Unforeseen life circumstances can occur that may require you withdraw from your LMRC program. It is our responsibility to inform you what happens relative to your financial aid package if such a circumstance does occur.
Whom to inform you are withdrawing
If you – the student – need to withdraw from all classes during the semester, please inform your professor and the Director of Student & Alumni Services to develop a full understanding of
- the consequences of withdrawing from all classes
- your eligibility to receive a refund of tuition and course fees, which is dependent on the timing of your withdrawal.
Impact of withdrawing on financial aid
Federal regulations require Title IV financial aid funds be awarded under the assumption that you will attend the institution for the entire period in which the monies were awarded.
If you withdraw from all courses for any reason (including medical withdrawals), you may no longer be eligible for the full amount of Title IV funds that you were scheduled to receive. A pro-rated schedule is used to determine the amount of federal student aid funds you will have earned at the time of the withdrawal.
If you withdraw, then LMRC or you — or both — may be required to return some, or all the federal funds awarded you that semester. The federal government requires a return of Title IV federal aid that was received if the student withdrew on or before completing 60% of the semester.
Federal funds, for the purposes of this federal regulation, include Pell Grant, Supplemental Educational Opportunity Grant, Unsubsidized Stafford Loans, Subsidized Stafford Loans, and Parent PLUS Loans. The formula used in this federal “return of funds” calculation divides the aid received into earned aid and unearned aid.
Determining earned aid and unearned aid
A student “earns” financial aid in proportion to the time s/he is enrolled up to the 60% point. The percentage of federal aid to be returned (unearned aid) is equal to the number of calendar days remaining in the semester when the withdrawal takes place divided by the total number of calendar days in the semester. If a student was enrolled for 20% of the semester before completely withdrawing, 80% of federal financial aid must be returned to the aid programs. If a student stays through 50% of the semester, 50% of federal financial aid must be returned.
For a student who withdraws after the 60% point-in-time, there is no unearned aid. However, a school must still complete a return calculation in order to determine whether the student is eligible for a post-withdrawal disbursement.
Determining the official withdrawal date
The last day you attended class or clinical becomes the official “last date of attendance” and is verified by either the LMRC Registrar or the Director of Student & Alumni Services. The Financial Aid Administrator then uses this date to determine the percentage of the enrollment/payment period completed to result in the percentage of Title IV aid “earned.”
How the official withdrawal date is used
Using the official withdrawal date, the Financial Aid Administrator
- evaluates if any aid was eligible to be disbursed prior to the withdrawal date but had not yet been disbursed to the student
- calculates the percentage of “unearned” funds as soon as possible but no later than 30 days of the withdrawal date
- returns those “unearned” funds to the appropriate federal aid program within 45 days of the withdrawal date.
Post withdrawal disbursements
If a student was eligible for aid to be disbursed prior to the withdrawal date but the aid had not yet been disbursed, the Financial Aid Administrator will notify the student within 30 days of the official withdrawal date. The post withdrawal disbursement of any funds would first be used toward satisfying any outstanding balance with LMRC before any funds are returned to the student.
If the post withdrawal eligibility is for
- a grant disbursement, the funds will be disbursed within 45 of the student’s official withdrawal date.
- a loan, the student must reply to the notification to inform the Financial Aid Administrator if they wish to accept the loan obligation.
LMRC’s priority order for repaying unearned aid to the federal government
Once the amount of unearned federal aid is calculated, LMRC’s repayment responsibility is the lesser of that amount or the amount of unearned institutional charges. The school satisfies its responsibility by repaying funds in the student’s package in the following order:
- Unsubsidized Stafford Loan
- Subsidized Stafford Loan
- Parent PLUS Loan
- Pell Grant
How the student is notified
After the calculation is completed, a letter is mailed to the student outlining the calculation, the amount returned to the federal government and an updated tuition statement (reflecting the charges). The student is responsible for all charges and overpayments resulting from Return of Title IV calculation.
Student Rights & Responsibilities
Email the Financial Aid Administrator (LMRCFinaid@tuftsmedicine.org) with any questions.