Federal Title IV Financial Aid, Leaves of Absence, and Withdrawals

Federal Title IV funds are awarded to a student under the assumption that the student will attend seminary for the entire period for which the assistance is awarded. When a student withdraws from Luther Seminary, the student may no longer be eligible for the full amount of Title IV funds that the student was originally scheduled to receive.

These policies are in effect for all federal aid recipients in the Master of Divinity, Master of Arts, Master of Theology, and Doctor of Philosophy.

The Office of Financial Aid is required to calculate federal financial aid eligibility for students who withdraw, drop out, are dismissed, or take a leave of absence prior to completing a payment period or term. The federal Title IV financial aid programs must be recalculated when the student has not completed more than 60% of a payment period.

If the student leaves the seminary prior to completing 60% of a payment period or term, the financial aid office recalculates eligibility for Title IV funds. Recalculation is based on the percentage of earned aid using the following Return of Title IV Funds formula:

The amount of earned financial aid is calculated on a daily basis from the first day of classes. The process uses calendar rather than business days. Earned aid is determined by taking the number of days attended before enrollment ended divided by the total number of days in the term (first day of instruction until the last day of finals, excluding breaks of 5 or more days.)

Funds are returned to the appropriate federal program based on the percentage of unearned aid using the following formula:

Within 45 days from the determination of the date of withdrawal, Office of Financial Aid will calculate the amount of financial aid you have earned prior to the date the action was filed. Any aid received in excess of the earned amount is considered unearned. The unearned financial aid must be returned to the respective federal programs no later than 45 days from the determination of the date of withdrawal from Luther Seminary. The calculation is based upon only the amount of federal aid for which you were eligible.

The responsibility to repay unearned Title IV aid is shared by Luther Seminary and the student. The student may also be required to return funds based on the calculation. A student returns federal loan funds based on the terms and conditions of the promissory note of the loan.