If a student who is in receipt of US Federal Funding withdraws from the college, or takes unapproved leave of absence, during a loan period, the FAA will determine the amount of loan money to be returned to the Federal Student Aid Program.
Note: The return of Federal Loan Funds takes precedence over the college’s own tuition refund policy in the event of withdrawal. However, students should note that the return of loan funds does not cancel their liability to the University of Limerick for any tuition fee balance outstanding on their account.
When a student withdraws, the college is required to calculate the amount of “unearned” funds to be returned. Unearned funds are calculated pro-rata, based on the number of days attended during the loan period, up to the date that notice of withdrawal is received by the college. The FAA will calculate the number of days attended as a percentage of the total number of days in the loan period. This determines the amount of “earned” funds, and any remaining “unearned” funds must be returned to the FSA program.
This calculation is applied to the total amount disbursed for the loan period. Therefore, a student who received a refund (for living expenses etc) from the college after tuition was deducted, will be required to repay the “unearned” portion.
Note: If a student completes more than 60% of the loan period, no return of FSA funds is required.
Return of Funds:
When a student withdraws, the college is required to return any “unearned” funds, up to the net amount disbursed from each source, in the following order:
• Unsubsidized Direct Loans
• Subsidized Direct Loans
• Direct PLUS Loans
Loan Repayment:
When a student withdraws, the college will inform the servicer of the date of separation, and the borrower “grace period” will commence. All loan funds received up to that date, including any funds given to the student for the loan period during which they withdrew, will be repayable at the end of the grace period, under the terms and conditions of the Master Promissory Note(s).