Return of Funds Calculation

Scenario

Hokie Byrd enrolled for the fall term as a full time student. The Bursar’s office applied Virginia Resident tuition charges of $5,044 and fees of $964.50 to the student’s account. Therefore, the student had a balance due for fall term of $6,008.50. Based on the Free Application for Federal Student Aid (FAFSA) data, Hokie had the following aid disbursed for the fall term:

Financial Aid Award

At the beginning of the term, the student is due a refund, because Hokie Byrd owed the school $6,008.50 but received $8,586 worth of aid for the same term. Therefore, once the aid is applied to the student’s account, Hokie had a credit balance of $2,577.50 ($8,586 - $6,008.50 = $2,577.50 refund to student). Federal and state regulations require that the student use the refund to pay for educationally-related expenses only.

Three weeks into the semester, Hokie resigns for personal reasons. The student’s resignation date is September 13^th.

Aid changes to be made by Financial Aid (USFA)

Based on the student’s financial aid and resignation date, USFA would return the following amounts for the listed funds. 

(Note: these are estimated figures for this example; actual figures may be different.  For actual figures, please contact University Scholarships and Financial Aid.)

• $990 Unsubsidized Federal Direct Stafford Loan
• $2,721 Subsidized Federal Direct Stafford Loan
• $2,337 Pell Grant
• $800 Commonwealth Award
• $250 Virginia Tech Grant

Since the resignation date falls at the end of the 3^rd week, the Bursar’s office would remove 50% of the student’s current tuition charges. See the University Bursar website for the actual schedule of percentages.

Recall that in this example Hokie Byrd had been charged $6,008.50 for tuition and fees and had received $8,586 worth of financial aid. Since he had more financial aid on his account than charges, a refund was issued for $2,577.50. Once the refund was issued, his account balance was $0.

Hokie Byrd resigned from the term on September 13^h. In this example, the resulting actions taken by the Financial Aid office and Bursar’s office results in Hokie Byrd owing the University.

Example Summary