Withdrawl & Return of Title IV Refund Policy & Procedure
When a recipient of Title IV grant or loan assistance withdraws from Lincoln University during a payment period or period of enrollment in which the student began attendance, LU determines the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date with the appropriate Return of Title IV (R2T4) calculations as listed on the FAA Website: https://faaaccess.ed.gov. If the student withdraws after the 60% point in payment or period of enrollment, the student has earned 100% of the Title IV funds scheduled to receive during the period.
A student is considered to have withdrawn period of enrollment if the student does not complete all the days in the payment period or period of enrollment that the student was scheduled to complete. If the student received more Title IV fund than earned based on the date of withdrawal, an R2T4 is completed and any excess received are returned to the Department of Education. 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.
Title IV Funds are returned the following order:
- Unsubsidized Federal Direct Stafford loans.
- Subsidized Federal Direct Stafford loans.
- Federal Direct PLUS received on behalf of the student.
- Federal Pell Grants.
If the student received less Title IV funds than earned, a post withdrawal disbursement is be made for any Pell Grant. Direct Loan post-withdrawal disbursements are made only if written confirmation is received from the student (or parent in the case of a PLUS loan). The Financial Aid Advisor will notify the student within 30 days of the date of determination that the student needs to confirm any post-withdrawal loan funds to be credited to the student account. Post withdrawal disbursements must be made as soon as possible but within 120 days of the student's withdrawal.
Lincoln University's Registrar's office will inform the student by email and in-person and it's the student responsibility to pick up the Official University Withdrawal Form from the Admissions/Records Office. The student will then obtain the signature of required instructors and advisors. The Financial Aid Office will conduct an Exit Counseling session and instruct the student to complete the interactive electronic Exit Counseling online at www.studentloans.gov. Once this action has been completed The Financial Aid Office will sign off on the official withdrawal form. In the process if the student borrower withdraws without notifying the school, Lincoln University will confirm that the student has completed the online counseling and if the student has not, then Exit Counseling material will be mailed to the student borrower's last known address within 30 days of learning that the borrower has withdrawn or failed to participate in the exit counseling session. Documentation will be maintained in the student's file to substantiate the school's compliance. After the appropriate signatures are obtained the R2T4 calculation is performed in CPS on FAA Access and The Financial Aid Office records the award adjustment based on the R2T4 worksheet. The Financial Aid Office will run the Excel transmittal process in conjunction with The Accounting/Fiscal Office. The Accounting/Fiscal Office will return the required funds to G5. A copy of the R2T4 worksheet will be placed in the student's file.
The Registrar's Office will run a report at the 15th day of class and then another report at the end of each semester of all federal financial aid recipients to determine the Unofficial Withdrawals. A student is considered unofficially withdrawn if he/she is absent no greater than 15 days after the official last date of attendance; or when a student fails to return from an approved leave of absence. Lincoln University will return all amounts of federal financial aid funds for which the school is responsible no later than 45 days after the date the designated school official in the Registrar's office determines the student has withdrawn. The Accounting/Fiscal Office will be responsible for returning the unearned funds to U.S. Department of Education G5.