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Withdrawal and Its Impact on Financial Aid

If you stop attending classes or withdraw from all classes during a semester or summer term, you may be required to repay some of your federal grants and/or loans. If you cancel all of your classes, you will be required to repay all aid — federal, state, institutional and private. This page will provide more information on how withdrawing will affect your financial aid.

Official Withdrawal or Cancellation

If you decide to leave the university, you must follow the official withdrawal process, including getting approval from your dean’s office. Please be aware that if you withdraw from all classes after the semester begins, you may have to return some of the financial aid that you had received. Federal regulations require that the Office of Scholarships and Financial Aid complete a Return to Title IV calculation to determine the amount of money to return. This could leave you with a balance on your account that would need to be paid immediately. The Office of Scholarships and Financial Aid is notified by the Registrar when a student has officially withdrawn from classes. The calculation for Return of Title IV funds is based on when a student initiates the withdrawal process by speaking with an academic advisor, a member of the Registrar’s staff, or completing the University’s withdrawal form.

In the event no academic activity can be documented, you will be considered as not having attended.

Unofficial (Stop Out) Withdrawal or Cancellation

Federal financial aid regulations state that if you earn unsatisfactory grades or status (e.g. F’s, X’s, I’s, Q’s, and/or no grades assigned) in all courses for a semester, you will be considered an unofficial withdrawal (stopping out without documented dean’s approval), and a return of federal grants and/or loans must be calculated unless the institution can document that you engaged in academic activity beyond the 60% point of that semester. Official UT records and verification of academic activity from official university sources will be reviewed to assist in this determination. If the last date of academic activity cannot be documented as occurring on or after the 60% point of the semester, the withdrawal date will be considered the midpoint of the semester unless documented otherwise.

In the event no academic activity can be documented, you will be considered as not having attended.

Determining Repayment

The amount that you need to return is calculated from a formula provided by the federal government. The amount returned depends on the type of financial aid you received, the effective date of your withdrawal and the institutional expenses you incurred. Repayment is due immediately to The University of Texas at Austin. If courses are officially canceled or no academic activity can be documented, all federal aid must be returned.

All repayments are due immediately to The University of Texas at Austin, and balances are viewable on What I Owe. Funds must be repaid prior to receiving additional student aid at The University of Texas at Austin or any other institution. A financial bar for the amount owed will be placed on your UT records until the amount is paid in full.

If the amount paid to you was less than the amount you earned, you may be eligible to receive a post-withdrawal disbursement of any earned aid that was not paid out prior to your leaving the university. The Office of Scholarships and Financial Aid will notify you if you are eligible for a post-withdrawal disbursement. For federal loans, you will have to sign a statement agreeing to accept the loans.

Allocation of Returned Federal Funds

Title IV funds must be returned to the programs from which the student received aid during the semester in the following order, up to the net amount disbursed from each source:

  • Unsubsidized Direct Loans (other than Direct PLUS Loans)
  • Subsidized Direct Loans
  • Direct PLUS Loans
  • Federal Pell Grants
  • FSEOG
  • TEACH Grants
  • Iraq and Afghanistan Service Grant

Satisfactory Academic Progress

Withdrawn courses or courses with unsatisfactory grades or status (e.g. F’s, X’s, I’s, Q’s, and/or no grades assigned) are considered attempted and unsuccessfully completed and will negatively affect your pace toward degree completion as well as count toward maximum timeframe. Please review our Satisfactory Academic Progress policy.

If the last date of academic activity cannot be documented as occurring on or after the 60% point of the semester, the withdrawal date will be considered the midpoint of the semester unless documented otherwise.

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