Aid Disbursement and Refunds

Loans

Federal Direct Unsubsidized Loans are sent directly from the U.S. Department of Education to The Chicago School and applied to your student account approximately one week before the start of each term. Private loan funds are typically delivered to the university electronically and applied to your tuition account upon receipt.

A note for students borrowing federal loans for the first time: before your loan funds can be disbursed, you must complete Entrance Counseling and sign a Master Promissory Note (MPN) at studentaid.gov. These are one-time requirements and typically take less than 30 minutes. If you haven’t completed these steps yet, your funds may be delayed. So, make sure to take care of them as early as possible.

Please note: due to recent changes under the One Big Beautiful Bill Act (OBBBA), Graduate PLUS Loans are no longer available to new borrowers for terms beginning on or after July 1, 2026. If you have questions about how this affects your loan disbursement, please contact our financial aid office.

Complete Entrance Counseling & MPN at studentaid.gov 

Refunds

You will receive a refund when the total financial aid applied to your account exceeds your charges for the term. This is money you can use to cover indirect costs like housing, books, transportation, and other living expenses.

A few important things to keep in mind before spending a refund:

Because tuition, fees, and aid disbursements can all fluctuate due to enrollment changes, adjustments to institutional scholarships or grants, and other factors, your refund amount may change from what you initially expected. We strongly encourage you to confirm that your refund is accurate before spending any of those funds. An unexpected adjustment later could result in a balance you’ll need to repay.

The fastest and most reliable way to receive your refund is through direct deposit. If you haven’t already set this up, we recommend doing so early in your enrollment. This will save time and ensure your funds reach you as quickly as possible.

Return of Funds

Federal regulations require The Chicago School to determine how much of your Title IV federal aid you have “earned” based on how long you were enrolled during the term. If you withdraw from all courses or fail to earn a passing grade in at least one course, any unearned federal aid must be returned to the U.S. Department of Education. Depending on the timing of your withdrawal, this could result in an outstanding balance on your student account that you will be responsible for paying.

Contact Financial Aid Before Withdrawing 

Title IV federal aid covered by these rules includes Federal Direct Unsubsidized Loans. Please note that due to recent changes under the One Big Beautiful Bill Act (OBBBA), Graduate PLUS Loans are no longer available to new borrowers for terms beginning on or after July 1, 2026, though they remain part of the return of funds calculation for eligible continuing borrowers.

We know this can feel complicated. Please don’t navigate it alone. If you are thinking about withdrawing or taking a leave, contact us first so we can walk you through the numbers before any decisions are finalized.

How Earned Aid is Calculated

You earn Title IV aid in proportion to the amount of the term you were enrolled but only up to the 60% point of the term. After that point, all aid for the term is considered fully earned, and no return is required.

The percentage of the term you completed is calculated by dividing the number of days you were enrolled by the total number of days in the term. Your last day of attendance is defined as either:

• The date you officially began The Chicago School’s withdrawal process, or
• The last date you participated in an academically related activity, such as attending class in person or online, completing an assignment, taking an exam, or participating in a lab, confirmed by a faculty or staff member 

If you leave without completing the official withdrawal process and a last date of attendance cannot be determined, federal regulations require The Chicago School to use the midpoint of the term as your official last date of attendance. This is one of several reasons why following the formal withdrawal process matters. By taking these initial steps, it protects you from having an earlier date assumed, which could result in more aid being returned than necessary.

Order in Which Unearned Funds Are Returned

Federal law specifies the order in which unearned Title IV funds must be returned to the government. The Chicago School is responsible for returning these funds in the following sequence:

1. Direct Unsubsidized Loan

2. Direct Grad PLUS Loan (for eligible continuing borrowers)

3. TEACH Grant

Any funding received through Federal Tuition Assistance programs is returned separately from Title IV funds and follows its own process. In addition to a reduction in federal aid, students who cease enrollment in all coursework may also see a reduction in institutional aid.

A Few Important Things to Know

We want to make sure you go into this process with a clear picture of how it works:

• The Chicago School is responsible for calculating how much Title IV aid you have earned. We follow the federal formula. Please note, we don’t have discretion to change the outcome, but we can help you understand it.
• Federal Title IV funds are always applied first to direct institutional charges such as tuition, fees, and applicable room and board, as they stood before your withdrawal date. These charges reflect what was owed prior to withdrawal and may not reflect any tuition adjustment your school makes separately.
• If the return of unearned funds creates a balance on your account, that balance is your responsibility and will need to be resolved promptly. 

If you have any questions about how a withdrawal or leave of absence would affect your specific aid package, please reach out before you make any decisions. We would much rather help you plan than have you face unexpected consequences after the fact.