Student Withdrawal and Fund Handling

From: Barras, William (wbarras@rossmed.edu)
Date: Tue Apr 23 2002 - 10:00:56 EDT

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    I welcome any advisement and comments on the following scenario:
    A student is enrolled full-time and received a full scholarship for tuition.
    Stafford loans netting about $6,000.00 were received by the institution
    for the student's living expenses. About 90% of the Stafford Loan funds
    were refunded to the student, the remaining 10% is kept by the school for
    fees relating to that semester's costs. The student then withdraws at the
    55% point of the semester. Is the institution required to refund 45% of the
    Stafford money back to the government even though we kept a far smaller
    percentage of the Stafford Loans with the overwhelming majority going to the
    student?



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