Return of Title IV Funds Policy

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. The student or parent (for Direct Parent Plus Loan) has 14 days to respond. If the student is eligible for a Post-Withdrawal Disbursement of Federal Grant monies LWT will still notify the school but does not need to give the student 14 days to respond since it is grant money. All post-withdrawal disbursements are applied to the students account first, and any credit balance will be disbursed to the student no later than 14 days after the calculation of the R2T4.  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.

If a student is terminated or withdraws after a disbursement is made but before he/she receives the overage check the amount of the overage check will be send back to Department of Education along with any unearned monies determined by the R2T4.

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 is eligible to award Title IV funds from the Federal Pell Grant Program, 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, the Federal Pell Grant Program.

Return of unearned funds which the student is responsible for must be returned to the Department of Education within 45 days.  If a student does not make the restitution, nor has made a satisfactory repayment plan, the school must notify the Department of Education of the situation, by the 45th day.

Return of unearned funds which the school is required to repay must be returned to the Department of Education within 45 days of the date of determination that the student withdrew from the program.  LWT must perform R2T4 calculation within 30 days after the date of determination.

Terms and Conditions: Students will be notified by LWT of any repayment owed.  All repayments are due and payable by the date specified in the repayment notice.  If necessary, other arrangements for payment can be made by the Financial Aid Administrator or Business Office.  Until the repayment is made in full, the student will not be eligible for future Title IV aid at any school and Financial Aid Transcripts will be marked to indicate that the student owes a repayment on a Title IV program.