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Offices & Services > Office of Financial Aid > Financial Aid Handbook

Financial Aid Return Policies

Contact

Office of Financial Aid

2 East South Street

Galesburg, IL 61401-4999

309-341-7149

800-678-KNOX (Toll)

financialaid@​knox.edu

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When a student withdraws during a term, the amount of federal financial aid earned by the student is determined on a pro-rata basis up to the end of 60% of the term.

For example, if the student has completed 30% of the term, he/she has earned 30% of the aid originally scheduled to be received. Once a student has completed more than 60% of the term, he/she has earned all of his/her federal financial aid. (Federal Work Study funds are excluded from the return of Title IV funds requirements.)

If a student has received excess funds, the College must return a portion of the excess equal to the lesser of:

  • The student's institutional charges multiplied by the unearned percentage of funds, or
  • The entire amount of the excess funds.

If the aid to be returned is in the form of a loan that has been released to the student (or parent) borrower, the student (or parent) can repay the loan in accordance with the terms of the promissory note over a period of time.

If the aid to be returned is in the form of grant funds, the law provides that the student may repay 50% of the grant rather than 100%.

Order of Federal Refunds to be Returned

The funds must be credited to outstanding loan balances or to any amount awarded for the term in which a return of funds is required in the following order:

  1. Unsubsidized Federal Direct Stafford Loans
  2. Subsidized Federal Direct Stafford Loans
  3. Federal Perkins Loans
  4. Federal PLUS Loans received on behalf of the student
  5. Federal Pell Grants
  6. Federal SEOG Grants


Refund of Funds from the Illinois Student Assistance Commission Monetary Award Program (MAP)

Per the rules of the Illinois Student Assistance Commission, if a MAP recipient withdraws after the end of the drop/add period (the end of the second week of the term), the student may receive MAP grant payment for costs incurred up to the term award provided the College's tuition refund policy indicates that the student has incurred charges in the amount of the claim.

Refund of Institutional Financial Aid

Institutional financial aid consists of Knox Grants, Knox Scholarships and Knox Loans. The refund/cancellation of institutional financial aid follows the pro-rata policy for the cancellation of institutional charges. When a student withdraws by the end of the 60% of a term, a pro-rated portion of his/her institutional financial aid will be returned to the program(s) from which the student received funds. After 60% of a term has been completed, there is no cancellation of institutional financial aid.

Refund of Private Scholarships, Grants and Loans

Unless otherwise requested by the donor or a private scholarship, grant or loan award, the refund/cancellation of private financial assistance also follows the pro-rata policy for the cancellation of institutional charges and institutional financial aid.

Example of a Refund and Return of Title IV Financial Aid

Student enrolls for fall term, beginning on September 8 and ending on November 22 (76 days). Student withdraws from all courses on October 5.

Refund Calculation

  • Total Charges for Tuition, Fees, Room and Board: $13,984
  • September 8 to October 5 (withdrawal date) = 28 days/76 days in term = 36.8% of the term
  • Pro-rata charges: 36.8% x $13,984 = $5146
  • Refund/cancellation of charges: $ 8,838

Return of Title IV Aid Calculation

  • Title IV Aid Disbursed on September 19:
    • Subsidized Direct Loan $1,162
    • Unsubsidized Direct Loan $664
    • Perkins Loan $ 200.00
    • Pell Grant $1,850
    • SEOG Grant $ 250
    • Total Title IV aid disbursed $4,126
  • Percentage of Title IV Aid Earned: 28days of enrollment/76 days in term = 36.8%
  • Amount of Title IV Aid Earned: 36.8% x $4,126 = $1518
  • Total Title IV Aid to be Returned: $4,126- $1,518 = $2,608
  • Amount of Unearned Title IV Aid Returned by the School:
    • Subsidized Direct Loan $1,162
    • Unsubsidized Direct Loan $664
    • Perkins Loan $200
    • Pell Grant: $ 582
  • Total Title IV aid returned to federal programs $2,608