Withdrawals & Refunds

Impact of Withdrawal on Students Receiving Federal Financial Aid

In addition to the school’s refund policy, withdrawal from all classes in an enrollment period, student recipients of federal Title IV aid (Federal Pell Grants), Federal Perkins Loans, Federal Direct Loans, Federal Supplemental Educational Opportunity Grants, and Alabama State Grants) are subject to additional rules and regulations, which may result in cancellation or reduction of federal Title IV aid upon withdrawal from classes in an enrollment period.

Although Federal aid is normally disbursed at the beginning of an enrollment period, this aid is “earned” as the student attends classes throughout the period. The difference in awarded and “earned” aid at the point of withdrawal may result in the need to return “unearned” aid.

If a student completely withdraws during the first 60% of a semester, aid will be returned to each source of aid/scholarship received by the student, up to the total amount received from each source, in the following order:

  • Federal Direct Loan(s), Unsubsidized
  • Federal Direct Loan(s), Subsidized
  • Federal Pell Grant
  • Federal SEOG
  • Other aid or scholarships

Any remaining credit, after these cancellations have occurred, will be returned to the student (net of any charges remaining on the student account).

A federal aid recipient who withdraws from an enrollment period is subject to possible repayment of federal aid disbursed to the student (after payment of institutional charges) for living expenses and other educational needs. If the aid disbursed is greater than the “earned” portion of the aid at the point of withdrawal, it may be necessary for the student to repay all or a portion of the federal aid received.

Each student who owes a repayment will be notified in writing by the Jefferson State Financial Aid Office of the requirement to repay Title IV funds. Failure to repay funds will result in the termination of eligibility for federal financial aid at any institution. If a student completely withdraws after 60 % of the semester is complete, the student most likely will not owe a repayment.

We highly recommend all students contact the Financial Aid Office before withdrawing.