Financial Aid Policies

What is Verification?

Verification is a quality-control method used by the U.S. Department of Education (DOE) to check the accuracy of information submitted on the FAFSA. All schools that disburse federal Title IV funds are required to participate in the verification process.

It is the policy of Lake Region State College to verify all students selected for verification by the U.S. Department of Education (with the exception of those specifically excluded in 668.54(b) including applicants who die or who are only eligible for unsubsidized student financial assistance) in addition to any students selected for verification by Lake Region State College. Procedures published in the current Department of Education Federal Student Aid Handbook-Application and Verification Guide are used to review, evaluate, and correct errors.

Verification Steps

1. The Financial Aid Office (FAO) will send students a request by letter and/or email outlining all forms and information that must be submitted to satisfy verification requirements. LRSC follows the guidance in the annual Verification Federal Register in regard to determining the acceptable documentation for verification based on the DOE’s verification categories.

2. If selected for verification, students will have 30 days from the time of our first request to submit all required items to the Financial Aid Office. Students who fail to provide all required documents will be sent reminder emails on a regular basis.

   Verification must typically be completed before the end of the academic year or before the student ceases enrollment, whichever occurs first. Students who fail to comply with verification requirements, including submitting documentation within required timelines, will not have Federal Title IV funds disbursed and may have Federal Title IV funds canceled.

3. After all required verification documents are provided, FAO staff will compare the documents to the applicant’s FAFSA and will make corrections if needed to the FAFSA data elements by submitting corrections electronically to DOE. Verification results that require changes to applicant information and subsequent changes to the applicant’s financial aid package will be made before the final disbursement of federal funds. A revised award letter will be sent to the financial aid applicant by email or mail for any awards change because of verification and the awards will be updated in Campus Connection.

The General Provisions of 34 CFR 668.14(f) of the Federal Register requires that Lake Region State College ensure the consistency of the information related to a student’s application for federal student aid, regardless of the source of that information. All information received must be reconciled.

If the Financial Aid Office has any conflicting information on an applicant or believes an applicant’s application information is in error, it must resolve the discrepancies before disbursing any federal student aid. The requirement to resolve conflicting data is separate and distinct from the verification requirements and procedures and supersedes any verification policies. Further, if a discrepancy is discovered after federal aid has been disbursed, it must be reconciled and the student will be required to repay any amount of aid received in excess of his or her eligibility.

Applicants are required to complete verification before Lake Region State College exercises any authority under section 479A(a) of the HEA to make changes to the applicant's cost of attendance or to the values of the data items required to calculate EFC’s.

In accordance with 34 CFR 668.16(g), if the Financial Aid Office suspects that a student, or another individual, has intentionally misreported information or altered documentation to fraudulently obtain federal financial aid funds, the office can report its suspicions and will provide the evidence, to the Office of Inspector General, U.S. Department of Education, for review. Fraud may be reported via the OIG Hotline, 1-800-MIS-USED, the OIG website: www2.ed.gov/about/offices/list/oig/hotline.html, or by calling our Regional OIG office in Denver at 303-844-0058.

The U.S. Department of Education continues to move to a more individualized verification process where only certain elements of the verification are performed on particular students.  This means that LRSC will not require the same documentation from each student. Instead, LRSC will require only documentation that is relevant to the individualized verification. Applicants will be notified by mail and email of the individual forms they will need to complete. Applicants can also view a list of required verification documents in Campus Connection under their “To Do” list.  Lake Region State College Verification Forms are posted each year on the Financial Aid Office website: Go to Forms and select Financial Aid Forms

Note: All verification items must be submitted to:

Lake Region State College
Financial Aid Office
1801 College Drive North
Devils Lake, ND 58301

Fax: 701-662-1666
Or email: lrsc.financialaid@lrsc.edu

Federal regulations require all institutions to establish a policy that determines the amount of Title IV Financial Aid a student is eligible to receive if he/she withdraws from school. The Federal Student Aid
(FSA) programs covered by these regulations include: Federal Pell Grants, Stafford Loans, Plus Loans, Federal Supplemental Educational Opportunity Grants (FSEOG), Federal Perkins Loan, and the ACG Grant.

When a student withdraws before the end of a payment period (semester), the amount of assistance the student has “earned” (can receive) is determined by the Financial Aid Office. If it is determined that
the student is eligible to receive additional funds, those funds will be disbursed. If it is determined that the student has received more funds than he/she is eligible to receive, the funds must be returned.

Consistent with Federal law, “unearned” funds must be returned to the student aid programs in the
following order:

• Unsubsidized Direct Loan
• Subsidized Direct Loan
• Federal Perkins Loan
• Federal Plus Loans
• Federal Pell Grant
• Federal SEOG Grant

In addition, LRSC returns funds to programs other than Title IV Funds. The amounts will be pro-rated to the original sources in proportion to the initial awards.

Official withdrawal:
A student who stops attending classes must formally withdraw from school to avoid failing grades. Procedures and forms for formal withdrawal are available in the Student Services Office. At the time of withdrawal, the LRSC Financial Aid Office will determine, on a pro-rata basis, the amount of student aid the student has “earned.” For example, a student who completed 30% of the payment period (semester) will be determined to have “earned” 30% of the aid he/she was originally scheduled to receive. Once a student has completed more than 60% of a payment period, he/she is eligible to receive 100% of the FSA award.

Unofficial Withdrawal:
A student who stops attending classes but does not officially withdraw is considered to have unofficially withdrawn from school. A recipient of Federal Student Aid who unofficially withdraws and receives no passing grades for the semester will be responsible for repaying all unearned financial aid received. A student must initiate and complete the formal withdrawal process to avoid failing grades. The LRSC Financial Aid Office will calculate the amount of financial aid “earned and unearned” based upon the midpoint of the semester, or based on the student’s last day of attendance/participation in academically related activity.

Post-withdrawal Disbursement:
After withdrawal, it may be determined that a student did not receive all funds “earned.” In such cases, a post-withdrawal disbursement may be due. When a post-withdrawal disbursement includes student loans, the student may choose to decline the loan funds, thereby keeping loan debt to a minimum. The post-withdrawal disbursement will be applied to tuition, fees, housing, and food charges owed to the college, and any remainder is paid to the student. Some FSA funds are not available to the student after he/she has withdrawn because of other special eligibility requirements. Some examples are:

• A first-time, first-year undergraduate student who withdraws before the thirtieth day of classes, the student will not earn any aid that they would have received had they remained enrolled past the 30th day of the payment period.
• No portion of a second or subsequent disbursement may be disbursed to a student as a post-withdrawal disbursement.
• Students participating in the Federal Work-study program are not eligible to earn Work-study funds after withdrawing from college.

Any amount of unearned grant funds the student must return is called an overpayment. The maximum amount of grant overpayment a student must repay is half of the grant funds the student received or was scheduled to receive. Students who owe overpayments as a result of a withdrawal will retain eligibility for Title IV funds for a maximum of 45 days from the earlier of: The date the school sends the student notice of the overpayment or the date LRSC was required to notify the student of the overpayment. LRSC must notify students that an overpayment must be repaid or make satisfactory arrangements to repay it within 30 days of determining a repayment is due. Lake Region State College must return any unearned funds within 45 days from the date of the institution’s determination that the student withdrew. All financial aid funds returned will be the responsibility of the student.

Revised April 16, 2015.

Lake Region State College financial aid employees are expected to always maintain exemplary standards of professional conduct in all aspects of carrying out his or her responsibilities, specifically including all dealings with any entities involved in any manner in student financial aid, regardless of whether such entities are involved in a government-sponsored, subsidized, or regulated activity. In doing so, LRSC financial aid employees should:

• Refrain from taking any action for his or her personal benefit.
• Refrain from taking any action he or she believes is contrary to law, regulation, or the best interests of the student and parents he or she serves.
• Ensure that the information he or she provides is inaccurate, unbiased, and does not reflect any preference arising from actual or potential personal gain.
• Be objective in making decisions and advising his or her institution regarding relationships with any entity involved in any aspect of student financial aid.
• Refrain from soliciting or accepting anything other than nominal value from any entity involved in the making, holding, consolidating, or processing of any student loans, including anything of value (including reimbursement of expenses) for serving on an advisory board or a part of a training that is sponsored by any such entity.

Revised Fall 2018.

Lake Region State College respects a student’s right to choose their own lender for the purpose of obtaining a student loan. LRSC also recognizes that a student may need assistance when asked for a name of a lender. To provide that assistance, the LRSC Financial Aid Office has developed a reference list of some lenders that have made loans to our students in the past. Students are reminded that the list provided is a partial list and those lender websites should be visited to make an informed decision. The LRSC Lender Reference List is managed and distributed online by a maintenance application provided by Education Assistance Corporation. This application allows for random viewing which is the viewing method used for this list.

Lenders on this partial list were selected because they have met most of the following criteria determined to meet the needs of the students at Lake Region State College:

• Serve local students as a local lender
• Provide excellent customer service
• Have maintained a good working relationship with the Financial Aid Office
• Are members of the North Dakota Association of Student Financial Aid Administrators (NDASFAA)

Since repayment benefits offered by lenders change often, the student is encouraged to do their own research to determine which lender provides the benefits that fit well for that particular student. It is felt that the student and the parent(s) are in the best position to decide which loan terms and conditions most benefit them. The purpose of providing a reference list of lenders is to help students understand what a lender is and that there are many options to consider in making their choice. The LRSC Financial Aid Office is monitoring events and information occurring on a national level and in Congress. The method used at LRSC to provide a reference list of lenders may change at any time depending on congressional action and/or Department of Education guidance concerning student loans.

The LRSC Financial Aid Office follows ethical procedures and practices in working with student
loans and the lenders and service agencies that provide them. The Financial Aid Office does not:

• Make automatic referrals to specific lenders
• Deny application with any participating lender
• Create an unreasonable delay in processing applications with any lender

Lender visits and gifts of nominal value that are offered may be accepted. Under no circumstance is lender offers to be accepted in exchange for preferring any particular lender. Lake Region State College does not enter into arrangements with any lender beyond the cooperation necessary to provide student loans and services to our students.

Revised 2018