RETURN OF TITLE IV FUNDS
(REFUNDS AND REPAYMENTS)
In cases of student full withdrawal during the first 60% of the term, semester, or billing period, the U.S. Department of Education requires the return of a portion of Title IV funds (Federal Stafford loans, Federal Perkins loans, PLUS, Federal Pell Grant, and SEOG). The percentage of such funds considered “earned” by the student is determined by dividing the number of days prior to withdrawal by the total number of days in the term, semester or billing period, with the results expresses as a percentage rounded to the second decimal point.
The remaining percentage is considered “unearned”. The unearned percentage is applied first to applicable fees. The school returns this percentage to the federal aid programs. If this percentage of fees exceeds Title IV aid, the amount in excess of Title IV is generally returned first to other aid programs, with any remaining excess returned to the student. Unearned funds will be returned to the appropriate Title IV program no later than 45 days after the withdrawal date.
If the Title IV aid exceeds the amount of applicable fees, the unearned percentage is applied to the funds in excess of fees. The student repays unearned loan funds in excess of applicable fees on the normal repayment schedule. However, the student is responsible for repaying 50% of the calculated unearned grant funds not attributable to the returned applicable fees.
Unearned funds are attributed to Title IV programs in the following order:
- Federal GRAD PLUS
- Federal Unsubsidized Stafford Loans
- Federal Subsidized Stafford Loans
- Federal Perkins Loans
- Federal PLUS Loans
- Federal Pell Grant
- Federal Supplement Grants (FSEOG)
- Other applicable Title IV aid
Withdrawal date is the student begins the official “Termination of Enrollment” process or otherwise officially notifies their school’s the Student Affairs Office of their intent to withdraw. For unofficial withdrawals, the latter of the 50% point in the enrollment period or the last documented date of a student’s educational activity (such as an exam, lab assignment, or academic advisement appointment) is used. The first day of a leave of absence is considered the withdrawal date for financial aid purposes, unless the student is granted a special exemption based on the nature and length of the leave and their ability to return during the same academic period and resume studies without incurring any additional financial liability.
A post-withdrawal disbursement is the Title IV aid that was not disbursed before a student withdrew, but which the student has earned based on a Return of Title IV funds calculation. Post withdrawal disbursements are made no later than 120 days after the withdrawal date. The amount of a post-withdrawal disbursement is determined by following the requirements for calculating the “earned” Federal Student Aid funds.
To qualify for a post-withdrawal disbursement, a withdrawn student must receive a SAR/ISIR with a valid EFC prior to the withdrawal date and meet the following program specific conditions:
1. For Pell Grant: No other requirements.
2. For SEOG and Perkins: An award made prior to the student becoming ineligible.
3. For Stafford, GRAD PLUS, and PLUS: A loan application certified by the LSUHSC-Shreveport Financial Aid Office.
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