Tuition Refunds

The Higher Education Amendments of 1998 revised the formula for calculating the amount of aid a student and a school can retain when the student totally withdraws from all classes, does not satisfactorily complete any classes, or is suspended. The amount of federal aid that a student must repay is determined via the Federal Formula for Return of Title IV funds as specified in Section 484B of the Higher Education Act. The law also specifies the order of return of the Title IV funds to the programs from which they were awarded.

If you withdraw from or quit attending all classes prior to completing more than 60% of an enrollment term, your eligibility for aid will be recalculated based on the percent of the term completed. For example, if you withdraw after completing only 30% of the term you will have "earned " only 30% of any Title IV aid received (other than Federal Work Study). You and/or the school must return (repay) to the federal government the remaining 70% of the federal funds that you received.

I. This policy applies to all students who withdraw, drop out or are suspended from Linn-Benton Community College and receive financial aid from Title IV finds:
  • The term "Title IV Funds" refers to the federal financial aid program authorized under the Higher Education Act of 1965 (as amended) and includes the following programs: Federal Family Education Loan Program (FFELP), FFELP Parent Loan (PLUS), Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (SEOG), Federal Perkins Loan and other Title IV Programs.
  • A student's withdrawal date is:
    • the date the student initiates the institution's withdrawal process; or
    • the midpoint of the period for a student who leaves without notifying the institution; or
    • the student's last date of attendance at a documented academically related activity.
  • A student who has not attended classes during the term of withdrawal will be required to repay 100% of all financial aid funds disbursed to him or her. Students receiving "Y" grades may be required to repay funds if they cannot establish that they attended class during the term. Students must provide documentation of class attendance within a given time frame. Acceptable forms of documentation of class attendance include exams, records of attendance or computer assisted instruction.
II. Title IV aid is earned in a prorated manner on a per diem basis up to and including the 60% point in the term. Title IV aid is viewed as 100% earned after the 60% point in time.

  • The percentage of Title IV aid earned shall be calculated as follows: Percent of term completed: The percent of term completed shall be the percentage of Title IV aid earned by the student.
  • The percentage of Title IV aid unearned shall be 100% minus the percent earned. This amount will be returned to the appropriate Title IV programs. Unearned Title IV aid shall be returned first by LBCC from the student's account by calculating the term's institutional charges times the percent of unearned aid. Unearned Title IV aid shall be returned to the following programs in the following order:
    1. FFELP Unsubsidized Loan
    2. FFELP Subsidized Loan
    3. Federal Perkins Loan
    4. FFELP Parent Loan to Undergraduate Students (PLUS)
    5. Federal Pell Grant
    6. Federal SEOG
    7. Other Title IV Programs
  • When the total amount of unearned aid is greater than the amount returned by LBCC, the student is responsible for returning unearned aid to the appropriate program(s) as follows:
    1. FFELP Unsubsidized Loan*
    2. FFELP Subsidized Loan*
    3. Federal Perkins Loan*
    4. FFELP Parent Loan to Undergraduate Students (PLUS)*
    5. Federal Pell Grant**
    6. Federal SEOG**
    7. Other Title IV Programs

*Students are permitted to "return" loan funds according to loan repayment provisions in the promissory note. This usually means the student will have a grace period and also deferments if the student returns to school.

**Amounts to be returned by the student to federal grant programs will be 50% of the "unearned" portion and will be due immediately to the Business Office at LBCC. If you are entitled to a refund from LBCC of amounts paid to cover institutional charges, any refund due to you will first be applied to your obligation to return "unearned" aid before tyou receives any money back. Thus, portions of institutional refunds may be applied on your behalf to your outstanding Title IV Funds account and not actually refunded directly to you. Refunds on all institutional charges, including tuition and fees, will be calculated using the school's refund policy published in the LBCC Schedule of Classes.

III. Adjusted bills and award letters will be sent to your home address on file at LBCC. You are responsible for keeping your addresses current with LBCC. You are responsible for any portion of your institutional charges that is left outstanding after funds are returned to the Title IV account.

Institutional and students' responsibilities in regard to the return of Title IV funds.

  • LBCC's responsibilities in regard to the return of Title IV funds include:
    1. Providing each student with the information given in this policy.
    2. Identifying students who are affected by this policy and completing the Return of Title IV Funds calculation for those students.
    3. Notifying the student regarding the amount of money due from the student to repay unearned Title IV Funds.
    4. On behalf of the student, the school returns any Title IV funds to the Title IV programs that were used to pay the current term's institutional charges.
  • The student's responsibilities in regard to the return of Title IV funds include becoming familiar with the Return of Title IV Funds policy and how complete withdrawal affects eligibility for Title IV aid. The student must repay or make arrangements to repay a grant overpayment from a withdrawal in order to regain Title IV eligibility. Contact the Business Office regarding repayments.
The fees, procedures, and policies listed above supersede those published previously and are subject to change at any time.

If you would like examples of the policy, contact the Financial Aid Office, 6500 Pacific Blvd. SW, Albany, Oregon 97321 or telephone (541) 917-4850.