Even though your financial aid is paid to your student account at the start of each term, you actually earn the funds as you go through the term. If you withdraw before finishing the term, the amount of aid you've earned is calculated using a specific formula.

If you (or UVM or your parent on your behalf) didn't get the aid you earned, you might be able to get the rest through a post-withdrawal disbursement. But if you got more aid that you earned, the extra money has to be returned by either you or UVM.

The amount of aid you have earn is based on how much of the term you completed. For example, if you completed 30% of the term, you earn 30% of your aid. Once you have completed more than 60% of the term, you earn all the aid for that term.

You won't have to return any aid if you meet one of these conditions:

• You graduate.
• You successfully complete a class or multiple classes that make up at least 49% of the term (in a program with modules).
• You successfully complete a class or multiple classes that comprise at least half-time enrollment (in a program with modules).

If you didn’t get all the financial aid you earned, you might be eligible for a post-withdrawal disbursement. If this includes loan money, UVM needs your permission to give it to you. You can choose to decline some or all of the loan funds to avoid extra debt.

UVM might automatically use some or all of your post-withdrawal grant money for tuition, fees, and UVM food and housing. For other charges, UVM needs your permission to use the grant money. If you don’t give permission (some schools ask for this when you enroll), you’ll be offered the funds. But, it might be a good idea to let UVM keep the money to lower your debt with UVM.

Some Title IV funds you were supposed to get can't be given to you if you withdraw because of certain eligibility rules. For example, if you're a first-time, first-year undergraduate and you withdraw before completing the first 30 days of your program you won't get any Direct Loan funds you would have received if you stayed enrolled beyond 30 days.

If you, UVM, or your parent received extra Title IV funds that need to be returned, UVM has to return the lesser of:

1. UVM charges multiplied by the unearned percentage of your funds, or
2. The total amount of extra funds.

UVM has to return this amount even if we didn't keep this amount of your Title IV funds.

If UVM doesn’t have to return all the extra funds, you might have to return the rest. For any loan funds you need to return, you (or your parent for a Direct PLUS Loan) will repay them according to the loan terms (promissory note), meaning you won’t have to pay back the loan immediately but will make scheduled payments over time.

Any unearned grant funds you need to return are called an overpayment. The most you have to repay for a grant overpayment is half of the grant funds you got or were supposed to get. You don’t have to repay a grant overpayment if the original amount is $50 or less. You need to arrange with UVM or the Department of Education to return the unearned grant funds.

The rules for returning Title IV funds when you withdraw are different from UVM’s refund policy. So, you might still owe money to UVM for unpaid charges. UVM might also charge you for any Title IV funds it had to return. Learn more on the steps for officially withdrawing.