Financial Aid Policies

Policy for Issuing Cash Refunds to Financial Aid Students

Financial aid is posted on a rolling basis as financial aid awards are processed. If the application of financial aid or other resources to a student’s account results in a credit balance (excess cash), a refund is issued to the student. The University’s goal is to process refunds via direct deposit on a daily basis and via paper check at least once per week but never later than 14 days after the date that the credit balance occurs. Please note that dropping courses can impact a financial aid award.

The amount of financial aid awarded is determined by many factors including the number of hours for which a student enrolls. A reduction in hours may reduce the amount of financial aid a student is eligible for during a term with the possibility of being completely ineligible for financial aid for the term. In addition, federal regulations require that a student complete more than 60% of a term to earn all Title IV funds awarded for that term.

Policy on Course Non-Attendance

This policy pertains to student non-attendance in registered courses. Students who do not attend any enrolled course during the first two weeks of the class and do not inform the instructor of an intention to join the course will be dropped from the class.

This drop will result in a change in enrollment status for the term as well as adjustments in any financial aid that had been previously awarded. Federal regulations require that a student establish attendance in a course in order to receive aid for it. Failure to attend courses for which a student is registered will result in financial aid revisions and may result in a balance due to the University.

Attendance is considered actively engaging in a course. In on campus courses this would be defined as attending the class in person. Online courses define attendance as either posting to a discussion board, submitting assignments, reading classmates postings, etc. Simply logging into the course without actively participating is considered non-attendance and will result in being dropped from the course.

Please note that students who wish to drop a class during the add/drop week should still follow University policy and contact Academic Advising to change their enrollment. Non-attendance is different from withdrawal. Please review the Withdrawal Policy for more details.

Note: Tardiness policies and how they affect attendance are based upon individual course policy and are located in the course syllabus. 

Policy on Online Attendance and Participation

Federal regulations require that online students establish attendance/participation in coursework each term to be eligible for federal financial aid. National Louis University verifies student attendance in accordance with this regulation.

For online coursework, logging into the class in D2L is not sufficient, by itself, to demonstrate attendance by the student. Students must establish a record of participation in academically related activities in order to comply with this requirement. These activities include but are not limited to:

1. Physically attending a class where there is an opportunity for direct interaction between the instructor and students (on campus/blended courses only)

2. Submitting an academic assignment;

3. Taking an exam, an interactive tutorial or computer-assisted instruction;

4. Attending a study group that is assigned by the school;

5. Participating in an online discussion about academic matters;

6. Initiating contact with a faculty member to ask a question about the academic subject studied in the course.

Students who only do one of the following are not defined as establishing attendance:

1. Logging into an online class without active participation or

2. Participating in academic counseling or advisement

Students who have not established attendance/participation in online courses by the end of the second week of class will be dropped by the university by the based on the Policy on Course Non-Attendance, which may be found here.

Student Withdrawal and Return (Loss) of Federal Title IV Funds

The Student Finance Office is required to recalculate the percentage of financial aid earned by a student who officially withdrew before completing more than 60% of the quarter or who failed to pass at least one class in a term and ceased attendance at some point (unofficial withdrawal). The funds subject to this calculation include the Federal Pell Grant, Federal Supplemental Education Opportunity Grant, Teacher Education Assistance for College and Higher Education Grant, Iraq Afghanistan Service Grant, Direct Subsidized and Unsubsidized Loans, Direct Parent PLUS Loan, and Direct Graduate PLUS loan. We use a calculation that determines what percentage of the aid a student earned and what amounts may need to be returned. This is called a Return of Title IV calculation and must be done within federally mandated timeframes.

Please note that the Return of Title IV calculation is separate from the National Louis University tuition refund policy. Students who withdraw from classes may end up having an account balance with the University after the required financial aid adjustments are made. Learn more about NLU's Withdrawal Policy.

The financial aid awarded was based on enrollment in the entire term and any unearned funds must be returned by National Louis University and/or the student. A portion of any refund the student received may need to be returned to the University.

We use the date a student officially withdraws from classes to calculate the percentage of the term completed. For students who cease attendance without officially withdrawing from school the midpoint in the term or the last date of an academic activity are used to calculate the percentage of the term completed.

Any funds that need to be returned are done so in the following order:

1. Direct Unsubsidized Loan
2. Direct Subsidized Loan
3. Direct Graduate PLUS Loan
4. Direct Parent PLUS Loan
5. Federal Pell Grant
6. Federal Supplemental Educational Opportunity Grant (SEOG)
7. Federal TEACH Grant
8. Iraq Afghanistan Service Grant

Click here to learn more about Consumer Information on Return of Title IV.

Financial and Physical Hardship Policy

Consistent with the Illinois Student Debt Assistance Act, this policy establishes processes and procedures to assist students in limiting their student debt when a physical or financial hardship requires the student to withdraw from the College. This policy can be found here