Return of Title IV Financial Aid Policy
Withdrawal from a course:
If a student withdraws from one or more courses and not a complete withdrawal, prior to the Census Date (the 14th day of the semester), financial aid will be adjusted to reflect the accurate credit load at the time of disbursement. If a student withdraws after the Census Date with a 100% tuition refund, financial aid will be adjusted and repayment of financial aid may be required.
Complete withdrawal of all courses:
If you withdraw from school before more than sixty percent (60%) of the term has been completed, or you do not officially withdraw and receive all failing grades for the term, the Title IV Return Policy goes into effect.
The amount of federal financial aid assistance that the student earns is determined on a pro rata basis. Once you have completed more than sixty percent (60%) of the payment period, all financial aid assistance is considered earned. Federal financial aid includes the Federal Pell Grant, Federal Supplemental Opportunity Grant (SEOG), Talent Incentive Program (TIP) grant, Stafford Loans (subsidized and unsubsidized) and PLUS Loans for parents.
The withdrawal date is defined as the actual date that you begin the institution’s withdrawal process, the last date of academically related activity, or the midpoint of the payment period if you leave without notifying the institution. When you receive federal financial aid in excess of earned aid:
1. 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
2. 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 you have to return is a grant overpayment, and arrangements must be made with the school or Department of Education.
If you are required to repay aid, you will be mailed a repayment letter, as well as a bill. This letter will state the amount of unearned aid you received that you will need to return to LTC. You will have 45 days from the date of the letter to make the repayment. After that date, your account will be turned over to a collection agency. You will be able to set up payment arrangements with them.
