Reduction in Financial Aid

Stay in Good Standing

To ensure you remain in good standing and receive all the financial aid resources available to you, review the following actions and issues that cause a decrease in the amount of financial aid you are eligible to receive. 

Dropping classes

If you drop below 15 credit hours prior to 5th week Monday of an academic term, your Financial Aid will be adjusted accordingly (see credits below). This includes federal, state and institutional aid. Please contact the Financial Aid Office for details as to how your financial aid will be impacted.

Student status

Full time - 15 credits or above
¾ time - 9 -14 credits
½ time - 6 - 8 credits

Five (5) credits or below are not eligible for Financial Aid

Withdrawing from Kettering University

If you withdraw from Kettering University, a portion of your financial aid may have to be refunded to the source. Sources may include the federal or state government, Kettering University, a private student loan lender and a private scholarship donor. Kettering University uses a formula provided by the U.S. Department of Education to determine the exact refund and its distribution. If you do not return to school (either Kettering University or another institution), you will be required to begin repayment on your Direct Loans and private student loans after a six-month grace period.

You should contact the Financial Aid Office prior to withdrawing to find out the amount of financial aid that will be returned to all sources. 

Not completing your financial aid file

If your financial aid file is not completed by the time you cease to be enrolled at least half time, you will forfeit your eligibility. If you fail to complete verification by the end of the academic year you will forfeit your eligibility. All required documents must be submitted and the process of verification completed before loans can be processed, need-based grants can be released to your account and Federal Work Study (FWS) jobs can be made available.

Back-to-back school terms

Attending two academic terms within one semester (July- December or January-June) may severely limit your aid eligibility. Be sure to speak with a Financial Aid representative if you are planning to do this.

Receipt of additional awards, such as scholarships, vouchers, fee waivers or other benefits

The student's total financial aid awards cannot exceed his or her cost of attendance. If you receive additional awards that put you over your cost of attendance or financial need, we will need to revise your financial aid package. We will reduce need-based loans and work study first but may also need to adjust other forms of gift aid (including state, institutional, and federal sources).

  • Dropping classes

    Dropping classes

    If you drop below 15 credit hours prior to 5th week Monday of an academic term, your Financial Aid will be adjusted accordingly (see credits below). This includes federal, state and institutional aid. Please contact the Financial Aid Office for details as to how your financial aid will be impacted.

    Student status

    Full time - 15 credits or above
    ¾ time - 9 -14 credits
    ½ time - 6 - 8 credits

    Five (5) credits or below are not eligible for Financial Aid

  • Withdrawing from Kettering University

    Withdrawing from Kettering University

    If you withdraw from Kettering University, a portion of your financial aid may have to be refunded to the source. Sources may include the federal or state government, Kettering University, a private student loan lender and a private scholarship donor. Kettering University uses a formula provided by the U.S. Department of Education to determine the exact refund and its distribution. If you do not return to school (either Kettering University or another institution), you will be required to begin repayment on your Direct Loans and private student loans after a six-month grace period.

    You should contact the Financial Aid Office prior to withdrawing to find out the amount of financial aid that will be returned to all sources. 

  • Not completing your financial aid file

    Not completing your financial aid file

    If your financial aid file is not completed by the time you cease to be enrolled at least half time, you will forfeit your eligibility. If you fail to complete verification by the end of the academic year you will forfeit your eligibility. All required documents must be submitted and the process of verification completed before loans can be processed, need-based grants can be released to your account and Federal Work Study (FWS) jobs can be made available.

  • Back-to-back school terms

    Back-to-back school terms

    Attending two academic terms within one semester (July- December or January-June) may severely limit your aid eligibility. Be sure to speak with a Financial Aid representative if you are planning to do this.

  • Receipt of additional awards, such as scholarships, vouchers, fee waivers or other benefits

    Receipt of additional awards, such as scholarships, vouchers, fee waivers or other benefits

    The student's total financial aid awards cannot exceed his or her cost of attendance. If you receive additional awards that put you over your cost of attendance or financial need, we will need to revise your financial aid package. We will reduce need-based loans and work study first but may also need to adjust other forms of gift aid (including state, institutional, and federal sources).

Return of Title IV Funds

Kettering University returns unearned funds received from federal student assistance programs to the proper program accounts or lenders in accordance with federal Title IV student assistance regulations, as amended, under 34 CFR, section 668.22 of the Reauthorization of the Higher Education Act of 1965.

A student receiving assistance from federal Title IV programs is required to complete a minimum number of days for which assistance was received.

  • If the student completely withdraws from all classes before completing 60% of the semester, a pro-rated portion of the federal aid received must be returned to the federal aid programs equal to the percentage of the semester remaining.
  • If the student remains enrolled and attends class beyond the 60% mark of the semester in which aid is received, all federal aid is considered earned and not subject to this policy.
    • If the student does not officially withdraw and stops attending all classes, a pro-rated portion of the federal aid received, based on the documented last date of attendance, must be returned to the federal aid programs. 

Return of Federal Title IV funds will be distributed according to statutory regulations. Worksheets/Formulas provided by the U.S. Department of Education will be used to determine the amounts and order of return. If a student's share of the return amount exists, the student will be notified and allowed 45 days from the date of determination to return the funds to the Business Office of the University for deposit into the federal programs accounts. If the student does not return the amount owed within the 45-day period, the amount of overpayment will be reported to the U.S. Department of Education (DOE) via the National Student Loan Database (NSLDS), and the student will be referred to the DOE for resolution of the debt. Unearned aid will be refunded to the appropriate program(s), if necessary based on these regulations.

Allocation of Returned Federal Funds 

  1. Federal Unsubsidized Direct Loan
  2. Federal Subsidized Direct Loan
  3. Federal PLUS Loan
  4. Federal Pell Grant
  5. Federal SEOG Grant
  6. Other Title IV Aid