Refund of US Federal Education Loan Funds

For new students:

Offer acceptance deposit paid by you (not funded by US Federal education loans) are fully refundable. If you decide to discontinue after accepting your offer but before course commencement, please contact the Admissions team at to complete the Discontinuation of Acceptance and LTU Refund application.

Additional information on La Trobe University’s Refund Policy and Procedure can be found here.

For current students:

The University must process the Return of Title IV Funds to the US Department of Education in the following events where you:

  1. withdraw or are discontinued from a course after commencing,
  2. takes Approved leave of absence (LOA) from the University, or
  3. underload your enrolment below the half-time enrolment, or
  4. change your enrolment to any subject that is not eligible for award of the Federal Education loans resulting in the course being deemed ineligible.

The University must process the Return of Title IV Funds to the US Department of Education, where the University has disbursed unearned Direct Loan funds, either to your fee account or your bank account towards living expenses. Any unearned Direct Loan funds must be returned to the US Department of Education no later than 45 days from when the determination is made.

Pro-rata refund calculations apply for all US Direct loan students, where you have withdrawn, been discontinued or is on LOA, having completed less than 60% of the study period.

If you withdraw, are discontinued or on LOA, having completed 60% or more of the study period, the loan funds are deemed earned by you/ the institution, and no tuition fees are refunded to you or the US Department of Education.

How the withdrawal or LOA date is determined?

The date of withdrawal is the date that you withdraw from your course via the University’s Student System or the first day of the approved leave of absence as recorded on the University’s Student System.

If you do not officially withdraw or take an unapproved leave of absence from your course, the University will decide on the withdrawal date or the leave of absence start date.

If the notice was not provided due to circumstances beyond your control, the University will request supporting documents for any circumstances beyond your control and the withdrawal date will be the date on which the circumstance/s occurred.

For other reasons or where a reason cannot be determined, the withdrawal date will be the midpoint of the payment period.

How the Direct loan funds earned is determined?

The calculation of earned Direct Loan is based on a percentage of attendance, which is determined by the number of days attended, divided by the total number of days in the relevant study period.

The number of days attended for the relevant study/ loan period is based on the number of days from the first day of the study/loans period to the withdrawal date.

The total number of days for the study period, on first day of the study/loan period to the last date of the study/loan period excluding any breaks of 5 working days or more.

Return of Direct loan funds while remaining enrolled in a course

If you change your subject enrolment resulting in you dropping below half time enrolment or enrolled on ineligible subjects, you are deemed to be ineligible for the award of Direct loan funds. Any funds disbursed to your University fee account or your bank account must be returned to the US Department of Education no later than 45 days from when the determination is made.

Determination on Return of Title IV funds is made by the US Financial Aid office, and any queries post-withdrawal should be sent to

The unearned portion must be returned to the US Department of Education as follows:

  1. The University will return a portion of the disbursement transferred to your fee account equal to the unearned amount up to the amount transferred to your fee account
  2. You must return the balance of the unearned funds.
  3. The unearned amount of Direct Loan funds must be returned in accordance with the initial loan disbursements in the following order:
    1. Direct unsubsidised Loans
    2. Direct subsidised loans
    3. Direct Plus loans

Where your portion of unearned funds is not yet transferred to your bank account, the University will pay your return on your behalf with your written permission. In the case that the unearned aid results in a balance due, the University shall email a revised tuition fee invoice to you and you must repay those funds.

You are strongly recommended to also refer to the information on the Title IV program requirements for further details on treatment of Title IV funds.

How will I get notified of return of funds requirements?

If you withdraw or are granted an approved leave of absence, the University Financial Aid officer will notify you of any return of any unearned Direct Loan funds via email sent to your LTU email and personal email account listed on the Master Promissory Note. The notification will include information on the amount of unearned Direct Loan funds and whether the University will return funds on your behalf.

For further information, please contact the La Trobe University Financial Aid office at