The law specifies how your school must determine the amount of Title IV program assistance that you earn if you withdraw from school. The Title IV programs offered at Lively Technical College that are covered by this law are: Federal Pell Grants, Iraq and Afghanistan Service Grants, and Federal Supplemental Educational Opportunity Grants (FSEOGs).
When you withdraw during your payment period or period of enrollment the amount of Title IV program assistance that you have earned up to that point is determined by a specific formula. If you received (or your school or parent received on your behalf) less assistance than the amount that you earned, you may be able to receive those additional funds. If you received more assistance than you earned, the excess funds must be returned by the school and/or you.
The amount of assistance that you have earned is determined on a prorata basis. For example, if you completed 30% of your payment period or period of enrollment, you earn 30% of the assistance you were originally scheduled to receive. Once you have completed more than 60% of the payment period or period of enrollment, you earn all the assistance that you were scheduled to receive for that period.
If you did not receive all of the funds that you earned, you may be due a Post-withdrawal disbursement. Your school may automatically use all or a portion of your Post-withdrawal disbursement of grant funds for tuition, fees and room and board charges (as contracted with the school). Lively requests your permission to use the Post-withdrawal grant disbursement for all other school charges.
There are some Title IV funds that you were scheduled to receive that cannot be disbursed to you once you withdraw because of other eligibility requirements. For example, if you withdraw and did not have the minimum SAP requirement of 78% attendance and “C” grade average, the school will not draw down any financial aid.
If you receive (or your school or parent receives on your behalf) excess Title IV program funds that must be returned, your school 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. Any amount of unearned grant funds that you must return is called an overpayment. The requirements for Title IV program funds when you withdraw are separate from any refund policy that your school may have. Therefore, you may still owe funds to the school to cover unpaid institutional charges. Your school may also charge you for any Title IV program funds that the school was required to return.
Additional information is available on Student Aid on the Web at www.studentaid.ed.gov.