Withdrawal or Leave of Absence

Prior to the start of the quarter: Students who withdraw or go on Leave of Absence (LOA) before the first day of instruction will have 100% of their financial aid canceled and (if applicable) refunded to various aid program(s).

If after the quarter begins, a student completely withdraws or goes on LOA during any point in the quarter, the university is required to use a specific formula established by the federal government to calculate the amount of student aid that the student has “earned” up to the point of their withdrawal or leave date. If a student receives more aid than what they earned, the excess funds will need to be returned. Further, the responsibility for returning unearned aid is jointly shared by PAU and by the student. Be aware that sometimes the returning of funds creates a balance owed to the school by the student.

The Office of Financial Aid will notify the student if any financial aid funds will need to be returned. In addition, if a student borrowed federal loans while attending Palo Alto University, they will be required to complete Exit Loan Counseling online at https://studentaid.gov/exit-counseling. This exit loan counseling will ensure that the student understands their rights and obligations of borrowing through the direct student loan program.

The PAU Registrar will report the change in enrollment status to the Student Loan Clearinghouse who in turn reports the information to the student’s loan servicer. It should also be noted that if a student’s leave of absence is longer than 180 days, PAU is required to report the student as withdrawn. As such, the student may be on an approved leave of absence at PAU, but their enrollment status at their loan servicer may be withdrawn.