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Return of Federal Funds

Federal law specifies how a school must determine the amount of financial aid that a student earns if he/she withdraws, drops out, or ceases to attend classes before completing 60% of the term. The student's eligibility will be recalculated to determine the percentage of aid he/she has earned. The student may be required to return some of the federal aid that he/she received. The amount of aid a student can keep is proportional with the amount of time the student attended class(es) to the total days in the semester.

Class drops with a 100% refund is when a class is removed from a student's schedule by Gateway and they are not charged for the class, financial aid will be recalculated based on actual eligible credits remaining on the course schedule. Classes dropped by you will be monitored throughout the entire semester.

Failure to attend any class(es) means a 100% return of all financial aid disbursed. The Financial Aid Office will adjust student's financial aid based on actual eligible credits remaining on their schedule. Gateway will repay to the federal aid funds a proportional part of your tuition that was originally paid with federal aid. These funds would then need to be repaid to Gateway by the student. Any return of tuition will go to the following funds in priority order: (1) Stafford Loan (unsubsidized), (2) Stafford Loan (subsidized), (3) PLUS Loan, (4) Pell Grant, (5) SEOG Grant, (6) TIP Grant.

Poor attendance has a direct impact on how well you will do in a class. In a situation where an instructor drops a student from the class they are teaching because the student has poor attendance, there is no refund on tuition. However if the student is dropped from all classes in that term, the Financial Aid Office is required to adjust the student's financial aid based on actual eligible credits remaining on their schedule.

If a student intends to drop a class, they will need to notify Student Services so that they can be officially withdrawn from the class. They cannot simply stop attending. Additionally, students are reminded to notify the Financial Aid Department if they decide to withdraw so that a correct financial aid calculation can be made.

If a student stops attending but fails to officially withdraw or drop a class(es), they will be responsible for all debt incurred.

Furthermore, when financial aid is returned, they will owe a balance to Gateway. Payments should be made via WebAdvisor or at any Student Services Center.