TO TITLE IV POLICY (R2T4)
Repayment of Unearned Federal Financial Aid
If you withdraw from school prior to completing
over 60% of a term, you may be required to repay a portion of the
federal financial aid that you received for that term.
A pro rata schedule is used to determine the amount of federal student
aid funds you will have earned at the time of withdrawal.
Federal aid includes Federal Stafford Loan, Federal Perkins
Loan, Federal PLUS Loan, Federal Pell Grant, and Federal Supplemental
Educational Opportunity Grant.
How much will I have to repay when I withdraw
The amount of repayment
depends upon the number of days that you attend school in the term,
the type of financial aid that you received, and whether or not Alabama
A&M University (AAMU) refunds your tuition and fees. The portion
of the term that you do not attend represents the portion of aid that
is determined to be unearned. If you are receiving
loans only and AAMU refunds the full amount of your tuition and fees,
you will only be required to repay your loans in accordance with the
regular repayment schedule. All other students who withdraw prior
to completing over 60% of a term must repay a portion of their federal
When will I have earned 100% of my federal financial
If you initiate withdrawal procedures after completing over 60% of
the enrollment term, you will have earned 100% of your federal financial
aid for that term and no repayment is required. The following examples
refer to students who are enrolled in at least one course that meets
the full length of the standard term. For
2010-11, you will have earned 100% of your federal aid if you
withdraw on or after: November 1, 2010 for Fall 2010; April 1,
2011 for Spring 2011July 11, 2011 for Summer 2011. If
you are only enrolled in courses that are shorter than the full length
of the standard term, the date that you have earned 100% of your federal
aid will vary.
When does the AAMU Bursar refund tuition and fees?
If you withdraw from AAMU
prior to the drop/add deadline for a term, then a full tuition refund
will automatically be processed for you. Contact
the University Bursar at 256-372-5200.
How is the amount of the federal aid repayment calculated?
Earned federal financial aid is prorated according to the percentage
of the semester completed. The amount of unearned federal
aid is the total amount of federal aid less the portion of earned
The amount of unearned federal aid is divided
into the following two categories:
A. Unearned Federal Aid Attributed to School Charges: (Regardless of the order and method in which tuition and fees are paid, unearned federal aid is attributed to school charges first, then to non-school expenses.)
· AAMU is required to return all unearned federal aid attributed to school charges. This means that a portion of your tuition and fees is no longer covered by financial aid, and you are liable for paying the balance of your school charges.
· All unearned federal aid attributed to school charges is subject to immediate repayment by you unless you are eligible for a tuition and fee refund.
B. Unearned Federal Aid Attributed to Non-School Expenses:
· For unearned aid allocated to the federal loan programs that is attributed to non-school expenses, you are not required to make immediate repayment. The regulation allows repayment to be made in accordance with the regular repayment schedule of the loan.
· Federal grant repayment is limited to 50% of the initial unearned aid allocation.