The Return of Title IV funds Policy, as defined by the Federal government, determines the formula for calculating the amount of Title IV funds a student and school can retain when a student withdraws from ALL courses prior to completing more than 60% of a semester, session, or term. Federal financial aid regulations have defined that a student who withdraws from all courses prior to completing more than 60% of a semester, session,  or term has not earned 100% of the federal financial aid that was received, and the student and/or the school may be required to return a portion of his or her federal aid. If you are thinking about withdrawing from all classes prior to completing more than 60% of the semester, session, or term, you should read the policy below to understand how your withdrawal will affect your financial aid.

The Return calculation must be computed on any recipient of Title IV grant or loan funds who ceases attendance in all courses. A recipient of grant or loan assistance is a student who has actually received Title IV funds or has met the conditions that entitle him/her to a late disbursement of Title IV funds.

“Title IV Funds” refers to the following Federal financial aid programs: Unsubsidized Federal Stafford Loan, Subsidized Federal Stafford Loan, Federal Perkins Loan, Federal PLUS Loan, Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (FSEOG), and any other Title IV aid, excluding Federal Work Study.

The Federal government requires that schools determine the amount of Title IV funds a student has earned when he or she has ceased attendance in all courses by ‘officially’ or ‘unofficially’ resigning from school. An official withdrawal occurs when a student notifies the University of his or her intent to withdraw by following the University’s resignation process. An unofficial withdrawal occurs when a student ceases attendance in classes but does not notify the University through the official resignation process.

The amount of Title IV assistance earned by the student is determined by the number of days the student has spent in academic attendance during a specific semester, session, or term before ‘officially’ or ‘unofficially’ resigning. The school and/or the student must then return the unearned portion of Title IV funds to the appropriate programs.

A student’s withdrawal date is:

1. the date the student began the University’s withdrawal process or officially notifies the University of his or her intent to withdraw, or
2. the student’s last date of contact for the course either through attendance, examination, quiz or assignment

At the point of withdrawal, the portion of your Federal grants and loans you are entitled to receive is calculated on a percentage basis by dividing the total number of calendar days you completed before you withdrew by the total number of calendar days in the semester, session or term. Scheduled breaks of five consecutive days or more are excluded.

For example, if you complete 30% of the semester, session, or term, you earn 30% of the assistance you were originally scheduled to receive. This means that 70% of your scheduled awards remain unearned and must be returned to the Federal government. Once you have completed more than 60% of the semester, you have earned all (100%) of your assistance. 

*If a LSU Online student intends to enroll for the entire term however does not enroll for the second module of the term, the student is

considered to have officially withdrawn from the term.

*If a LSU Online students intends to enroll for only one module in a Term and resigns from that module, we will determine if able to retain the funds disbursed to you by the 60% date listed by the individual module in which you resigned.

If a student resigns on or after the dates listed above, and obtains all instructors’ signature verifying that he/she attended classes at least one time, he/she will earn 100% of the federal financial aid received.

Once the Return of Title IV Funds calculation is completed, if the University is not required to return all of the excess funds, you must return the remaining amount. Any loan funds that you must return need to be repaid according to the terms of your promissory note. If LSU is required to repay Federal aid funds, you are responsible for any balance owed to the University as a result of the repayment. 

If you receive Title IV funds and resign either ‘officially’ or ‘unofficially’ and never attend any classes, you are not an eligible Title IV recipient. No Return of Title IV Funds calculation is required because you will not be eligible for any of the awards received. All grant funds will be cancelled and returned to the appropriate programs. Furthermore, any loan funds used to offset institutional charges will be returned to the Department of Education by LSU, and the Department will be notified that you never established eligibility by attending class. If LSU is required to repay Federal aid funds, you are responsible for any balance owed to the University as a result of the repayment. 

NOTE to Student Reservists Called to Active Duty:According to the Department of Education, if a Title IV eligible student withdraws because of military requirements, the school must perform the Return of Title IV Funds calculations that are required by the defined statute and regulations. This means that we still have to determine whether Title IV funds must be returned to the Title IV programs, and you may be required to payback a portion of your federal aid. If LSU is required to repay Federal aid funds, you are responsible for any balance owed to the University as a result of the repayment. 

NOTE to Students Assigned “I” Grades:According to the Department of Education, if you complete a semester, session, or term with all “F’s” and one or more “I” grades OR are assigned a grade of “I” in all courses, we are required to follow the Return of Title IV Funds Policy, as defined above, to determine if you unofficially withdrew from the University and whether Title IV Funds must be returned to the Title IV programs. If funds must be returned, you may be required to payback a portion of your federal aid. If LSU is required to repay Federal aid funds, you are responsible for any balance owed to the University as a result of the repayment.