Federal Funds Withdrawal Policy
The 1998 Reauthorization of the Higher Education Act requires the college to calculate a Return of Title IV Funds on all federal financial aid students who withdraw (officially or unofficially) from all classes on or before the 60% attendance point of the semester. A pro-rated schedule is used to determine the percentage of the semester the student attended based on the withdrawal date/last date of attendance.
Students wishing to withdraw from the college during the semester should meet with the Dean of First Year Students or the Assistant Dean of Academic Services, who will escort the students to meet with the Bursar, Office of Financial Aid, and the Registrar. The Bursar and Office of Financial Aid work with the student to make the student aware of what will happen with Title IV funds and other aid resources upon withdrawal.
The student’s withdrawal date is the date the student began the withdrawal process; the date the student otherwise provided the school with official notification of the intent to withdraw (verbal or written); or for the student who does not begin the school’s withdrawal process or notifies the school of intent to withdraw, the mid-point of the payment period of enrollment for which the Title IV assistance was disbursed (unless the institution can document an actual date the student was involved in an academically-related activity). The official withdrawal date is determined by the Office of the Registrar. For any student who withdraws from the College, the College does have the option of using a student’s documented last day of attendance at an academically-related activity as the withdrawal date, if the College believes this better reflects when the student stopped attending and truly withdrew from school.
To determine the treatment of Title IV Funds when a student withdraws, the college uses the federal Return of Title IV Funds on the Web through the COD website to determine what, if any Title IV aid must be returned. The percentage of the semester the student attended is calculated as follows
Number of days the student completed in the semester
Number of total days in the semester
The number of days counted includes all calendar days in the semester including weekends and holidays, but excludes college breaks of five or more days.
The percentage of the semester the student attended is used to calculate the amount of the student’s earned versus unearned federal Title IV aid funds. The unearned portion of federal aid funds must be returned to the appropriate aid program in accordance with the Order of Return as mandated by federal regulation. The Order of Return is: Federal Unsubsidized Direct Loan (not PLUS), Federal Subsidized Direct Loan, Federal Perkins Loan, Federal Direct PLUS Loan, Federal Pell Grant, Federal SEOG Grant, Federal TEACH Grant; Iraq and Afghanistan Service Grant.
The College must return its portion of Unearned Title IV aid (loan and grant) to the appropriate federal program within 45 days from the student’s withdrawal date. If the amount the unearned Title IV funds being returned includes a portion of a federal loan, the student is responsible for repayment of the loan that was earned in accordance with the terms of the loan program. If the amount the student returns includes grant aid, the student must repay 50% of the grant money received, rather than 100%.
The student must return unearned grant aid to the college within 45 days from the date of notification. Failure by the student to return or make arrangements to return unearned grant aid to the College within 45 days will result in the student being reported to the U.S. Department of Education (USDOE). The student will be considered in an Overpayment Status, and will not be eligible for additional aid at any post-secondary institution participating in Title IV Aid programs. Students who are reported to USDOE in an Overpayment Status should contact the USDOE to make payment arrangements to repay the necessary grant funds.
Examples of Federal Title IV Return of Funds calculation are available in the Office of Financial Aid. Students who stop attending Lycoming College may not receive further financial aid disbursements, may lose some or all of the aid that has already been disbursed to their account, may be responsible for repayment of unpaid charges, and may be considered in Overpayment status with USDOE.
Students who wish to rescind their official withdrawal submitted to the college must do so within one week of the original withdrawal and notification must be provided in writing to the Office of Financial Aid.