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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.

Detailed Federal Return of Funds Policy (see Section 15)