Claremont Lincoln University (CLU) complies with federal regulations governing the return of unearned Title IV Federal Student Aid and U.S. Department of Defense Tuition Assistance (TA) funds. These policies apply to students who withdraw (officially or unofficially), drop all courses, are administratively dismissed, or are called to active military duty before completing the required portion of a term.

Both the Return to Title IV (R2T4) and Tuition Assistance return calculations are conducted separately and may result in different obligations.

Return of Title IV Funds (Federal Financial Aid)

This policy applies to students receiving Title IV Federal Aid, including but not limited to Federal Direct Loans, Pell Grants, and Iraq & Afghanistan Service Grants. When a student withdraws before completing more than 60% of the term, a Return to Title IV calculation is required.

The withdrawal date is determined by one of the following:

• Official withdrawal
• The date the student begins the official withdrawal process or provides official notification. If both circumstances occur, the earlier withdrawal date will be used.
• Unofficial withdrawal
• The midpoint of the payment period or period of enrollment, or the last date of documented academic activity, whichever is later, when CLU becomes aware the student ceased academic activity.

Based on these federal guidelines, any student who receives federal financial aid and does not complete at least 60% of the term is responsible for repaying a portion of the aid they received. A student who remains enrolled beyond the 60% point is considered to have earned 100% of their financial aid.

The portion of financial aid to be returned is determined by the percentage of financial aid not earned by the student. The percentage of unearned aid is calculated using the following formula:

% Earned} = #of days completed up to withdrawal date/Total number of calendar days in term

Any unearned portion is returned to the appropriate federal program within 45 days of CLU’s determination that the student withdrew.

CLU will return Title IV funds in the following order:

• Unsubsidized Direct Loans (other than Direct PLUS loans)
• Subsidized Direct Loans
• Federal Perkins Loans
• Federal Pell Grants for which a return of Title IV funds is required
• Iraq & Afghanistan Service Grants for which a return of Title IV funds is required.

The Return to Title IV Funds policy is separate from the University’s refund policy. A student who withdraws from the University prior to the 60% completion point may be required to return unearned federal aid resulting in a balance owed to the University for tuition and fees.

Post-Withdrawal Disbursements

If a student has earned more aid than was disbursed, CLU will offer a Post-Withdrawal Disbursement (PWD). Students will be notified within 30 days of the determination date and must accept loan funds within 14 days of notification. Grants will be disbursed automatically unless the student declines.

Overpayments

If a student receives an overpayment, CLU will notify the student in writing, outline repayment options, and refer unresolved debts to the U.S. Department of Education’s Default Resolution Group if not repaid.

Return of Department of Defense (DoD) Tuition Assistance (TA)

This policy applies to all active-duty service members, National Guard members, and Reservists using DoD TA benefits.

Calculation of Earned TA

The earned portion of TA is calculated as:

% Earned} = #of days completed up to withdrawal date/Total number of calendar days in term

For CLU’s six 8-week (56-day) terms, the minimum schedule is:

If withdrawal occurs between these defined points, earned TA is calculated proportionally based on the actual day of withdrawal.

Withdrawal Date Determination

• Official Withdrawal
  • Date withdrawal process begins or official notification is provided (earlier date is used if both occur).

• Unofficial Withdrawal
• Midpoint of payment period or last date of documented academic activity, whichever is later.
• Military Orders
• Effective date on official orders, unless otherwise documented.

Notification and Documentation

Students are encouraged to consult their Educational Services Officer (ESO) before withdrawing. CLU will notify the appropriate military branch within 14 days of the determination date for TA recipients who withdraw. Official documentation (e.g., military orders) may be required.

Refunds and Balances

Returned TA funds are sent directly to the military branch and may result in a tuition balance owed by the student to CLU.

Readmission of Service Members and Reservists

In compliance with 34 CFR § 668.18 and the Uniformed Services Employment and Reemployment Rights Act (USERRA), CLU will promptly readmit any service member or reservist who must suspend studies due to service obligations. Students will be readmitted to the same academic program (or closest equivalent) with the same enrollment status, academic standing, and tuition/fee rate as when they left, unless covered by military benefits. Notification of intent to return must occur:

• Within three years after completion of service, or
• Within two years after recovery from a service-related injury.

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