All students receiving federal financial aid who completely withdraw within the first 60% of a term or semester are subject to the Return of Federal Funds provision.
- The responsibility to repay unearned aid is shared by the University of La Verne and the student.
- During the first 60% of the term/semester, the student “earns” federal aid in direct proportion to the length of time he or she remains enrolled.
- A percentage is calculated by dividing of the number of days completed in the term by the number of calendar days in the term.
- The percentage is applied to the amount of aid the student is eligible to receive for that term.
Requirement
The student shares in repayment of Title IV Funds awarded that are unearned. The student’s share is the difference between the total unearned amount and La Verne’s share of unearned aid. The student must repay his/her share of the unearned funds within 45 days after being billed by La Verne or set up a repayment schedule with the US Department of Education. Its share is the lesser of (1) the total amount of unearned aid or (2) the institutional charges multiplied by the percentage of aid that was unearned. La Verne must make post-withdrawal disbursements to eligible students who earned more aid than was disbursed prior to withdrawal.
Options
The student must either repay the funds in full within 45 days of notification or set up repayment schedule with the US Department of Education. La Verne must return its share of unearned federal aid funds no later than 30 days after it determines that the student withdrew.
Note 1: Any amount established by the Return to Federal Funds provision will be returned to the Federal programs in the following order: Federal Unsubsidized Stafford Loan, Federal Subsidized Stafford loan, Federal Perkins Loan, Federal PLUS Loan, Federal Pell Grant, and Federal Supplemental Educational Opportunity Grant. |
Note 2: If a student drops classes after the tuition refund period but before the 60% period of a term, the student will be charged for and will owe to the university, the entire amount of tuition; however, La Verne will prorate and return a portion of the student’s financial aid to the Title IV Program(s). |