Withdrawals and Returns of Title IV Funds

Federal Law requires an institution to return all unearned Title IV funds to the appropriate Title IV programs when a recipient of Title IV aid withdraws on or before completing 60% of the period of enrollment. If a recipient of Title IV funds withdraws during a period of enrollment, the Southern University Law Center must calculate the amount of Title IV Aid the recipient did not earn and return it to the Title IV Programs. This action may require the recipient to repay funds issued directly to them prior to the calculation. Failure to repay the unearned portion of the loan may result in being reported to the U.S. Department of Education.

Federal Law requires that refunds on behalf of student financial assistance recipients must be returned in the following order:

  1. Federal Direct Unsubsidized Stafford Loan
  2. Federal Direct Subsidized Stafford Loan
  3. Federal Perkins Loan
  4. Federal Direct PLUS (Graduate Student)
  5. Federal Direct PLUS (Parent)
  6. Federal Pell Grant
  7. Federal Supplemental Educational Opportunity Grant (FSEOG)
  8. TEACH Grant

Students must withdraw from the Southern University Law Center by submitting a withdrawal form to the Registrar’s Office. Calculation of refunds or tuition adjustments shall be based on the official withdrawal date established by the Registrar’s Office. If a student unofficially withdraws from the university, the withdrawal date is the midpoint of the period of enrollment.

How Withdrawing Affects Your Financial Aid Eligibility and Repayment of Aid – Title IV (R2T4) Policy

Federal Title IV funds are awarded under the assumption that a student will remain in classroom attendance for the entire period (semester) for which the funds were awarded. When a student withdraws from all courses, regardless of the reason, s/he may no longer be eligible for the full amount of Title IV funds originally awarded/received. Return of Title IV funds to the federal government is based on the premise that a student earns financial aid in proportion to the length of time during which s/he remains enrolled. A pro-rated schedule determines the amount of federal student aid funds s/he will have earned at the time of full withdrawal. For example, a student who withdraws in the second week of the semester has earned less of his/her financial aid than a student who withdraws in the fifth week. Once the 60% point in the semester is reached, a student is considered to have earned all of the financial aid originally awarded and will not be required to return any funds.

Federal regulations require a recalculation of financial aid eligibility if a student:

  • Completely withdraws;
  • Unofficially Withdraws (Stops attending before the semester’s end);
  • Approved Leave of Absence

Southern University Law Center (SULC) students who receive federal student aid and who do not remain in attendance through the end of the semester could be responsible for repaying a portion of the financial aid originally received. Students who do not begin attendance in classes are not eligible for federal aid and must repay all aid originally received. NOTE: Students who receive federal student aid are subject to both the SULC’s Institutional Tuition Refund Policy and a separate Federal Return to Title IV (R2T4) funds refund policy. However, SULC’s Institutional Tuition Refund Policy is separate from the Federal R2T4 regulations to return unearned aid. Receiving a tuition/fee refund from SULC will have no impact on the amount the student must repay to the federal aid programs.