5.12.20 – Procedure – Return of Title IV Funds
Part 1. General
This policy applies to students who officially or unofficially withdraw from all courses for which they are enrolled for the term and who have received Title IV funds for the term. If a student completely withdraws from all credits before the 60 percent point of the semester, his/her financial aid is subject to the “Federal Return to Title IV” refund policy. Under this policy, students earn financial aid in proportion to the time they are enrolled up to the 60 percent point. The unearned share of the federal financial aid must be returned to the program from which it was paid as prescribed by federal regulations.
The term “officially withdraw” refers to those students who complete the withdrawal process by withdrawing from all courses using the web, touch-tone registration system, or by completing the appropriate form.
The term “unofficially withdraw” refers to those students who stop attending all of their courses without withdrawing from all courses using the web or without completing the appropriate form.
The term “Title IV Funds” refers to the subsidized Direct (Stafford) loans, unsubsidized Direct (Stafford) loans, Federal Pell Grants, MN State Grants and Federal SEOG.
Notifying the College of the intent to withdraw
The college is notified of a student’s intent to officially withdraw by one of the following methods:
a. The student withdraws from all courses for the term using the web registration system. The last date the student withdraws from a course during the term is considered to be the date the student began the withdrawal process.
b. The student completes and submits the appropriate withdrawal form in person at the Student Services Center. The “received” date stamped on the form is considered the date the student began the official withdrawal process.
A student’s withdrawal date is defined as:
a. The date the student began the College official withdrawal process as specified above, or
b. The midpoint of the term when a student unofficially withdraws without notifying the College, or
c. The student’s last date of attendance at a documented academically-related activity if this date falls later than the date established in “a” or “b” above.
All Title IV funds will be refunded if the College cannot document that a student attended any classes within the term.
Post Withdrawal Disbursement: In some cases, a student may withdraw from all courses before aid has disbursed. A post withdrawal disbursement is done when a student shows they have withdrawn from all of their classes prior to financial aid disbursement but began attendance in all courses and are qualified for some (earned) aid.
For Pell grant eligibility only, the earned portion of the grant is disbursed to the student account and a letter is sent to student to notify them of their eligibility and right to return funds within 45 days on the date letter was issued.
The calculation of the return of Title IV funds
The return of Title IV funds for all charges including tuition and special fees will be prorated on a per diem basis based on the calendar days in the term up to and including the 60% point in the semester. There is no return of Title IV funds after that point.
In accordance with federal regulations, refunds are allocated in the following order:
- Unsubsidized Direct loans
- Subsidized Direct loans
- Direct PLUS loans
- Federal Pell grants
- MN State grants
- Federal SEOG
Students will be notified in writing, mailed to last-known permanent addresses, of all refunds and charges following withdrawal.
College and Student Responsibilities
Lake Superior College responsibilities in regard to the return of Title IV funds include:
- providing each student with the information given in this policy,
- identifying students who are affected by this policy and completing the Return of Title IV funds calculation for those students, and
- returning to Title IV programs any Title IV funds that are due within 45 days of determining an official or unofficial withdrawal date.
Student responsibilities include:
- notifying the College of the student’s intent to withdraw from all courses, and
- returning to Title IV programs any funds that were disbursed directly to the student and for which the student was determined to be ineligible through the Return of Title IV Funds calculation.
Date Implemented: April 5, 2001
Date Updated: February 22, 2016