Repayment of Federal Funds Procedure for Students who Withdraw or Cease Attending
Students considering a departure from Touro College and University System should meet with the Office of Financial Aid if they are using ANY type of federal funding for their education.
Students who withdraw completely from the University, officially or unofficially, are required to return a portion of their federal financial aid determined by the percentage of the term completed. This policy applies to all federal funding and is mandated by federal regulations.
Using calendar days, the percentage of the term completed determines the amount of repayment. For example, if a student withdraws after completing 40% of the semester, 60% of the federal aid is “unearned” and must therefore be returned. Students who withdraw after completing 60% of the semester are not required to return aid. However, these students will still be held to the academic standards of their program, per the Satisfactory Academic Progress Policy.
If the student is eligible for a refund of tuition and fees according to the University Refund Policy (see the University Catalog, the refund will be applied to any obligation created by the repayment of federal funds. Registration, transcripts, and other rights will be held until this debt is paid. Additionally, all future federal financial aid will be held until federal funds are repaid.
Touro College and University System must return Title IV funds to the programs from which the student received aid during the payment period or period of enrollment as applicable, in the following order, up to the net amount disbursed from each source:
- Unsubsidized Direct Loans
- Subsidized Direct Loans
- Federal Perkins Loans
- Direct PLUS Loans
- Federal Pell Grants for which Return is required
- Federal Supplemental Educational Opportunity Grants (FSEOG) for which a Return is required
- TEACH Grants for which a Return is required
- Iraq and Afghanistan Service Grant, for which a Return is required