Return of Title IV Financial Aid Policy
The Return of Title IV Financial Aid Policy applies to a student who receives Title IV financial aid assistance and officially or unofficially withdraws. It also applies to a student scheduled to receive financial aid assistance and stopped participation before the Census Date. Title IV financial aid assistance includes the Federal Pell Grant, Federal Supplemental Education Opportunity Grant (SEOG), Federal Direct Loans (subsidized and unsubsidized), and PLUS Loans for parents. Lakeshore utilizes the Department of Education's worksheet for credit hour programs to determine earned vs. unearned aid and completes all calculations within 30 days of notification of the withdrawal.
The order in which Title IV funds must be returned is Unsubsidized loans, Subsidized loans, Perkins loans, Plus loans, Pell grants, and then SEOG or other Title IV funds. Funds must be returned within 45 days from the date of determination.
Post-withdrawal disbursement funds will be applied to the student's account and pay off any institutional charges. Any remaining funds will be refunded to the student.
If the R2T4 calculation results in a credit balance on the student’s account, the credit balance must be disbursed as soon as possible and no later than 14 days after the calculation of R2T4.
Official Withdrawal - withdrawal from a course (but not all courses):
If a student withdraws from one or more courses, but not all classes before the Census Date, financial aid will be adjusted to reflect the accurate credit load as of the Census Date. The Census Date is the Sunday before the first day of disbursement for fall and spring. For summer, the census date is the first Sunday in July. If a student withdraws before financial aid is disbursed, a post-withdrawal disbursement may be due to the student.
Federal grant funds will be disbursed to the student account within 45 days of withdrawal. If the post-withdrawal disbursement calculation includes federal direct student loans, the school will notify the student within 30 days to receive permission to disburse the loan. Permission must be given within 14 days, including the dollar amount, as well as complete the remaining loan requirements.
If a student withdraws after the Census Date and has not participated in the course, financial aid will be recalculated. If the R2T4 calculation results in an amount to be returned that exceeds the school’s portion the student must repay some funds.
Unofficial Withdrawal - Complete withdrawal of all courses:
If a student withdraws from all courses before 60% of the term for standard courses or 49% of the term for modular courses has been completed or does not officially withdraw and receives all failing grades for the term (unofficially withdraw), the Return of Title IV Policy goes into effect. Once more than sixty percent participation in a standard course or forty-nine percent participation in a modular course of the payment period has been completed, all financial aid assistance is considered earned for the courses in which the student participated. Typically, the 60% or 49% point is early June for the summer term; early November for the fall term; and late March for the spring term.
The amount of federal financial aid assistance that the student earns is determined on a pro rata basis. The pro rata basis determines earned and unearned aid and is based on the official or unofficial withdrawal date. The official or unofficial withdrawal date is defined as the actual date of beginning the institution’s withdrawal process or the last date of academically related activity. The last date of academically related activity is recorded by instructors upon grading. When a student receives federal financial aid more than earned aid:
- The school returns the lesser of: a) Institutional charges multiplied by the unearned percentage, or b) Title IV federal financial aid disbursed multiplied by the unearned percentage
- The student returns: a) Any remaining unearned aid not covered by the school b) Any loan funds are repaid in accordance with the terms of the promissory note. That is, scheduled payments to the holder of the loan over a period of time. c) Any grant amount that is a grant overpayment, and arrangements must be made with the school or Department of Education within 45 days. (If the overpayment is $50 or less, repayment is not required).
Failure to begin participation in any enrolled courses will result in a loss of all financial aid. If you are required to repay aid, you will be billed. Contact Student Billing at studentbilling@gotoltc.edu to make payment arrangements. Failure to pay Lakeshore may result in late fees and collection efforts, including the Tax Refund Intercept Program (TRIP) and State Debt Collection (SDC).
