An official withdrawal occurs when the student notifies a school official in writing of their withdrawal or completes a Notice of Enrollment Termination Form and a financial aid exit interview (for loan repayment amount). If a student notifies the school of a withdrawal in writing, then the date of withdrawal will be the date on the written notification.
An unofficial withdrawal occurs when the student fails to return from an approved leave of absence. If a student fails to return from an approved leave of absence then the withdrawal date will be determined by the last day of physical attendance. Any unearned funds will be returned as soon as possible but no later than 45 days from the day the school determined the student would not be returning, which would be the day he or she was supposed to return from a leave of absence. If a student is unofficially withdrawn, a school official will record the circumstances and the last day in writing and include the information in the student’s official file.
If a student did not receive all of the funds that he or she earned, he or she may be due a post-withdrawal disbursement. If the post-withdrawal disbursement includes loan funds, PCTI must get permission before it can disburse them. A student may choose to decline some or all of the loan funds so he or she will not incur additional debt. PCTI may automatically use all or a portion of the post-withdrawal disbursement (including loan funds, if the student accepts them) for tuition and fees. For all other school charges, PCTI needs the student’s permission to use the post-withdrawal disbursement. If the student does not give permission, then the student will be offered the funds.
If PCTI is not required to return all of the excess funds, the student must return the remaining amount. If any loan funds must be returned, the student (or parent for a PLUS Loan) is required to repay the funds in accordance with the terms of the promissory note.
Any amount of unearned grant funds that the student must return is called an overpayment. The amount of a grant overpayment that the student must repay is half of the grant funds received or were scheduled to receive. The student must make arrangements with PCTI or the Department of Education to return the unearned grant funds.
The requirements for Title IV program funds when a student withdraws are separate from any refund policy that the school may have. Therefore, a student may still owe funds to the school to cover unpaid institutional charges. The school may also charge for any Title IV program funds that the school was required to return. Any student that doesn’t already know what the school’s refund policy is, may ask the Financial Aid Director for a copy of the refund policy, or refer to the student’s contract.
A student will be dropped from the financial aid program if he or she does not attend school for 10 consecutive days. Any unearned Title IV funds will be returned as soon as possible but no later than 45 days from the day the student was dropped from financial aid.