Students receiving all ‘F’ grades are required to comply with the federal Title IV Refund Policy as well as KSU’s Satisfactory Academic Progress Policy. When federal financial aid either partially or fully pays educational expenses and the student receives all ‘F’ grades, our office is required by federal regulation to treat the student’s financial aid file as an “unofficial withdrawal.” The student can avoid this status if acceptable proof of attendance or participation in a class related activity beyond the midpoint of the semester (see below) is provided to the Student Financial Aid Office.

If not, then an unofficial withdrawal status is considered and our office must cancel and return fifty percent of aid disbursed to the student’s account or university charges (whichever is lesser) back to the following Title IV programs:

Federal Direct Loans (subsidized and unsubsidized), Federal Perkins Loan, Federal PLUS Loans (Graduate and Parent), and Federal Pell Grant, and Federal Supplemental Education Opportunity Grant (SEOG). SFAO also reviews students receiving a grade of Incomplete. For the Incomplete class, this is to verify the student is still in progress of finishing up work for a passing grade.

Students will be notified by letter and email (University email) if they fall into this “unofficial withdrawal” category. The University has up to 30 days after the last day of the semester to determine if a student earned the failing grades or stopped-out or walked-away (unofficial withdrawal). If the Financial Aid office cannot document the failing grades were earned, then SFAO has 45 days to make the adjustments to the accounts, return aid to the appropriate federal programs, and to notify students that their accounts have been adjusted by fifty percent.

*An invalid or outdated mailing address will not be considered as a legitimate excuse since it is the student’s responsibility to maintain accurate home address information with the University. Students can update their addresses at the Registrar’s Office.

If the student’s account is classified as an “unofficial withdrawal”, the SFAO uses several components to determine the percentage and amount of financial aid not earned. In order to calculate that percentage, the SFAO uses the midpoint date of the semester; total federal aid disbursed or could have been disbursed to account, and the amount of University charges.

For example:

The student is receiving Unsubsidized Direct Loan for $2500, Subsidized Direct Loan for $2,750, and Pell Grant for $700. The student fails all classes for a semester. At this point, the University charges totaled $3161, and the midpoint date was MM/DD/YY (to be determined for each term). Then, the SFAO does not obtain documentation from university records that the student earned the failing grades. SFAO will calculate the required fifty percent of total aid disbursed to account ($5950 x 50%) or $2975, and take the total University charges ($3161 X 50%) or $1580.50, and then take the lesser amount of the two ($1580.50). This amount, $1580.50, will be refunded back to the Unsubsidized Direct Loan program, which will decrease the loan debt of the student, but will probably result in the student owing the University that balance (assuming the account balance was $-0- prior to calculation).

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