Repayment of Federal Funds
Students receiving financial aid or scholarships should check with the Financial Aid Office before withdrawing or dropping any classes after the semester has begun. You should never just stop attending classes.
If a recipient of Title IV grant or loan funds completely withdraws (either officially or unofficially) from the College after beginning attendance, the amount of Title IV grant or loan assistance earned by the student must be determined. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds will need to be returned. This calculation is based on how far into the semester the student participated in their classes. Financial aid funds are returned in the following order: Unsubsidized Loan, Subsidized Loan, Parent Plus Loan, and lastly Pell Grant. Any return of financial aid funds will be processed and returned to the Federal Government within 45 days of when LDS Business College determines the student has withdrawn.
If the amount disbursed to the student is less than the amount the student earned, and for which the student is otherwise eligible, he or she is eligible to receive a post-withdrawal disbursement of the earned aid that was not received. This calculation is based on how far into the semester the student participated in their classes. The Pell Grant would disburse post-withdrawal to the student without authorization, but if a student was eligible for a post-withdrawal disbursement of any loans the College would need authorization to still disburse the loans. A student has 14 days to accept or decline the post-withdrawal disbursement of loans.
If the student doesn’t begin attendance in any classes, they will lose eligibility for the grant and/or loan. The College will use attendance records and communications from faculty to determine students' participation in class. The school must return any Direct Loan or Pell Grant funds that were applied to the student’s account. LDSBC reports to NSLDS (National Student Loan Data System) that the student will not or did not begin attendance.
Partial withdrawals are when a student withdraws from one or more classes (but not all classes) during a semester. Classes dropped before the drop deadline will not show on the student’s transcript. Students who withdraw after the drop deadline may receive a “W” which will show on the student’s transcript and will impact the student’s aggregate completion rate (see Satisfactory Academic Progress for more information).
Students who have a scholarship and drop below full time (below 12 credit hours) may be put on scholarship probation for a future semester. Students receiving financial aid (loans and grants) should check with the Financial Aid Office to determine how the withdrawal will impact his/her financial aid eligibility for the current and future semesters.
Students who withdraw from all classes during a semester may be required to repay all or part of financial aid received for that semester. Students can withdraw from classes through the Registration Office. Their office has an online withdrawal form. It is always best to consult with an academic advisor before withdrawing from any course. The Financial Aid office will use the date the withdrawal is processed by the Registration office as the date for calculating financial aid eligibility. You can review the Tuition Refund Policy for more information.
Unofficial withdrawals are when a student stops attending all classes during a semester but never officially withdraws with the Registration Office. These students will receive E and/or UW grades—both of which are failing grades and will greatly impact the student’s cumulative GPA and aggregate completion rate. These students often lose financial aid eligibility for future semesters and may have to repay aid already received for that semester. The Financial Aid office will use the semester mid-point date when calculating financial aid eligibility for unofficial withdrawals. Satisfactory Academic Progress details the conditions under which a student will lose eligibility to receive financial aid.