Withdrawing from classes can impact your financial aid. If you decide to withdraw, you may be required to return a portion of your Title IV Aid, which includes Pell Grants, SEOG, and Direct Loans. Understanding how this process works and the potential consequences can help you make an informed decision.

Refund Policy for Return to Title IV

Federal regulations require Title IV financial aid funds to be awarded with the assumption that a student will remain enrolled for the entire semester in which the aid was awarded. When a student withdraws from all courses for any reason, including medical withdrawals, they may no longer be eligible for the full amount of Title IV funds that they were originally scheduled to receive. Funds are earned in proportion to the amount of time in which they are enrolled. A calculation is used to determine the amount of federal student aid funds they will have earned at the time of the withdrawal.

Once 60% of the semester is completed, a student is considered to have earned all of his/her financial aid and will not be required to return any funds.

How Aid is Affected

• Less Than 60% of Term Completed: If you withdraw before finishing 60% of the term, you only earn aid for the part of the term you completed. This means you will need to return some of your Title IV funds. Here’s how we calculate it:

  
                                                       
  
  If you earned less aid than was disbursed, you may owe a balance to Lone Star College and/or the Department of Education. The student has up to 45 days from the time the return of Title IV calculation is made to repay their funds in order to keep Title IV eligibility. 
  
  If you earned more aid than was disbursed, the institution will issue a post-withdrawal disbursement within 45 days. The institution must return any Title IV funds it is responsible for within 45 days of determining your withdrawal date.
  
  
  

• 60% or More of Term Completed: If you complete 60% or more of the term, you have earned 100% of your aid, and no funds need to be returned.

Special Considerations

• Enrollment and Loan Disbursement: If you are not enrolled in at least six credit hours when loan funds are scheduled to be disbursed, your loan will be canceled, and the funds will be returned to the Department of Education.

• No Attendance or Failing Grades: If you receive all Fs or a mix of Fs and Ws without officially withdrawing, we assume an unofficial withdrawal and calculate using 50% of the term. It is your responsibility to officially withdraw from all classes.

Refund Allocation Order

Returned funds are allocated in this order:

1. Unsubsidized Direct Loans
2. Subsidized Direct Loans
3. Federal Parent (PLUS) Loans
4. Federal Pell Grants
5. Iraq and Afghanistan Service Grant
6. Federal Supplemental Educational Opportunity Grants (SEOG)
7. TEACH Grants

Repayment of Return of Title IV

The student has up to 45 days from the time the return of Title IV calculation is made to repay their funds in order to keep Title IV eligibility.  To pay your return of Title IV balance please contact your campus business office.