Schools are required to determine the earned and unearned portion of Title IV aid when a student withdraws before the course completion date. Federal Law determines how a school calculates the amount of Title IV funding that a student has earned prior to withdrawal from a clock hour program. This is done by dividing the clock hours scheduled to have been completed as of the withdrawal date in the period by the total clock hours in the period. If the amount is greater than 60% then 100% of Title IV assistance has been earned. If the amount is less than or equal to 60%, the percentage of Title IV aid earned is multiplied by the amount of aid disbursed and that could have been disbursed. LWT considers the withdrawal date as the last date of attendance.
If a student has received less Title IV aid than the amount earned LWT will complete a Post-Withdrawal Disbursement. The school will notify the student or parent (for a Direct Parent Plus) prior to making a post-withdrawal disbursement of loan funds within 30 days of the withdrawal date determination by the school.
If a student received more Title IV funds than were earned, the student, the school, or both must return the funds to the Department of Education. If funds are returned to the Department of Education by the school, the student may owe outstanding fees or tuition to the school. A school returns Title IV funds to the programs from which the student received aid up to the net amount disbursed from each source. LWT can accept Title IV funds from the Direct Loan program and the Direct PLUS Loan program only. The Department of Education specifies that a school return funds is a specific order, up to the net amount disbursed from each source and for LWT the order is Unsubsidized Direct Loan, Subsidized Direct Loan, and the Direct PLUS Loan.