UMUC

Financial Aid Office

Financial Aid Policies

A student who withdraws from the university within the first 60 percent of the semester will receive an adjustment to their student financial aid. This adjustment to the student's financial aid will be based on a percentage which represents the amount of time remaining in the semester and will be applied to the total institutional charges assessed the student, as well as, the financial aid applied to the student's account.
The percentage that represents the amount of time remaining in the semester shall be determined by dividing the total number of calendar days in the semester not completed by the student by the total calendar days in the semester. The total calendar days in the semester begins with the first day of classes, ends with the last scheduled day of exams, includes weekends, but excludes scheduled breaks of five or more days and days that the student was on an approved leave of absence. No adjustments will be made to a student's financial aid if the percentage representing the amount of time remaining in the semester is less than 40 percent.. 

Return of Funds Policy

Read UMUC's Return of Funds policy.

The return of funds policy follows these steps.

  • Determine the percentage of the enrollment period completed by the student.

Days Attended ÷ Days in Enrollment Period = Percentage Completed
If the calculated percentage exceeds 60 percent, then the student has “earned” all Title IV aid for the enrollment period.

  • Apply the percentage completed to the Title IV aid awarded to determine the student's eligibility for aid prior to the withdrawal.

Total Aid Disbursed   x   Percentage Completed   =   Earned Aid

  • Determine the amount of unearned aid to be returned to the appropriate Title IV aid program.

Total Disbursed Aid - Earned Aid = Unearned Aid to be Returned
If the aid already disbursed equals the earned aid, no further action is required. If the aid already disbursed is less than the earned aid, a late disbursement will be made to the student. If the aid already disbursed is greater than the earned aid, the difference must be returned to the appropriate Title IV aid program.

  • Distribute the responsibility to return funds between the institution and the student.

If the type of aid that the student is responsible for returning is a loan, then the student is not required to immediately repay the amount as the grace period for the loan, generally six months, is invoked. If the type of aid that the student is responsible for returning is a grant, then the student will incur a charge on the University bill. Federal return of funds regulations require that the student only repay one-half of the grant amount that is unearned.
Any refund or repayment obligation will be clearly outlined for the student in writing and will also appear on their University bill.

  • Return the Title IV aid, based on the type of aid disbursed, in the following order:
    1. Federal Direct Unsubsidized Stafford Loan
      2. Federal Direct (Subsidized) Stafford Loan
      3. Federal Perkins Loan
      4. Federal Direct PLUS (Parent) Loan

If funds remain to be returned after satisfying all loan repayment obligations, any excess must be refunded to the programs listed in the following order:

  • Federal Pell Grant Program
  • Federal SEOG Program
  • Other grants or loan assistance authorized by Title IV of the Higher Education Act (HEA).

The university will assume the responsibility for making the appropriate refunds to the Title IV programs for overpayments received by the student, as well as overpayments received by the university. It is the responsibility of the student to pay the University for these overpayments within 90 days of the date that the student withdrew from the university. Failure to repay the University the amounts of the overpayments will jeopardize the student's eligibility for further Title IV financial assistance at UMUC as well as other institutions of higher education.

Satisfactory Academic Progress (SAP) Information

Learn more about the policy on Satisfactory Academic Progress (SAP).