Return of Title IV Formula
Title IV of the Higher Education Act of 1965, as amended in 1998, (Title IV and HEA program) establishes general rules that apply to federal student financial assistance programs. Federal regulations require a specific refund calculation for all students receiving Federal Title IV funds. Those Federal Title IV Funds at Lawson State Community College are the Federal Pell Grant, Federal Supplemental Opportunity Grant and Federal College Work-Study; however, Federal College Work-Study is not included in the Return of Title IV calculation. The percentage of Federal Title IV funds earned is created by dividing the number of calendar days completed by the time of withdrawal date by number of calendar days in the term. 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. If it is determined the student has completed more than 60% of the term, the student is considered to have earned 100% of the Federal Title IV Funds.
The unearned portion of federal aid funds received must be returned to the appropriate aid program in accordance with the order of return as mandated by law. The order of return at Lawson State Community College is: Federal Pell Grant, Federal SEOG Grant, other Title IV aid.
The college is responsible for returning the lesser of unearned Federal Title IV aid or unearned institutional charges. Unearned institutional charges are based on the percentage of the semester the student did not attend. The college is responsible for its return of funds first, followed by the student's return of funds. Keep in mind that when Federal Title IV Funds are returned, this may create a balance due to Lawson State from the student. A statement is forwarded to the students regarding these charges with a point of contact being the Business Affairs Office.
If it is determined a student earned more Federal Title IV aid than was disbursed, the institution may owe the student a post-withdrawal disbursement which must be paid within 120 days of the student’s withdrawal.