Federal Funds Return Policy | gotoLTC

Federal Funds Return Policy

Complete Withdrawals

Federal law specifies how a school determines the amount of federal financial aid students have earned and how much must be repaid to the federal aid programs when the student withdraws from school during the semester. According to federal regulations, the amount of aid earned will be calculated on a pro-rata (percentage) basis. The percentage earned equals the number of calendar days completed before withdrawal divided by the total number of calendar days in the enrollment period.

When a student has received federal financial aid in excess of the percentage earned, the funds must be returned to the federal financial aid programs. The student may be responsible for repayment of unearned financial aid in addition to any fees owed to the college.

Pro-rata return of Federal funds is required if the withdrawal occurs before sixty percent (60%) of the semester has elapsed.

When a student withdraws:

  • Processing of the withdrawal and calculation of any amounts to be repaid be completed when all account adjustments are received in the Student Billing Office
  • The College is required to repay to the federal aid programs the percentage of unearned aid that was used to pay the student's account. As a result, the student may have a balance due on their student account.
  • The Financial Aid Office and Student Billing will then send notification to the student of any amounts due the College and/or the federal aid programs. Payment for any amounts due are to be made to Lakeshore Technical College.
  • Amounts to be repaid will be added to the student's account. The student will receive bills according to the College's regular billing schedule. The student's college records will be restricted, and the student will not be eligible for further federal financial aid until all amounts are paid in full.

Partial Withdrawals

If a financial aid student withdraws from one or more classes but not all, the financial aid aid office is required to evaluate whether the withdrawal affects the student's financial aid eligibility.

  • 100% Refund on a class - financial aid credit load will be reduced to reflect new enrollment status. Financial aid may be adjusted downward and student may owe. Credits will not be counted in Satisfactory Academic Progress.
  • 80%, 60% or 0% Refund on a class (prior to census date) - financial aid will be adjusted downward to reflect new enrollment status. Credits will be counted in Satisfactory Academic Progress.
  • 80%, 60% or 0% Refund on a class (after census date) - financial aid will not be adjusted and credits will be counted in Satisfactory Academic Progress.

We encourage all financial aid recipients to contact the Financial Aid Office prior to dropping any classes to determine the effect on their financial aid.