Title IV Programs

To help students, the federal government – specifically the U.S. Department of Education – makes money available to pay for education expenses as a post-secondary school (such as college, vocational school, graduate school). The federal aid programs are called Title IV programs.

Federal student aid covers such expenses as tuition and fees, room and board, books and supplies, and transportation. Aid also can help pay for a computer and for dependent care.

The three main categories of federal student aid are:
  • Grant—Grant money usually doesn’t have to be repaid. Most U.S. Department of Education grants are based on the student’s financial need.
  • Work-study—Work-study money is earned by a student through a job on or near campus while attending school and does not have to be repaid.
  • Loan—Loan money must be repaid with interest.

Who gets federal student aid?

Our most basic eligibility requirements are that you must:

  • be a U.S. citizen or an eligible noncitizen,
  • have a valid Social Security number, and
  • show you’re qualified to obtain a postsecondary education by
    • having a high school diploma or General Educational Development (GED) certificate;
    • meeting other federally approved standards your state establishes; or
    • completing a high school education in a homeschool setting approved under state law.

How do you apply for federal financial aid? Here is a step-by-step guide to applying through the Free Application for Federal Student Aid (FAFSA).

Once you finish this great tutorial created by the government, you’ll understand much better.

For details about the federal student aid programs, including maximum annual amounts and loan interest rates, visit www.studentaid.ed.gov/guide.


Below are the statements Laurel University provides to comply with regulations and make sure that everything this is clear. If you have further questions, please check with our financial aid office.

Financial assistance to students from Federal Title IV funds is awarded under the assumption that the student will attend Laurel University for the entire payment period for which the assistance is awarded. If the amount disbursed to the student is greater than the amount the student earned, unearned funds will be returned. If the amount disbursed is less than the amount the student is eligible to received, the student will receive a post-withdrawal refund of the earned aid.

When a student withdraws from attending Laurel U and received financial aid from any of the Title VI programs, the institution will process the Return To Title IV worksheet using the Departments software.  This process is done up to the 60% point of the payment period in which the aid was received.  After the 60% point in the payment period or period of enrollment, a student has earned 100% of the Title IV aid received during the payment period. A student who receives a cash disbursement to assist with living expenses and then withdraws, drops out, or is expelled, may be required to repay money to the aid programs.  Refund refers to money paid toward school charges that must be returned to the financial aid source due to withdrawing from school.  Laurel University has designed the following policy and procedure to ensure proper accountability when a student leaves.


Refund Policy for all Students

Due to the fact that there is not an established policy from the State of North Carolina and/or from the Accrediting Association of Bible Colleges, the Financial Aid Office calculates the return of funds by using the Return to Title IV Worksheet and software provided by the Department to determine whether the student has earned federal aid awarded. The following determinations are done using the worksheet:

  • Determine the percentage of the enrollment period completed by the student.  (Days attended /Days in payment period= percentage completed) If the calculated percentage exceeds 60%, then the student has earned all Title IV aid for the period.
  • Apply the percentage completed to the Title IV aid awarded to determine the student’s eligibility for aid. ( Total aid disbursed x percentage completed = earned aid)
  • Determine the amount of unearned aid to be returned to the Title IV programs. (Total disbursed aid – earned aid = unearned aid.)
  • Determine who is responsible to return the aid. (Institution or student).  Notify student if they must return aid, and update student’s withdrawal status in NSLDS system.
  • Return the Institutions portion based on the type of aid disbursed to the appropriate programs within 30 days in the order mentioned below.

Refund Distribution of Financial Aid Recipients

The institution is responsible for calculating the percentage and amount of Title IV assistance the student did not earn and return the funds to the respective programs.  The returned funds must be refunded to the following resources in specific order until the amount of the school’s responsibility has been satisfied.  The order is:

  • Unsubsidized Federal Direct Loans
  • Subsidized Federal Direct Loan
  • Federal Direct PLUS Loans
  • Federal PELL Grant
  • FSEOG
  • Other Title IV Assistance and other aid awarded

When a student withdraws from Laurel University, the procedures listed below should be followed:

1.   A student is required to initiate the withdrawal process by obtaining the “Withdrawal Form” from the Registrar’s Office.  The student must take the “Withdrawal Form” to their Advisor and the respective offices listed.  It is the student’s responsibility to verify that the Financial Aid Office (FAO) or Business Office receives this form to perform a refund calculation.

2.   The FAO and Business Office will complete the appropriate refund/repayment calculations using the Departments worksheet. Once the appropriate refund amount has been determined, the refund will be allocated in the federally required order.  Laurel University will distribute or return the funds within the 30 day requirement.


Withdrawal Procedures

When a student receiving federal aid ceases attendance the withdrawal date (as defined by federal regulations) will be used to determine the charges to the student.  The student must initiate the process of withdrawal (official withdrawal) by completing the required form.  If a student ceases enrollment without contacting the institution, the attendance class roster will be used (administrative withdrawal) to determine the last date of attendance.


NOTE: Due to the ever-changing nature of financial aid, please consult Laurel U’s Financial Aid Office regarding the latest regulations and requirements for applying for financial aid.