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Financial Aid

Article Index

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. 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 Pell Grants, Federal Supplemental Opportunity Grants, Academic Competitiveness Grants, and SMART 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 were 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/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.
  • Iraq Afghanistan Service Grant for which a return 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 Aid at (802) 485-2850 or This email address is being protected from spambots. You need JavaScript enabled to view it..

Need Help? Contact Us!

Office of Financial Aid
1 (800) 468-6679 | 1 (802) 485-2850
nufinaid@norwich.edu

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