WHILE ATTENDING COLLEGE

LEAVING SCHOOL EARLY

After you graduate, leave school, or drop below half-time enrollment, you will have a six-month "grace period" before you begin repayment. During this period, you will receive repayment information, and you'll be notified of your first payment due date. You are responsible for beginning repayment on time, even if you don't receive this information. Payments are usually due monthly.

The law requires that, when you withdraw during a payment period or period of enrollment (your school can define these periods for you and tell you which one applies to you), the amount of FSA Program assistance that you have "earned" up to that point is determined by a specific formula. If you received (or your school received on your behalf) less assistance than the amount that you earned, you will be able to receive those additional funds. If you received more assistance than you earned, the excess funds must be returned.

The amount of assistance that you have earned is determined on a pro-rata basis. That is, if you completed 30 percent of the payment period or period of enrollment, you earn 30 percent of the assistance you were originally scheduled to receive. Once you have completed more than 60 percent of the payment period or period of enrollment, you earn all of your assistance.

If you received excess funds that must be returned, your school can explain what portion of those funds must be returned.

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