When am I responsible for repaying my federal loans?
Here are some common situations where you may be required to pay back your Federal Title IV and Campus-Based funds:
- Withdraw from all classes either officially or unofficially
- Are dismissed from the University
- Leave the University before finishing 60% of the current semester
How does Coppin determine what I owe?
Federal law requires Coppin State University’s Office of Financial Aid (OFA) to use this formula to calculate what you owe.
(100% of total funds - percent (%) earned) x funds dispersed = $$ of aid you must repay
One of the numbers in the recalculation formula is percent earned. Here’s what it means and how we calculate it:
Percent earned = number of calendar days completed up to and including the withdrawal date ÷ total number of days in the semester/quarter
Per federal law, we have to consider scheduled semester breaks in recalculation. This means OFA excludes all breaks longer than 5 days, like Thanksgiving Recess, Christmas, or Spring Break, in our recalculation formula. Those scheduled breaks do not affect the amount of federal student aid earned.
What should I know about returning Title IV funds?
The U.S. Department of Education requires the return of Title IV funds paid to the school for “unearned” institutional charges. And you do not have to repay aid from federal programs you did not accept. OFA tells your loan service provider of your enrollment change within 30 days.
You have 45 days from the date OFA notifies your loan service provider of your withdrawal or dismissal to repay your funds. Refer back to your legally binding Master Promissory Note (MPN) for the terms and conditions of your repayment. Title IV funds must be repaid in the order they are dispersed at Coppin:
- Unsubsidized Direct Stafford Loan
- Subsidized Direct Stafford Loan
- Direct Graduate Student or Parent PLUS Loan
If part of your unearned Title IV funds includes a federal grant, you don’t need to repay more than 50% of the initial amount you’re responsible for repaying.
What happens if I don’t repay Title IV funds I owe?
OFA may report to the National Student Loan Data System (NSLDS) that you received an overpayment—which may affect your eligibility to receive additional Title IV aid for any school until resolved.
Sometimes OFA returning federal financial aid funds to the U.S. Department of Education creates a bill in the Office of Student Accounts. Remember this bill must be paid, or Student Accounts may send it to collections.
What is a post-withdrawal disbursement?
At times, you may be eligible for Title IV funds that have not been disbursed. Any student eligible for federal financial aid will automatically have these funds credited to their outstanding charges. If you are eligible for any grant funds, you will receive these funds first.
OFA notifies you about your loan eligibility if you don’t have any outstanding charges or you have a balance on your student account after disbursement. You have 14 days to respond to OFA’s notification about wanting all, part, or none of the loan(s). If you don’t respond, you will not receive the loan disbursement.
OFA considers several factors before calculating when a loan gets cancelled. A loan gets automatically cancelled if any of the following occur:
If you are a student selected for verification, and have not completed it, you are not eligible for federal financial aid, and therefore not included in this policy. Learn more about verification.
What is exit counseling—and do I need it?
Everyone who receives federal financial aid must complete exit counseling. The purpose is to help you prepare for loan repayment and personal money management.
Exit counseling covers important information on your rights and responsibilities regarding your student loan(s). Topics covered include:
Depending on your loan(s), exit counseling may be completed online or in person. Regardless, come prepared knowing the types of loans you have from your time at Coppin. Use your FSA User ID to login into the National Student Loan Data System (NSLDS) to access all of your loan information.
You are required to repay your student loans, so if you are having difficulty with payments, please reach out to your loan service provider.
- A Stafford Loan promissory note has not been signed and submitted by the student before date of withdrawal
- A student has not completed the Stafford Loan entrance loan interview before date of withdrawal
- A first-time Coppin student withdraws from the University during the first 30 days of the semester
- Your rights and responsibilities as a recipient of federal financial aid
- Consequences of loan nonpayment
- Repayment options
- Debt management possibilities
- Loan consolidation
Depending on your loan(s), exit counseling may be completed online or in person. Regardless, come prepared knowing the types of loans you have from your time at Coppin. Use your FSA User ID to login into the National Student Loan Data System (NSLDS) to access all of your loan information.
You are required to repay your student loans, so if you are having difficulty with payments, please reach out to your loan service provider.
