Refunds due to Withdrawing from South Dakota Mines

Due to circumstances that may or may not be within your control, it may become necessary to withdraw from all classes prior to the end of a particular semester. Students should review the SATISFACTORY ACADEMIC PROGRESS and Federal Student Aid information to determine the affect withdrawing may have on meeting the 67% successful completion requirement for future Federal Aid eligibility.  Students are advised to review the South Dakota Board of Regents Policy Number 5:7 regarding Refunds as they relate to dropping courses for any given semester prior to the start of the semester, during the approximately 10 calendar day add/drop period, dropping one or more, but not all, and total withdrawal from all courses for any given semester.

Your withdrawal is considered to be official when you come to the Office of the Registrar and initiate the necessary paperwork or perform an action, such as dropping all of your classes via Self-Service, that expresses an intent to withdraw. In the event that you begin the withdrawal process, but then decide to remain in school, you must notify the Office of the Registrar. If you change your mind and decide to complete the withdrawal process, your withdrawal date becomes the date in which you first notified the Office of the Registrar of your intent to withdraw. However, if it can be documented that you had engaged in academically related activities since the first notification of intent to withdraw, the later date will be considered your date of withdrawal.

If you are also taking classes at any of the other five South Dakota Board of Regents universities (BHSU, DSU, NSU, SDSU or USD whether on their campus or via the internet) or our office has initiated a Financial Aid Consortium Agreement with a non-South Dakota Board of Regent university (whether on their campus or via the internet) and you remain enrolled in at least one credit hour at the time of your withdrawal from South Dakota Mines, this will determine if you are considered to have withdrawn from South Dakota Mines, or have just dropped classes. As long as you remain enrolled for at least one credit hour at another post-secondary institution, no refunds will be calculated. You will need to inform our office in the event you withdraw from all classes at the 6 South Dakota Board of Regent universities or at any other institution for which a Financial Aid Consortium Agreement is in effect.

Depending on the point in the semester that withdrawal occurs, you may be entitled to a refund of your Tuition and Fees and if contracting with the University, Room and Board. However, the U. S. Department of Education requires institutions to use the Federal refund policy (known as Return to Title IV) in calculating the amount of any funds that must be returned to the appropriate Federal Aid Programs you benefited from (other than Work-Study). These Federal Aid Programs include, but are not limited to Pell Grant, SEOG, Subsidized and Unsubsidized Direct Loans, Direct Grad PLUS and Direct Parent PLUS Loans. Return of Title IV Funds is based on "earned" and "unearned" financial aid as related to the period of time you are enrolled. During the first 60% of the period (academic term) you "earn" Title IV funds and other applicable aid on a per diem prorated manner based on a percentage of the enrolled period by dividing the number of calendar days (not class days) you attended South Dakota Mines by the number of days in the academic term of enrollment. Breaks of 5 days or more (such as Thanksgiving and Spring break) are excluded from the calculation. If you remain enrolled beyond the 60% point, you are considered to have earned 100% of your aid for the period and the institution gets to keep all aid that was applied to your charges. The "unearned" Title IV funds must be returned to the aid programs. Unearned aid is the amount of disbursed Title IV aid that exceeds the amount of Title IV aid earned based on attendance in the enrollment period. As a result, you may be required to immediately repay any aid that was received as a cash disbursement to you during the semester.

Funds are returned by South Dakota Mines to the Federal Aid Programs based on the following hierarchy, and only to those programs from which the student received assistance: Unsubsidized Direct Loan, Subsidized Direct Loan, Direct PLUS Loans (Graduate and Parent PLUS), Pell Grant, SEOG and then other Federal Title IV Aid Programs. Funds that the student may be required to repay are based on the same hierarchy, however, loan funds are repaid according to the repayment provisions of their loan promissory note and only 50% of grant funds determined to be owed are required to be repaid.

In the event you cease attendance without notifying the Office of the Registrar, the University has the option of considering your withdrawal date to be the later of:

  1. The midpoint of the period of enrollment;
  2. Your last documented date of academically related activity; or
  3. If you didn’t notify the Office of the Registrar due to circumstances beyond your control (such as natural disaster, hospitalization, death of an immediate family member, etc.), the date relative to that circumstance.

You are advised to review further information in the college catalog regarding the withdrawal process and the amount of refunds you could expect based upon when you withdraw.

Return of Title IV Funds Example

Example A:
Student withdraws on the 27th day of a 108-day semester for a 25% (27/108) earned Financial Aid disbursement. The charges on the student account were $1600 for Tuition/Fees. The student did not contract with the University for Room/Board. The total Federal Student Aid (Title IV) disbursed was $2400, with $1600 being applied to Tuition/Fees and $800 given to the student as a cash disbursement.

Earned aid: $2400 (aid disbursed) x 25% = $600. Unearned aid to be returned: $2400 - $600 = $1800. Unearned percentage: 100 - 25% = 75% unearned. Unearned charges: 75% (unearned) x $1600 (charges) = $1200.

The institutional share is the lesser of $1800 (unearned aid to be returned) and $1200 (unearned charges).

The student's share is $1800 (unearned aid) - $1200 (unearned charges) = $600.

Thus, of the $1800 total to be returned to the Federal Aid Programs, $1200 (75% of $1600 used for payment of charges) is to be returned by the institution and $600 (75% of $800 paid to student) is to be repaid by the student.

Example B:
Same situation as A, except the student withdraws on the 65th day of a 108-day semester (65/108 = 60.2%). Since this is beyond the 60% point in the semester, a Return of Title IV calculation will be obtained and documented in the student's file, but it will indicate that no Return of Title IV funds are required by the student or South Dakota Mines.

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Always Here to Help

Financial aid is new territory for many students and their parents, and can some times be complex.

Please feel free to contact the South Dakota Mines Financial Aid Office if you have questions or need assistance on financial aid matters.