Financial Aid Refund Policy
The student’s enrollment status will be determined based on enrollment on census date each term. This is the 12th class day of a long term. Once enrollment status has been determined, financial aid will be reviewed. If the student’s enrollment status is different than that at which he or she was awarded, his/her financial aid will be adjusted accordingly. For example: Institutional aid and state grants requiring full-time enrollment will be cancelled, Federal Pell Grants will be adjusted for new enrollment status.
If a student drops a class after census date, institutional aid may be reduced – see Institutional Aid Policy – but federal and state grants will not be adjusted. However, Federal Stafford loans require enrollment to be recertified at time of disbursement. Federal regulations state that if a student drops below half-time or withdraws prior to loan disbursement, the loan may not be disbursed.
Institutional Aid PolicyWhen a student withdraws from the university or drops a class, adjustments are made to the financial aid that was awarded to the student. Adjustments in financial aid are done in coordination with the University’s institutional charges refund policy. Scholarships and other institutional aid may be rescinded.
Institutional aid granted by TLU is adjusted by the Office of Financial Aid according to the percentage refund schedule set by the registrar’s office for adjusting institutional charges. In no case will a student receive institutional funds in cash.
Federal Aid PolicyThe student’s enrollment status will be determined based on enrollment on census date each term. This is generally the 12th class day of a long term. Once enrollment status has been determined, financial aid will be reviewed.
Students who withdraw from all classes prior to the 60 percent point of the term and who receive institutional and/or Title IV federal financial aid may owe a refund of some or all of the federal, state and institutional aid received. Also, students who fail all of their classes because they stopped attending classes will be considered to have only attended class until the mid point of the term unless proof of class attendance is provided by the student.
Federal financial aid is “earned” on a proportional basis for each day of the term that the student has completed. If a student completes 30 percent of the term, then he or she has earned 30 percent of the federal financial aid. If the financial aid has been credited to the student’s account and has paid institutional charges only, 70 percent of the aid must be returned to the federal financial aid programs.
Federal funds are returned to the programs in the following order:
Unsubsidized Federal Stafford Loan
Subsidized Federal Stafford Loan
Parent Loan for Undergraduate Students (PLUS)
Federal Pell Grant
Federal Supplemental Educational Opportunity Grant (FSEOG)
If financial aid created a credit on the student’s account that was then refunded to the student, the student will be required to repay 50% of any unearned grant amount. If the credit balance was created by a loan disbursement, the student will be required to repay the lender the amount of the loan as per the terms of the signed promissory note.
Example 1: Joe was awarded federal grants totaling $3000 and received Federal Stafford funds of $2500. Joe was registered full time, lived in Seguin Hall and had 15 meal/week meal plan. His total institutional charges are $12,490.
If Joe withdraws at the 30% point in the term, he will have earned $1650 of the $5500 awarded. 70% of the $5500 or $3850 must be returned to the federal programs. TLU will return the $2500 Federal Stafford Loan to the lender and $1350 of the federal grants. Because Joe withdrew during week 5 of the term, he does not get a refund of tuition, room or board.
Assuming Joe had a zero balance on his student account at the time of withdrawal, he will be required to pay TLU $3850.
Example 2: Joe was awarded federal grants totaling $3000 and received Federal Stafford funds of $2500. Joe was registered full time, lived in Seguin Hall and had 15 meal/week meal plan. His total institutional charges are $12,490.
Joe withdrew at the 50% point of the term. Only 50% of the $5500 or $2750 is considered earned. TLU would return the $2500 Federal Stafford loan to the lender and $250 of the federal grants. Assuming Joe had a zero balance on his student account at the time of withdrawal, he will be required to repay to TLU $2750.
Although financial aid must be returned to the federal programs as prescribed by federal regulations, the TLU Institutional Charges Refund Policy does not refund institutional charges at the same percentages. Students will be required to pay TLU for any balances owing after the institutional charges refunds and financial aid refunds have been calculated.
If part of the balance owed to TLU is the repayment of a federal grant, TLU has 30 days to notify the student of the balance owed. The student has 45 days to either repay the funds or make satisfactory payment arrangements with the Business Office. Students who fail to repay the funds within 45 days may be reported to the credit bureau and will be reported to the U.S. Department of Education where a hold will be placed on the student’s aid application. No further financial aid can be awarded until the hold is cleared.
Students are encouraged to meet with the Office of Financial Aid before the withdrawal process has started so that they can be informed of the financial impact of withdrawing from college.
State Grant Aid PolicyWhen a student withdraws from all classes or drops a class, tuition will be refunded according to the University’s institutional charges refund policy. The Tuition Equalization Grant (TEG) is tuition restricted. If a student withdraws or drops a class after census date, TEG will only be adjusted if TEG plus institutional grants and scholarship are greater than tuition.
