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Withdrawal Policy

Federal regulations require Title IV financial aid funds to be awarded under the assumption that a student will attend the institution for the entire period in which federal assistance was awarded. When a student withdraws from courses for any reason, including medical reasons, he/she may no longer be eligible for the full amount of Title IV funds that he/she was originally scheduled to receive.

Cal State East Bay students who receive federal financial aid and do not complete their classes during a term could be responsible for repaying all, or a portion, of the aid they received. Students who do not begin attendance must repay all financial aid disbursed for the term.

We encourage students to read all the information below prior to making a decision to withdraw.

Please review the Institutional Withdraw Policy

When the student withdraws (officially, unofficially, or is dismissed from Cal State East Bay prior to the end of the term), they may no longer be eligible for the full amount of funds that were originally awarded.

If a student withdraws before completing 60% of the term, the amount of financial aid earned must be determined, by performing a Return of Title IV (R2T4) funds calculation.  All unearned aid MUST be returned (canceled from the student's account). The student will be notified in writing if any aid must be returned and their total amount owed to the university.

The amount of unearned aid is determined by a daily prorated ratio. Once the student has completed more than 60% of the term, they are considered to have earned all of their federal assistance they were scheduled to receive.

Students considering withdrawing from Cal State East Bay are encouraged to contact the Office of Financial Aid to determine any financial aid impacts.

Unearned financial aid funds will be returned in the following order:

  • Federal Direct PLUS Loan
  • Federal Unsubsidized Direct Stafford Loan
  • Federal Subsidized Direct Stafford Loan
  • Federal Pell Grant
  • Federal SEOG Grant
  • Federal Iraq and Afghanistan Service Grant
  • Other Title IV Programs

*Work-study wages earned are not included in the return of federal financial aid calculations. 

The withdrawal date used in the Return of Title IV (R2T4) funds calculation is the actual date indicated on the official withdraw record.  If the student stops attending classes without notifying the university, the withdrawal date will be the midpoint of the term or the last date of academic activity as determined by Cal State East Bay.

Any grant overpayment identified in the R2T4 calculation must be repaid by the student within 45 days of receiving notification from the Financial Aid Office. If the grant overpayment cannot be paid in full, a repayment plan may be arranged with the Student Financials Office. If a student does not repay the grant funds or make a satisfactory payment arrangement within 45 days, the account will be turned over to the U.S. Department of Education (ED) as an overpayment of federal funds.

Students who owe an overpayment of Title IV funds are ineligible for further disbursements from federal financial aid programs at any institution until the overpayment is paid in full.

A notification letter outlining the amount of funds returned to the federal program(s) will be emailed to the student's Horizon email. The university will return funds on the student's behalf to the appropriate federal program(s) and subsequently will bill the student's account. A statement reflecting these charges will be sent to the student. The student is responsible for all charges and overpayments resulting from a Return of Title IV (R2T4) Calculation.
In compliance with federal regulations, an evaluation will be done to determine if all eligible aid had been disbursed as of the withdrawal date. If not, and the student meets the federal criteria for a PWD, the student will be notified of their eligibility within 30 days of determining the student’s date of withdrawal. After being notified of PWD eligibility, students must reply if they wish to accept the post withdrawal disbursement. A PWD would first be used toward any outstanding charges before any funds are returned to you. If no response is received within approximately two weeks of notification, the award will be canceled.
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