Financial Aid Handbook & Policies
Federal Return of Funds Policy
Western must calculate a Return of Federal Funds when a student officially withdraws from all classes before completing 60% of an academic term. (After 60% of the term, Federal financial aid is considered fully earned.)
- Step 1 # of days completed divided by the # of days in the semester = the Percent Earned.
- Step 2 The Percent of Unearned Federal Aid = 100% minus the Percent Earned.
- Step 3 Unearned Federal Aid = total Federal aid multiplied by the Percent Unearned.
- Step 4 Funds returned by WIU are the lesser of either:
(Unearned Federal aid) or (institutional charges multiplied by the Percent Unearned).
- Step 5 Funds returned by WIU are applied to the Federal program in the following order:
Federal Direct Unsubsidized Stafford Loans
Federal Direct Subsidized Stafford Loans
Federal Perkins Loans
Federal Direct PLUS Loans
Federal Pell Grants
Federal Supplemental Educational Opportunity Grants (SEOG)
Students that cease attending but do not officially withdraw:
To be eligible for Federal funds received, one must have completed a minimum of 1 class. If a student does not have at least one passing grade at the end of the term, the Financial Aid Office will check with instructors to verify the student did complete the term. If no classes were completed, a Return of Federal Funds calculation is required. The midpoint of the term is used as an "Unofficial Withdrawal" date.