It is important that you consider very carefully the consequences of withdrawing from your classes.
Under the Higher Education Amendment regulation called Return of Title IV Funds, all students receiving Title IV federal grant or loan assistance who withdraw from the institution in the first 60% of the term are subject to the Return of Title IV Fund policy. This regulation affects the calculation of aid to be returned as well as repayment procedures. The percentage of aid earned by a Title IV student is determined by calculating the percentage of the period that the student completed. If the student completes up to 60% of the term, the percentage of aid earned equals the percentage of the completed period. A portion of the Title IV funds (Pell Grant, ACG, SEOG, Direct Loan, Unsubsidized Direct Loan) awarded to the student must be returned. The calculation of the return of these funds may result in the student owing a balance to Lone Star College System and/or the Department of Education. It is the studentís responsibility to officially withdraw from all classes. If the student completes 60.01% or more, the student earns 100% of aid.
Students who are no longer attending at least six credit hours at the time loan funds are scheduled to be disbursed are not eligible to receive those funds. The loan will be cancelled and all loan funds returned to the Department of Education.
The Financial Aid Office is required by federal statute to recalculate federal financial aid eligibility for students who withdraw, drop out, are dismissed, or take a leave of absence prior to completing 60% of a payment period or term. ALL Title IV financial aid programs must be recalculated in these situations.
If a student leaves LSCS prior to completing 60% of a payment period or term, the financial aid office recalculates eligibility for Title IV funds. Recalculation is based on the percentage of aid earned must recalculate their 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 payment period or 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 aid earned.
Funds are returned to the appropriate federal programs 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 and/or the student may 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:
*Title IV financial aid at Lone Star College System includes the Federal Pell Grant, the Federal Supplemental Educational Opportunity Grant, the Federal Direct Loan (both subsidized and unsubsidized), and the Federal Parent Loan for Undergraduate Students (PLUS).
Repayment with Lone Star College will include terms that permit students to repay overpayments while maintaining their eligibility of Title IV Funds. However, LSCS repayment arrangements with the students must provide complete repayment of the overpayments within two years of the date of the institution's determination that the student withdrew.
The student has up to 45 day period to repay Title IV funds. If the student does not repay the funds, the student becomes ineligible for Title IV funds. The student will remain ineligible until the student enters into a satisfactory repayment agreement with LSCS.
Students can make repayments or setup payment plans by contacting the Business Office.
Mon-Fri: 7:30 a.m. - 7 p.m.