Undergraduate Education

Withdrawal Implications for Recipients of Financial Aid

During the Drop/Add Period

During the university’s published drop/add period, students who withdraw or reduce their enrollment may be eligible for a 100 percent refund of tuition for classes dropped.

Financial aid recipients must immediately notify the Financial Aid Office in writing when a withdrawal from one or more classes during the drop/add period results in an enrollment status different from that on which their current financial aid eligibility was based. The same applies if one or more classes are cancelled.

The Financial Aid Office will review the student’s new enrollment and, if appropriate, revise the student’s eligibility based on the new enrollment status.

If a financial aid recipient withdraws from all classes or drops to less than half-time status during the drop/add period, all financial aid awards must be returned to their respective programs. If the student was given financial aid funds for other expenses, he or she will be expected to return those funds to the university.

After the Drop/Add Period

Students who are recipients of Title IV federal financial aid are also covered by federal policies. Title IV federal financial aid is awarded to a student under the assumption that the student will attend for the entire period for which the assistance is awarded and thereby “earn” the award. When a student ceases academic attendance prior to the end of that period, the student may no longer be eligible for the full amount of federal funds that the student was originally scheduled to receive.

If recipients withdraw from all classes on or before the 60 percent point in the session, based on their last date of attendance, federal policy may require them to return any “unearned” Title IV federal financial aid to the U.S. Treasury, even if they are not entitled to a refund of tuition.

A student is required to immediately notify the Registrar and the Financial Aid Office when he or she stops attending classes. If the student fails to notify either office, it is possible that the 50 percent point in the term will be used to determine the student’s last date of attendance, in accordance with federal regulations. If a student withdraws from all classes, the Financial Aid Office will determine if that student’s period of attendance resulted in the earning of all federal financial aid originally awarded. If it is determined that not all the scheduled federal aid has in fact been earned, then the Financial Aid Office will calculate the amount to be returned to the federal financial aid programs. The Financial Aid Office will bill the student via his or her university account for the amount returned. It is the student’s responsibility to contact the Cashier’s Office to settle the bill.

Additional Responsibilities of Students Who Withdraw

Any time a student withdraws from one or more courses, the student should consider the potential effect on his or her satisfactory academic progress (SAP) status. See here for more information about SAP requirements.

Whenever a student’s enrollment drops to less than half time or the student withdraws completely, or if a student takes a leave of absence, he or she must notify the lender or holder of any loans. Student borrowers of federal or university loans must also satisfy exit loan counseling requirements.

It is also the student’s responsibility upon withdrawal from all classes to notify the Student Financial Services Office, the Housing Services Office, the Transportation Services Office and/or the USCard Office, if the student has charges from these offices on his or her student account. Students who have withdrawn from studies may be entitled to a prorated cancellation of charges from these offices.

Leave of Absence

Financial aid recipients considering a leave of absence should be aware of the financial aid implications. Although obtaining an approved Leave of Absence from their programs does allow students to re-enroll in the university without formal re-admission, it does not allow them to defer their loan repayment. The university reports student enrollment to the National Student Clearinghouse throughout the academic year. Lenders subsequently query this database to determine if a student has maintained continuous half-time or greater enrollment.

If students are on a leave of absence from the university, their lender will move their loan from an “in-school” status to a grace or repayment status as required. While on a leave of absence, students may be able to postpone repayment by obtaining a deferment or forbearance from their lenders as a result of unemployment or economic hardship. Students should contact their lenders for more information about repaying their loans. Once they re-enroll at a half-time or greater basis, they may be able to request deferment for “in-school” status.

Tuition Refund Insurance Plan

To complement its own refund policy, the university makes available to students the Tuition Refund Plan (TRP), an insurance policy designed to protect the investment students and their families make in education. The Financial Aid Office strongly encourages all financial aid recipients to take advantage of this plan. If a student formally withdraws from all classes after the end of the drop/add period and he or she is covered by TRP, the student may receive:

  • A credit to his or her student account equal to 100 percent of charges for tuition and mandatory fees, if the withdrawal is the result of documented personal illness or accident; or
  • A credit to his or her student account equal to 60 percent of the charges for tuition and mandatory fees, if the withdrawal is the result of a documented mental/nervous disorder.

The TRP insurance credit will be first applied to any outstanding charges on the student’s university account, including any charges resulting from Title IV federal aid returns. Recipients of university and/or federal financial aid will then receive a cash refund equal to the amount of cash payments made to the account plus any loan payments still on the account (after all returns of Title IV aid have been made in accordance with federal policies, if applicable). The remainder of the TRP insurance credit will be used to repay university financial aid grant or scholarship programs.

Brochures about TRP requirements and claim forms are available in the Cashier’s Office and the Registrar’s Office. All questions about the Tuition Refund Plan should be directed to these offices.

Notes on Federal Policy

Title IV Federal Financial Aid

Students are considered recipients of Title IV federal financial aid if they have used funds from one or more of the following programs to meet educational expenses for the semester in question: Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (SEOG), Federal ACG Grant, Federal SMART Grant, Federal Perkins Loan, Federal Direct Stafford Loan (Subsidized or Unsubsidized), or Federal Direct Graduate or Parent PLUS Loan.

Period of Enrollment

At USC, the periods of enrollment are generally measured using the session(s) in which the student enrolled on a semester basis, starting on the first day of classes and ending on the final day of examinations for a given term. For purposes of Title IV federal aid, any scheduled break of five or more days will not be included in the measurement of the enrollment period.

Measurement of Earned Title IV Federal Financial Aid

When a student withdraws from all classes, the Financial Aid Office will calculate the percentage of earned Title IV federal aid using the point of withdrawal. The earnings calculation is based on the number of days of enrollment, up to and including the day of withdrawal, divided by the total number of days in the enrollment period. In most cases, when a total withdrawal is determined to occur on or before the 60 percent point in a semester, some federal aid will need to be returned.

Title IV Federal Financial Aid Returns

To satisfy federal regulation, returns to Title IV financial aid programs must be made in the following order:

  • Federal Direct Unsubsidized Stafford Loan
  • Federal Direct Subsidized Stafford Loan
  • Federal Perkins Loan
  • Federal Direct PLUS Loan
  • Federal Pell Grant
  • Federal ACG Grant
  • Federal SMART Grant
  • Federal SEOG
  • Other Title IV federal programs

Percentage of Return of Financial Aid Based on a Standard USC Term of 113 Days

# Day in Term % of Term Attended USC Return of Aid Policy Federal Return of Aid Policy
Before the 1st Day of Class 0% 100% 100%
1st 0.9 100% 100%
2nd 1.8 100% 100%
3rd 2.7 100% 100%
4th 3.5 100% 100%
5th 4.4 100% 100%
6th 5.3 100% 100%
7th 6.2 100% 100%
8th 7.1 100% 100%
9th 8.0 100% 100%
10th 8.8 100% 100%
11th 9.7 100% 100%
12th 10.6 100% 100%
13th 11.5 100% 100%
14th 12.4 100% 100%
15th 13.3 100% 100%
16th 14.2 100% 100%
17th 15.0 100% 100%
18th 15.9 100% 100%
19th 16.8 100% 100%
20th 17.7 0% 82.3%
21st 18.6 0% 81.4%
22nd 19.5 0% 80.5%
23rd 20.4 0% 79.5%
24th 21.2 0% 78.8%
25th 22.1 0% 77.9%
26th 23.0 0% 77.0%
27th 23.9 0% 76.1%
28th 24.8 0% 75.2%
29th 25.7 0% 74.3%
30th 26.5 0% 73.5%
31st 27.4 0% 72.6%
32nd 28.3 0% 71.7%
33rd 29.2 0% 70.8%
34th 30.1 0% 69.9%
35th 31.0 0% 69.0%
36th 31.9 0% 68.1%
37th 32.7 0% 67.3%
38th 33.6 0% 66.4%
39th 34.5 0% 65.5%
40th 35.4 0% 64.6%
41st 36.3 0% 63.7%
42nd 37.2 0% 62.8%
43rd 38.1 0% 61.9%
44th 38.9 0% 61.1%
45th 39.8 0% 60.2%
46th 40.7 0% 59.3%
47th 41.6 0% 58.4%
48th 42.3 0% 57.7%
49th 43.4 0% 56.6%
50th 44.2 0% 55.8%
51st 45.1 0% 54.9%
52nd 46.0 0% 54.0%
53rd 46.9 0% 53.1%
54th 47.8 0% 52.2%
55th 48.7 0% 51.3%
56th 49.6 0% 50.4%
57th 50.4 0% 49.6%
58th 51.3 0% 48.7%
59th 52.2 0% 47.8%
60th 53.1 0% 46.9%
61st 54.0 0% 46.0%
62nd 54.9 0% 45.1%
63rd 55.8 0% 44.2%
64th 56.6 0% 43.4%
65th 57.5 0% 42.5%
66th 58.4 0% 41.6%
67th 59.3 0% 40.7%
68th-113th 60.2 0% 0.0%
Note: If the length of the academic term is either longer or shorter than the standard 113 day term, students may request their refund table from the Financial Aid Office.