Students who officially withdraw from MSOE or stop attending all courses prior to the end of the academic term may be required to return all or a portion of their financial aid. Information on how the amount of financial aid returned is listed below. Students needing to withdraw from all courses are encouraged to speak with a financial aid counselor before withdrawing to determine how it may affect their financial aid.

To officially withdraw from MSOE, students to submit an Official Withdrawal Form to the MSOE Registrar’s Office. The date the Official Withdrawal Form is submitted is the official withdrawal date. 

If a recipient of Title IV aid stops attending all classes without notifying MSOE, the Financial Aid Office is required to determine the student’s last date of academically related activity to calculate whether a portion of the student’s federal financial aid must be returned to the federal government. The Financial Aid Office will contact the student’s professor(s) to determine the last date a student completed any academically related activity. If the professor(s) is unable to provide a date, the Financial Aid Office will be required to use the midpoint of the term as the withdrawal date. 

Return of Institutional Aid Policy:

If a recipient of MSOE scholarships or grants officially withdraws before 4:30 p.m. Friday of Week Five, MSOE will calculate the amount of institutional aid the student earned and return the unearned aid back to the university. The amount of aid earned is determined by the following schedule:

• Week One: 0% of Institutional Funds Earned
• Week Two: 20% of Institutional Funds Earned
• Week Three: 40% of Institutional Funds Earned
• Week Four: 60% of Institutional Funds Earned
• Week Five: 80% of Institutional Funds Earned
• Week Six and Beyond: 100% of Institutional Funds Earned

Return To Title IV Policy (Federal Aid)

Federal Regulation 34 CFR 668.22 specifies how a school must determine the amount of Title IV program assistance you earn if you withdraw from school. The Title IV programs include: Federal Pell Grants, Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Federal Supplemental Educational Opportunity Grants (FSEOG).

Though financial Aid is posted to a student's account at the beginning of each term, students earn the funds as they complete the term. Students who fully withdraw during the term may have only earned a portion of their Title IV Aid. The amount of aid earned is determined on a proportional basis. For example, if a student completed 30% of the term, they earned 30% of the aid. If a student received more aid than earned, the excess funds must be returned by the school. Once a student has completed more than 60% of the term, they have earned all their financial aid.

Steps of Return to Title IV:
The “Return to Title IV” calculation involves several steps. Below is the pertinent information involved in the calculation. See above for notes on calculating institutional aid.

1. The school determines the Title IV financial aid that has been disbursed to the account versus the amount of Title IV financial aid that could have been disbursed to the account. 
2. The school determines the amount of time attended versus the total days in the term. The calculation is represented as a percentage of aid the student has earned.
3.  The school multiplies the percentage of aid earned by the total amount of disbursed aid and aid that could have disbursed. This is the amount of aid the student has earned.
4.  The school takes the amount of aid the student has earned and subtracts it from the total aid disbursed for the student. This is the amount of aid the student has not earned.
5. Any funds not earned will be returned no later than 45 days from the determination of a student’s withdrawal in the in the following order:
   1. Federal Unsubsidized Direct Loan
   2. Federal Subsidized Direct Loan
   3. Federal Direct PLUS Loan (parent or graduate)
   4. Federal Pell Grant
   5. Federal Supplemental Educational Opportunity Grant
6. If a student withdraws before completing 60% of the term, a bill will be mailed to the student for any balance due to the return of financial aid funds.

Post Withdrawal Disbursements:
A student who received less federal financial aid than they earned based on the calculation above may be eligible to receive a post- withdrawal disbursement. The MSOE Financial Aid Office will inform that student in writing that they are eligible for that disbursement prior to making any post-withdrawal disbursement. The student will then have 14 days from the date of the letter to confirm that they would like to accept all or a portion of the funds available. Federal loans that were awarded and accepted by the student but not originated with the Department of Education are not eligible for a post-withdrawal disbursement.

Return of State Funds Policy:

If a recipient of state aid officially withdraws from all classes before Week Six of the academic term and has a credit balance after federal aid calculations are completed, MSOE is required to calculate what portion of the student's state financial aid must be returned to the state. The amount of state aid that is returned is determined by the percentage of the term completed.

If a student does not have a credit balance after federal aid calculations are completed, then no state aid will be returned. If a student withdraws from all classes after Week Five of the term, no state aid will be returned.

Institutional Charge Refund Policy:

MSOE students who officially withdraw before Week Six of the academic term may be eligible for refunds on their institutional charges for that academic term. More information on MSOE's Tuition and Fees Refund Policy can be found on MSOE's Tuition and Fees Refund Page.  Questions regarding institutional charge refunds can be directed to MSOE's Student Account Office.