Full-Time Students - Refunds
Treatment of Title IV (Federal) Aid When a Student Withdraws
Lebanon Valley College is required by federal statute to determine how much financial aid was earned by students who withdraw, drop out, are dismissed, or take a leave of absence prior to completing 60% of a payment period or term. The Title IV programs that are covered by this statute are: Federal Subsidized and Unsubsidized Stafford Loans, Federal Perkins Loans, Federal PLUS Loans, Federal Pell Grants, Academic Competitiveness Grants, National Smart Grants, Federal Supplemental Educational Opportunity Grants (FSEOGs), Federal TEACH Grants and in some cases, certain state grant aid to students.
For a student who withdraws after the 60% point-in-time, there are no unearned funds. However, a school must still complete a Return calculation in order to determine whether the student is eligible for a post-withdrawal disbursement.
The calculation is based on the percentage of earned aid using the following Federal Return of Title IV funds formula:
Percentage of payment period or term completed = the number of days completed up to the withdrawal date divided by the total days in the term. (Any break of five days or more is not counted as part of the days in the term.) This percentage is also the percentage of earned aid.
Funds are returned to the appropriate federal program based on the percentage of unearned aid using the following formula:
Aid to be returned = (100% of the aid that could be disbursed minus the percentage of earned aid) multiplied by the total amount of aid that could have been disbursed during the payment period or term.
If a student earned less aid than was disbursed, the institution would be required to return a portion of the funds and the student would be required to return a portion of the funds. Keep in mind, that when Title IV funds are returned, the student borrower may owe a debit balance to the institution.
If a student earned more aid than was disbursed to him/her the institution would owe the student a post-withdrawal disbursement which must be paid within 120 days of the student's withdrawal.
The institution must return the amount of Title IV funds for which it is responsible no later than 45 days after the date of the determination of the date of the student's withdrawal.
Refunds are allocated in the following order:
-Unsubsidized Federal Stafford Loans
-Subsidized Federal Stafford Loans
-Federal Perkins Loans
-Federal Parent (PLUS) Loans
-Federal Pell Grants for which a Return of funds is required.
-Academic Competitiveness Grants for which a return of funds is required.
-National Smart Grants for which a return of funds is required.
-Federal Supplemental Opportunity Grants for which a return of funds is required.
-Federal TEACH Grants for which a return of funds is required.
There are some Title IV funds that you were scheduled to receive that you cannot earn once you withdraw because of other eligibility requirements. For example, if you are a first-time, first-year undergraduate student and you have not completed the first two weeks of your program before you withdraw, you will not earn any Stafford loan funds that you would have received had you remained enrolled past the second week. If you receive (or Lebanon Valley College or your parent receive on your behalf ) excess Title IV program funds that must be returned, Lebanon Valley College must return a portion of the excess equal to the lesser of:
1. your institutional charges multiplied by the unearned percentage of your funds, or
2. the entire amount of excess funds.
The school must return this amount even if it didn't keep this amount of your Title IV program funds.
If Lebanon Valley College is not required to return all of the excess funds, you must return the remaining amount. Any loan funds that you must return, you (or your parent for a PLUS Loan) repay in accordance with the terms of the promissory note. That is, you make scheduled payments to the holder of the loan over a period of time.
Any amount of unearned grant funds that you must return is called an overpayment. The amount of a grant overpayment that you must repay is half of the unearned amount. You must make arrangements with Lebanon Valley College or the Department of Education to return the unearned grant funds.
NOTE: The federal government requires that all full-time students make satisfactory academic progress toward a degree or certificate. Please visit http://www.lvc.edu/financial-aid/ to view the Academic Progress policy and requirements.
Treatment of Non-Title IV Aid When a Student Withdraws
Lebanon Valley College follows guidelines for Title IV programs (see above) when calculating the amount of institutional and/or state aid and/or private loans/scholarships that you have earned up to the point of withdrawal. Types of aid covered by this policy include but are not limited to: Presidential Scholarships (such as Vickroy, Leadership and Achievement Awards), LVC Grant-In-Aid, institutional scholarships, PHEAA State Grant and/or any other state administered grant funds.
When you withdraw during your period of enrollment the amount of non-Title IV assistance that you have earned up to that point is determined by the same specific formula used to calculate Title IV funds earned. If you received more assistance than you earned, the excess funds must be returned by Lebanon Valley College and/or you.
Once you have completed more than 60% period of enrollment, you earn all the assistance that you were scheduled to receive for that period.
Treatment of Institutional Charges When a Student Withdraws
Lebanon Valley College follows guidelines for Title IV programs (above) when calculating the amount of unearned institutional charges to be refunded. Charges eligible for refund are tuition, room, board*, private music lessons and overload charges.
Once you have completed more than 60% of the period of enrollment, you have earned all of the charges billed for that period.
*All Gold, Silver and Bronze level meal plans for Annville students include $50 flex dollars to be used in LVC dining facilities. If a student withdraws prior to the semester end, LVC will refund unused flex dollars. In the case of student withdrawal, the $50 flex dollars will be considered separate from the remainder of the board plan, for refund purposes.