When a student who has received Federal financial assistance (Pell Grants, FSEOG Grants, Federal Perkins Loans, Federal Direct Stafford Loans, or Federal Direct Parent Loans for Undergraduates) fully withdraws from the University, the unearned portion of the aid must be returned to the program. The unearned portion is calculated up to the first 60% of the enrollment period. The calculations are made on a pro-rata basis, based upon the total enrollment period. The withdrawal date used in the return calculation of a students federal financial aid is the actual date indicated on the official drop form as provided by the University Registrars Office.
Institutions are required to determine the percentage of Title IV aid earned by the student and to return the unearned portion to the appropriate aid programs. Regulations require schools to perform calculations within 30 days from the date the school determines a students complete withdrawal. The school must return the funds within 45 days of the calculation. The R2T4 calculation process and return of funds is completed by the Student Financial Services Office (SFS).
The Federal government has set the order in which unearned aid must be returned to the programs. Students should note that the requirement to return the unearned portion of Federal financial assistance might leave them owing a balance due to Cumberland University.
The order of distribution for refunds is as follows:
William D. Ford Direct Unsubsidized Federal Stafford Loans|
William D. Ford Direct Subsidized Federal Stafford Loans|
William D. Ford Federal Direct PLUS Loans|
Federal Supplemental Educational Opportunity Grants (FSEOG)|
State, private or institutional aid|