1. (a) Withdrawal from Enrollment.

   1. (1) Gift Aid. If a student officially withdraws from enrollment, then the institution shall reduce the student's gift aid by the same percentage by which the student's tuition has been reduced per the institution's general institutional refund policy.
   2. (2) Loans. If a student officially withdraws from enrollment, the institution shall recalculate the student's cost of attendance to determine whether an adjustment to the student's state-funded loan aid is warranted.
   3. (3) If the student withdraws or drops classes after the end of the institution's refund period, no refunds are due to the program(s) from which the student received financial assistance.

2. (b) Over Awards.

   1. (1) An over award occurs when a student's total financial assistance (including the student's state-funded and additional financial assistance) exceeds his/her financial need.

   2. (2) If an over award occurs, the institution shall resolve the over award by recalculating the student's amount of state-funded financial assistance in accordance with the institution's procedures, except the institution is not required to recalculate the student's financial aid if:

      1. (A) the over award occurred after state-funded financial assistance has been disbursed because the student received additional financial assistance that was not factored into the institution's estimate of his/her financial need; and
      2. (B) the student's total financial assistance exceeds his/her need by $300 or less.

3. (c) Ineligibility.

   1. (1) If an institution determines that a student is ineligible for financial assistance from one or more programs in this chapter after receiving financial assistance from the program(s), the institution shall adjust the student's financial aid in accordance with the institution's procedures to either resolve the eligibility issue or remove the student from the program(s).
   2. (2) An institution may distribute gift aid funds for which a student has been deemed ineligible to a different eligible student or return the funds to the Coordinating Board in accordance with §22.2(a)(2) of this subchapter (relating to Timely Distribution of Funds).
4. (d) If, for some reason not already specified in this section, the amount of a student's disbursement exceeds the amount the student is eligible to receive, the institution shall recalculate the student's financial aid accordingly.

Source Note:The provisions of this §22.8 adopted to be effective May 15, 2025, 50 TexReg 2786.