Refunds and the “Return of Title IV Funds” Policy
University of Maryland Eastern Shore
If a student withdraws or is expelled from UMES, then the school or the student may be required to return some of the federal funds awarded to the student. The student may also be eligible for a refund of a portion of tuition, fees, and room and board paid to UMES for the semester. If the student received financial assistance from outside of the student’s family, then a portion of the refund will be returned to the grant, scholarship, or loan source from which the assistance was received. If a student will be withdrawing, then the student should visit the Office of the Registrar and complete a “Notification of Withdrawal” form to begin the withdrawal process. This procedure will enable UMES to refund the maximum possible institutional charges. The withdrawal will not be complete until the student has returned the Notification of Withdrawal form (with all appropriate signatures) to the Office of the Registrar. UMES’ refund policy exists for calculating the refund of institutional charges. The federal “Return of Title IV Funds” formula dictates the amount of Federal Title IV aid that must be returned to the federal government by the school and the student. The federal formula is applicable to a student receiving a federal pell grant or federal aid other than Federal Work study, if that student withdraws on or before the 60% point in time in the semester. The student may also receive a refund of institutional charges through UMES’ refund policy (see above). Room and/or Board charges will be pro-rated according to the policy of the Office of Residence Life.
The federal formula requires a return of Title IV aid if the student received federal assistance in the form of a Pell Grant, Supplemental Educational Opportunity Grant (SEOG), Federal Direct Student Loan or PLUS Loan and withdrew on or before completing 60% of the semester. The percentage of Title IV aid to be returned is equal to the number of calendar days remaining in the semester divided by the number of calendar days in the semester. Scheduled breaks of more than four consecutive days are excluded. If any funds are to be returned after the return of Title IV aid, they will be used to repay UMES funds, state funds, other private sources, and the student in proportion to the amount received from each non-federal source, as long as there is no unpaid balance at the time of withdrawal. If there is an unpaid balance, then all aid sources will be repaid before any funds are returned to the student.
NOTE: If funds are released to a student because of a credit balance on a student’s account, then the student may be required to repay some of the federal grants if the student withdraws. A work sheet used to determine the amount of refund or Return of Title IV Aid is available upon request.