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Withdrawal/Repayment Policy

Financial Aid recipients are strongly encouraged to read and understand the withdraw policy. It is important that you are aware of your financial responsibility, if your enrollment status changes. Students planning to withdrawal from all classes must contact the Financial Aid Office to see how the withdraw will affect their financial aid status, and whether repayment is due. Financial aid is paid to students based upon their attendance. However, there are occasions when unforeseen events occur in a student's life that can result in withdrawal from college. If this occurs, it is essential that you know the policy and follow the proper steps for withdrawal.

Federal Regulations for Withdrawing

  • Students that receive Federal Title IV Financial Aid and withdraw from school during the period of enrollment in which they began attendance must return the percentage of unearned funds to the Financial Aid Program.
  • The Financial Aid Office recalculates the amount of Financial Aid a student is authorized when a student officially withdraws from the college or stops attending classes prior to completing more than 60% of a term.
  • A student who changes their enrollment status within the first 14 days of classes will have their financial aid adjusted accordingly and will be responsible for any balance on the student's account created by the enrollment status change.
  • A student who completes more than 60% of the period of enrollment has earned all of their Financial Aid assistance.
  • When a student officially withdraws from the school, the percentage or portion of the student's financial aid received but not "earned" must be repaid.
  • The Financial Aid Office will review official records at the end of each semester. If a student has stopped attending all classes, even if they have not officially withdrawn will have their aid reduced if they did not complete at least 60% of the semester.
  • EXAMPLE: A student who withdraws completing30% of the term will have "earned" only 30% of Title IV Financial Aid, the remaining 70% must be returned.

What Qualifies as a Federal Title IV Fund?

  • Federal Direct Loans - Subsidized and Unsubsidized Stafford Loans, PLUS-Parent Loans for Undergraduate Students
  • Federal Pell Grant
  • Federal Supplemental Educational Opportunity Grant (SEOG)

Repayment Policy

  • The Financial Aid Office will notify the student of the amount of repayment due within 30 days of determining the student's withdraw.
  • The student has 45 calendar days after notification to make a repayment in full or make satisfactory repayment arrangements with Chattanooga State Bursar's Office.
  • Students owing repayments will be INELIGIBLE to receive any Title IV aid.
  • The student returns loan amounts to the lender according to the terms of the promissory note.
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