial aid funds. Bergen Community College will return funds on the student’s behalf to the appropriate Federal programs. Subsequently, the student will be responsible for any outstanding balance owed to the college as a result of the return of funds. The student will receive e-mails reflecting the adjustment to the student’s financial aid eligibility and the updated student account balance.