Union Institute and University

Withdrawal Affects Financial Aid

Students who withdraw or drop all courses prior to completion of 60% of the current term are subject to a federal financial aid refund calculation, also referred to as a Title IV refund or R2T4 Return of Federal Funds calculation. Union Institute & University uses an official calculation template on a secure US Department of Education website to determine the amount of federal aid to reverse from the student account and return to USDE. The results of the Title IV refund calculation can impact the amount of aid you can retain upon withdrawing from Union Institute & University or dropping all courses in a term. After the 60% point in the term of withdrawal you will have generally earned 100% of the federal financial aid disbursed to you. If a refund is due to the federal financial aid programs, funds are returned in the following order as prescribed by the U.S. Department of Education:

  1. Unsubsidized Federal Stafford Loan
  2. Subsidized Federal Stafford Loan
  3. Federal Perkins Loan
  4. Federal PLUS / Graduate PLUS Loan
  5. Federal Pell Grant
  6. Federal SEOG
  7. Other federal student aid under TITLE IV

Students are subject to both the university’s tuition refund policy and the federal Title IV refund calculation. State grants are subject to state regulations and may be returned differently than federal aid.  Refer to the Union Institute & University tuition policies for each academic program on our website. Students who do not begin attendance or engagement in a registered course are not eligible for financial aid for that course. Students permitted to take an academic leave of absence are considered to be withdrawn for financial aid purposes. Your student loans go into repayment and your grace period begins when you graduate, withdraw, drop below half-time status, are on an academic leave of absence, or do not register for a subsequent term. If you have borrowed a student loan for your attendance at Union Institute & University, you will be required to complete loan exit counseling to make sure you understand your rights and responsibilities as a borrower.