WITHDRAWALS/RETURNS OF TITLE IV FUNDS
This policy applies to students who complete 60% or less of the enrollment period (i.e., Fall, Spring or Summer session) for which they received Federal Title IV aid. A student who drops a class but still completes one or more classes does not qualify for the Return of Title IV Funds policy. The term "Title IV aid" refers to the following Federal financial aid programs: Unsubsidized Federal Stafford loans, Subsidized Federal Stafford loans, Federal Perkins loans, Federal PLUS (Parent) loans, Federal Pell Grants, and Federal SEOG (Supplemental Educational Opportunity Grant). To conform with the policy, Our Lady of the Lake University must determine the student’s withdrawal date. The withdrawal date is defined as:
1. The date the student began the withdrawal process or officially notified Our Lady of the Lake University of their intent to withdraw; or
2. The last date of attendance at an academically-related activity by a student who doesn’t notify Our Lady of the Lake University
The calculation required determines a student’s earned and unearned Title IV aid based on the percentage of the enrollment period completed by the student. The percentage of the period that the student remained enrolled is derived by dividing the number of days the student attended by the number of days in the period. Calendar days (including weekends) are used, but breaks of at least 5 days are excluded from both the numerator and denominator. Until a student has passed the 60% point of an enrollment period, only a portion of the student’s aid has been earned. A student who remains enrolled beyond the 60% point is considered to have earned all awarded aid for the enrollment period. Earned aid is not related in any way to institutional charges. In addition, the University’s refund policy and Return of Title IV Funds procedures are independent of one another. A student who withdraws from a course may be required to return unearned aid and still owe the college for the course. For more information on the Our Lady of the Lake University withdrawal and institutional charges’ policies, please consult the website. The responsibility to repay unearned Title IV aid is shared by Our Lady of the Lake University and the student. For example, the calculation may require Our Lady of the Lake University to return a portion of Federal funds to the Federal Title IV programs. In addition, the student may also be required to return funds based on the calculation. A student returns funds to the Federal Stafford loan programs based on the terms and conditions of the promissory note of the loan. A student who receives a Federal Pell Grant may be required to repay 50% of the funds received. The return of Federal aid is in the following order: Unsubsidized Federal Stafford loans, Subsidized Federal Stafford loans, Federal Perkins loans, Federal PLUS (Parent) loans, Federal Pell Grants, Federal SEOG (Supplemental Educational Opportunity Grant).
How to Handle an Overpayment
Students who owe funds to a grant program are required to make payment of those funds within 45 days of being notified that they owe this overpayment. During the 45 day period students will remain eligible for Title IV funds. If no positive action is taken by the student within 45 days of being notified, Our Lady of the Lake University will notify the U.S. Department of Education of the student’s overpayment situation. The student will no longer be eligible for Title IV funds until they enter into a satisfactory repayment agreement with the U.S. Department of Education. During the 45-day period, the student can make full payment to Our Lady of the Lake University of the overpayment. The college will forward the payment to the U.S. Department of Education and the student will remain eligible for Title IV funds. Please make check payable to Our Lady of the Lake University, Attn: Student Business Office. Please attach the enclosed remittance coupon to assure proper credit.
If a student is unable to pay their overpayment in full, they can set up a repayment plan with the U.S. Department of Education. Before doing this please contact the Our Lady of the Lake University Office of Financial Aid. You will need to make sure we have referred your situation to the U.S. Department of Education before any repayment plan can be set up. If you want to contact the U.S. Department of Education, their address is listed below. U.S. Department of Education Student Financial Assistance Programs P.O. Box 4222 Iowa City, IA 52245 Phone: 1-800-621-3115 E-Mail: DCS_HELP@ed.gov For examples of the Return of Title IV Funds calculations or questions regarding the overpayment policy, please contact the Office of Financial Aid.
Summary Policy in Financial aid Dataform
Return of Title IV Funds Policy
• If you withdraw or otherwise terminate your enrollment during the first 60 percent of the semester or session, and you receive financial assistance from Title IV programs (Academic Competitiveness Grant, Federal Pell Grant, Federal Supplemental Educational Opportunity Grant, Federal Perkins Loan, Federal Stafford Loan, and Federal PLUS Loan), you earn Title IV funds in direct proportion to the length of time you were enrolled. The percentage of time during the period that you remained enrolled is the percentage of disbursable aid for the semester/session that you have earned. The percentage of the period that you remained enrolled is derived by dividing the number of days you attended by the number of days in the semester/session. Calendar days are used, but breaks of at least five concurrent days are excluded from the calculation.
• Title IV program reimbursement monies will be withheld from any institutional refunds (tuition, room, board, fees, etc.) due to you. If these monies are not sufficient to cover the reimbursement required, you will be billed for the remaining amount. Failure by you to comply with this Return of Title IV Funds Policy will make you ineligible to participate in any Title IV aid program from any post-secondary institution until you become compliant with the Return of Title IV Funds policy.
• The federal government has established the following priority for the distribution of unearned aid: Unsubsidized Stafford loan, Subsidized Stafford loan, Federal Perkins loan, PLUS loan, Federal Pell Grant, ACG, SMART and FSEOG.