Refund Distribution of Financial Aid
Once the withdrawal date is determined, A Title IV refund calculation will be performed. All unearned Title IV aid funds will be returned to the respective programs within 45 days of the determined date of withdrawal. Fund will be returned in the following order:
- Unsubsidized Federal Direct Loans
- Subsidized Federal Direct Loans
- PLUS Federal Direct Loan
- Federal Pell Grant - Once the institution has determined that a student has completely withdrawn, a Return of Title IV funds calculation will be performed within 30 days. The institution will notify the student in writing of their revised eligibility after the Return of Title IV funds calculation is completed. If the student owes unpaid tuition and fees, the student will receive an updated invoice from the institution.
- Iraq and Afghanistan Service Grant (IASG)
- Federal Supplemental Educational Opportunity Grant
- TEACH Grant
After the Office of Financial Aid has a withdrawal date the Return to Title IV calculation will begin as follows:
Step 1: Determine the percentage of aid earned by calculating the percentage of the period that the student completed.
Step 2: Determine the amount of earned aid by applying the percentage to the total Title IV aid that was or could have been disbursed.
Step 3: Determine the amount of unearned aid by subtracting earned aid from disbursed aid or determine the amount of a post-withdrawal disbursement by subtracting disbursed aid from earned aid.
Step 4: If unearned funds must be returned, determine the school’s and the student’s shares; or if a post-withdrawal disbursement is due, determine the sources from which it will be funded.
Step 5: If unearned funds must be returned, allocate unearned aid to programs from which student was funded; or if a post-withdrawal disbursement is due, send student applicable notification.
Step 6: Return Lindenwood University`s share and any funds repaid by the student or if the calculation results in an amount that exceeds Lindenwood’s portion the student will be notified to repay those funds; or make the post-withdrawal disbursement.
If the student did not receive all the funds earned, they may be a due a post-withdrawal disbursement. If the post-withdrawal disbursement includes loan funds, the student will be offered to the student within 30days. The institution must get the student’s permission before the funds can be disbursed. The student may choose to decline all or part of the loan funds, so they do not incur additional debt. Students who wish to have loan funds credited to their account will need to make the request in writing to the Office of Financial Aid within 14 calendar days of receiving their notification letter. If the post-withdrawal disbursement is from Pell, then the money will be applied to any outstanding tuition, fees, room or board. If there is a credit balance it will be sent to the student within 14 days of being created. If the calculation results in an amount that exceeds Lindenwood’s portion the student will be notified to repay those funds to the Department of Education.
There are some Title IV funds that a student may have been scheduled to receive that cannot be disbursed to a student once they have completely withdrawn because of other eligibility requirements. For example, if a student is a first-time, first year undergraduate student and has not completed the first 30 days of their program before they withdraw, they will not receive any Federal Direct Loan funds that they would have received if they had remained enrolled past the 30th day.