Financial Aid Refund Policies
Return of Title IV Refund Policy
If the student withdraws from Northwestern Health Sciences University during a trimester, a calculation of "earned" versus "unearned" federal aid must be determined. This federal policy assumes the student earned aid based on how much time has elapsed in the term. If the student received federal financial aid, that aid may be reduced as a result of the withdrawal.
There are three steps that Northwestern Health Sciences University must complete to comply with the federal policy:
- Determine the official or unofficial withdrawal date.
- Determine the amount of earned federal aid.
- Return unearned federal funds to the appropriate program(s).
The student must withdraw officially by contacting the Registrar's Office. The withdrawal date is the date the student began the withdrawal process. If the student failed to withdraw officially, the withdrawal date will become the midpoint of the term, unless the University can document a later date. In certain circumstances, if an earlier date of last academic activity is determined, this date may be used n the calculation of "earned" federal aid.
If the student withdrew or last attended before completing 60 percent of the term, s/he "earned" federal funds in direct proportion to the length of time s/he was enrolled. The percentage of earned aid is determined by dividing the total number of calendar days in the term enrolled by the total number of calendar days in the term. If the student completed 60 percent of the term, s/he earned all of their federal financial aid for the term.
The responsibility to repay unearned aid is shared by the institution and the student. The institution's share is the lesser of unearned aid or unearned institutional charges. The institution's share must be repaid to the federal aid programs in the following order, before the student's share is considered:
- Federal Direct Unsubsidized Loan
- Federal Direct Subsidized Loan
- Federal Direct PLUS Loan (parent or graduate)
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- Other Title IV Aid
If a student is required to repay a portion of the loan through the student's share calculation, the student is not expected to return those funds immediately, but rather begin repayment according to the terms and conditions of the promissory note. If a portion of the unearned Federal Loan funds must be returned by the school, the student is responsible for repaying the money back to Northwestern Health Sciences University. If this causes undue hardship, a satisfactory payment arrangement can be made with the Accounting Office.
Return of MN State Financial Aid Program Policy
Recipients of MN State Financial Aid program funds may also have their awards recalculated upon withdrawal. MN State Financial Aid Program funds may need to be returned based on the result of the MN State Programs Refund Calculation.