Step 2:
The Financial Aid Office must return federal aid based on the unearned percentage of aid, using the following formula:
Aid to be returned equals the amount awarded multiplied by the percent unearned.
Example:
Unearned Percent
(100 – 43) = 57
| Amount x Awarded*** |
Percent Unearned |
= |
Aid to be
Returned |
| $4,813 x |
57% |
= |
$2,743.41 |
***This award consists of:
| Federal Pell Grant |
$1,500 |
Student Loan
|
$1,313 |
PLUS Loan
|
$2,000 |
Based on the calculation of this example, we must return a total of $2,743.41.
The process in step 2 then involves
- return of the student loan in the amount of $1,313.
- return of the portion of the PLUS Loan in the amount of $1,430.41.
The results of the calculation process for this example differ for the student and parent.
- The student will not have a loan debt, since the loan was cancelled.
- The parent will have a federal loan debt, which needs to be repaid to the federal government.