The 1998 Reauthorization of the Higher Education Act requires institutions to calculate a return of Title IV funds on all financial aid students who withdraw from classes. As a participant of the US Direct Loan Program the London School of Hygiene and Tropical Medicine is required to adhere to US law regarding the repayment of Title IV funds following a student’s withdrawal from study. The Title IV programs that are covered by this law include Direct Loans and Direct PLUS Loans. This document sets out how this is calculated and the procedure followed to return ‘unearned’ funds to the US government.
Students are responsible for following LSHTM’s interruption of studies (approved leave of absence) and/or withdrawal procedures.
A student is considered to have withdrawn, for financial aid purposes, if
- they stop attending classes before the end of term, or if
- they take an approved leave of absence of more than 180 days over a 12 month period.
A student who stops attending classes, but who does not officially withdraw, will be subject to return of funds. This will be based on the date of withdrawal or on the last documented date of attendance as determined by the School.
Withdrawing from classes means that a student may not receive further financial aid disbursements, may have to repay some or all of the aid that has already been disbursed, and will be personally responsible for payment of any charges for tuition fees that are due.
If the School determines that a student has withdrawn, the student is no longer considered to be enrolled and in attendance. Therefore the student is no longer eligible for an in-school status or in-school deferment, and the School must report the student as withdrawn in NSLDS Enrolment Reporting.
Although each term’s US Federal Loans disbursement is posted to each student’s account at the start of each period students only earn the funds as they complete the period. If a student withdraws during the term the amount of Title IV program assistance they have earned is determined by a specific formula set out below.
If a student has received less assistance than the amount that they have earned, they may be able to receive those additional funds. If a student has received more assistance than they have earned, the excess funds must be returned by the school and/or the student.
The amount of assistance a student has earned is determined on a pro rata basis, using the withdrawal date/last date of attendance. The number of days counted includes all calendar days in the term excluding School closures that exceed four days. The percentage of the term attended is used to determine the amount of ‘earned’ versus ‘unearned’ aid. The School will calculate R2T4 using worksheets provided by the US Department of Education for the purpose of this. All funds must be returned to the lender within 45 days of the withdrawal date.
For example, if a student completes 30% of the payment period or period of enrolment, they earn 30% of the assistance they were originally scheduled to receive. Once a student has completed more than 60% of the payment period or period of enrolment, they have earned all the assistance that they were scheduled to receive for that period.
The School is required to return a portion of the excess equal to the lesser of unearned Title IV aid or unearned institutional charges. The School must return this amount even if it didn’t keep this amount of the student’s Title IV program funds.
The student is responsible for the return of any difference. If a student is required to return Title IV funds to a Federal Loan program, the loan may be repaid in accordance with the existing terms of the loan program promissory note.
The requirements for Title IV program funds when a student withdraws are separate from any refund policy that the School has. Therefore, a student may still owe funds to the School to cover unpaid institutional charges. The School may also charge the student for any Title IV program funds that the School was required to return. Learn more about the LSHTM Tuition Fees and Refunds Policy.
There may be cases where London School of Hygiene and Tropical Medicine has originated funds for a student who fails to arrive and enrol during the registration period. Any Title IV funds already received will be returned to the US Department of Education, and their systems updated to confirm that the student did not enrol or receive any funds. There will be no tuition fee liability for the student.
Further information about Title IV program funds can be found on the Student Aid website or by contacting the Federal Student Aid Information Center (FSAIC).
For queries and further information at LSHTM please contact the Tuition Fees Manager in Registry via fees@lshtm.ac.uk or on 020 7299 4782.