What happens to my Federal Student Aid (FSA) if I withdraw?
FSA at University of Phoenix is awarded for each academic year. An academic year consists of a minimum of 24 credits and 30 weeks of instructional time.
Students generally receive a disbursement of FSA funds at the start of the program and at the beginning of each payment period thereafter, as long as eligibility criteria are met. There are generally two payment periods every academic year, each consisting of 12 credits and 15 weeks of instructional time.
If you withdraw from the University prior to the end of a payment period, a Return of Title IV (R2T4) funds calculation must be performed to determine the amount of FSA funds earned as of the date of withdrawal. Any unearned aid for the payment period must be returned to the appropriate FSA program(s).
The amount of FSA funds earned is calculated by determining the percentage of the payment period completed and applying this percentage to the total amount of aid disbursed — and that could have been disbursed — for the payment period.
For example, if you completed 39 calendar days in a payment period that is 175 days in length, the percentage of that payment period completed is 22.28 percent. If you received $6,250 for the payment period, $1,393 of the disbursed FSA funds were earned. The unearned $4,857 must be returned to its source(s).*
If institutional charges on your student account — tuition, electronic course materials, refunds of FSA funds, etc. — exceed the financial aid earned, you will likely have a balance due on your student account that will be your responsibility to pay.
For example, if you had $2,000 in tuition charges, $200 in electronic course materials fees, and a $500 refund in a payment period in which you only earned $1,393 in FSA, as in the example above, your balance due would then be $1,307.*
If the percentage of the payment period completed is 60 percent or higher, all FSA funds disbursed and that could have been disbursed are considered earned. In this case, there are no unearned funds to return to their source(s).
You can read more about the R2T4 calculation in the Consumer Information Guide.
Please contact your Finance Advisor if you have more questions about the R2T4 process. I am available to assist, as well, at email@example.com.
* The figures provided are examples only; actual amounts may vary for each student.