If a student withdraws after 60% of the term has been completed, no funds are returned to the federal or state government; of course, student loans must still be repaid according to the terms of the promissory note. If a student begins attendance but withdraws on or before 60% of the quarter has been completed, the amount of federal aid that must be returned by the school is based on the percentage of "unearned" aid compared to the institutional charges incurred by the student. The amount that must be repaid by the student is the remaining "unearned" amount comprised of federal grant funds after 50% of federal grant is protected and the student is permitted to repay any loan funds according to the terms of the loans promissory note. Similarly, if the student begins attendance but withdraws on or before the mid-point of the quarter, the student is responsible for repaying 50% of any unearned state grant funds.