Federal Financial Aid Policies and Procedures

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In accordance with federal regulations under the Title IV of Higher Education Act of 1965 (as amended) Norwich University is required to publish several policies and guidelines for its students both undergraduate and graduate. Below are explanations of policies and procedures that we believe our students need to be familiar with:

Qualifying for Aid/Applying for Aid

To be eligible for federal, state and institutional aid students must meet the following criteria:

  1. Demonstrate federal need (may not be required for some loan and institutional programs)
  2. Have a standard high school diploma, GED or ATB (Ability to Benefit) on file.
  3. Be enrolled in a college credit program.
  4. Maintain financial aid standards of academic progress in program o study.
  5. Not be in default or owe a repayment of Title IV funds.
  6. Have a valid Social Security number.
  7. Be a U.S. citizen or an eligible non-citizen with permanent residency status and an alien registration identification number (may not be required for some institutional programs).
  8. Be registered with the Selective Service (males between the ages of 18-25).
  9. Have not borrowed in excess of loan limits under the Title IV program.
  10. Federal regulations require that students may only receive financial aid if they are maintaining satisfactory academic progress (see details below).
  11. Must have all requested documents on file before disbursements can be made.

To apply for financial assistance it is the student’s responsibility to annually apply for financial aid by completing the Free Application for Federal Student Aid (FAFSA). The FAFSA form is available at www.fafsa.gov. The students must also provide any required forms and documentation deemed necessary by the Office of Student Financial Planning.

Verification

Each year at least 30% of financial aid recipients are randomly selected for verification by the U.S. Department of Education. If a student is selected for federal verification they will be asked to complete a Verification Worksheet (provided by the Office of Student Financial Planning) and must provide additional information before financial aid can be disbursed to the student account. This documentation may include but is not limited to federal income tax returns and W-2 forms (student’s, spouse and/or parents/guardians), proof of untaxed income, housing allowances, etc. Students will be notified in writing of all documents required to fulfill this federal requirement. If after review by the Office of Student Financial Planning there are any changes to the financial aid package the student will be notified in writing.

Title IV Financial Aid Satisfactory Academic Progress Policy

Norwich University students who are receiving any type of Title IV financial aid are required to meet Satisfactory Academic Progress (SAP). Academic history is reviewed for all students applying for financial aid. Students should review the Academic Regulations to familiarize themselves with the academic requirements for good standing, academic probation and academic dismissal. Download Academic Regulations (pdf). Students who fail to be in good academic standing are not eligible to receive federal financial aid. Students with extenuating circumstances may be given a grace period of one semester (Appeals Process below).

Academic performance is reviewed at the end of each academic semester. The Office of Student Financial Planning is notified of any student who has been placed on academic probation or dismissal by the Registrar’s Office. Students who fall into this category will be notified in writing of the impact on their financial aid.

Appeals Process

For students whose aid is revoked due to poor academic performance they may appeal this decision. To appeal, the student must write a letter to the following address:

Academic Appeals
Student Financial Planning Office
Norwich University
158 Harmon Drive
Northfield, VT 05663

Students are encouraged to attach any documentation or supporting materials that will explain their extenuating circumstances and plan for academic improvement. After reviewing the documentation the Dean of Enrollment Management will render a decision and the student will be notified of the decision. Aid may be reinstated for a period of one semester on a probationary basis with academic performance reviewed at the end of that term. If the appeal is denied the student will not be eligible for Federal Title IV assistance for the upcoming semester.

Student Withdrawals and Refunds

In the event that a student leaves Norwich University during an academic term either voluntarily or involuntary they are subject to the university’s refund policies. Students should review all financial policies as outlined by the Bursar’s Office. These policies are available in their entirety at www.norwich.edu/bursar. The withdrawal date that is used in determining a student’s refund or repayment will be defined as the actual date that the student begins the withdrawal process, the student’s last day of academically related activity or the midpoint of the payment period for a student who leaves without notifying the institution.

The U.S. Department of Education requires Norwich University to use the Return of Title IV funds policy for students who withdraw from school and who are receiving Federal Title IV student financial aid. Title IV funds refer to federal financial aid programs authorized under the Higher Education Act of 1965 (as amended) and includes the following programs: Federal Stafford Loans, Federal Unsubsidized Stafford Loans, Federal Parent Loans for Undergraduate Students (PLUS), Federal Perkins Loans, Federal Pell Grants and Federal Supplemental Opportunity Grants.

The U.S. Department of Education stipulates the way funds paid toward a student’s education are to be handled when a recipient of Federal Student Aid (FSA) funds withdraws from Norwich University. A statutory schedule is used to determine the amount of FSA funds a student has earned when he or she ceases attendance based on the period the student was in attendance. Up through the 60-percent point in each payment period or period of enrollment, a pro-rata schedule is used to determine how much FSA funds the student has earned at the time of withdrawal. After the 60-percent point in the payment period or period of enrollment, a student has earned 100 percent of the FSA funds.

In general, the Amendments require that if a recipient of FSA assistance withdraws from a school during a payment period or period of enrollment in which the recipient began attendance, the school must calculate the amount of FSA assistance the student did not earn and those funds must be returned. The percentage earned is one of the following:

  • If the day the student withdrew occurs on or before the student completed 60 percent of the payment period or period of enrollment for which assistance was awarded, the percentage earned is equal to the percentage of the payment period or period of enrollment for which assistance was awarded was completed.
  • If the day the student withdrew occurs after the student has completed 60 percent of the payment period or period of enrollment, the percentage earned is 100 percent.

The percentage and amount not earned is the complement of the percentage of FSA assistance earned multiplied by the total amount of FSA assistance that was disbursed (and that could have been disbursed) to the student, or on the student’s behalf, for the payment period or period of enrollment, as of the day the student withdrew, or the date the institution determined that they withdrew.

If the student receives less FSA assistance than the amount earned, the school must comply with the procedures for post-withdrawal disbursement specified by the department in regulations. If the student receives more FSA assistance than the amount earned, the school, the student, or both must return the unearned funds as required, and in the order specified. The school must return the lesser of:

  • The amount of FSA funds that the student does not earn; or
  • The amount of institutional costs that the student has incurred for the payment period or period of enrollment multiplied by the percentage of the funds that we not earned.

The student (or parent, if a Federal PLUS loan) must return or repay as appropriate, the remaining unearned FSA grant and loan funds. However, a student is not required to return 50 percent of the grant assistance received by the student that would be the responsibility of the student to repay.

The student (or parent, if a Federal PLUS loan) must return the unearned funds for which they are responsible to loan programs in accordance with the terms of the loan, and to grant programs as an overpayment. Grant overpayments are subject to repayment arrangements satisfactory to the school or overpayment collection procedures prescribed by the Secretary of the Department of Education.

FSA funds for the payment period or period of enrollment for which a return of funds is required must be returned in the following order:

  • Unsubsidized Federal/Direct Stafford Loans
  • Subsidized Federal/Direct Stafford Loans
  • Federal Perkins Loans
  • Federal/Direct Grad PLUS Loans
  • Federal/Direct PLUS Loans
  • Federal Pell Grants for which a return of funds is required.
  • Academic Competitiveness Grants for which a return of funds is required.
  • National SMART Grants for which a return of funds is required.
  • Federal Supplemental Opportunity Grants for which a refund is required.
  • Other assistance under Title IV regulations for which a refund of funds is required.

The student will be issued the larger of the institutional refund or the federal refunds.; Any questions should be directed to the Office of Student Financial Planning at (802) 485-2015 or nufinaid@norwich.edu.