Your Right to Know

In compliance with Section 487 of the 2008 Reauthorization of the Higher Education Act of 1965, as amended, Lake Area Technical College (LATC) has developed the following Code of Conduct Requirements. This provision, signed into law by President Bush in August 2008, requires every institution participating in federal financial aid programs to adopt a code of conduct and prominently display it on its web site.

The seven primary elements of the Code of Conduct include:

• Ban on revenue-sharing arrangements
• Gift ban
• Contracting arrangements prohibited
• Interaction with borrowers
• Prohibitions on offers of funds for private loans
• Ban on staffing assistance
• Advisory Board compensation

Revenue Sharing – Neither LATC nor any employee of LATC who has responsibilities with respect to financial aid shall enter into any revenue-sharing agreement with any lender.

Gifts – Neither LATC nor any employee of LATC who has responsibilities with respect to financial aid, nor any members of their family, shall accept any gift from a lender, guarantor, or servicer of education loans. For this purpose, this includes any gratuity, favor, discount, entertainment, hospitality, loan, or other item having a monetary value of more than a de minimus amount, as well as a gift of services, transportation, lodging, or meals, whether provided in kind, by purchase of a ticket, payment in advance, or reimbursement after the expense has been incurred.
This does not include any standard material, activities, or programs on issues related to a loan, default aversion, default prevention, or financial literacy, such as a brochure, a workshop, or training. Food, refreshments, training, or informational material furnished to an officer or employee of an institution, or to an agent, as an integral part of a training session that is designed to improve the service of a lender, guarantor, or servicer of education loans to the institution, if such training contributes to the professional development of the officer, employee, or agent.

Contracting Arrangements – No employee of LATC who has responsibilities with respect to financial aid shall accept from any lender any fee, payment, or other financial benefit as compensation for any type of consulting arrangement.

Interactions with Borrowers – All Federal Stafford Loans are now through the Federal Direct Loan Program, administered by the Department of Education as of July 1, 2010. Borrowers no longer have a choice in lender for their Federal Stafford Loans. LATC shall not, for any first-time private alternative loan borrower, assign, through award packaging or other methods, the borrower’s loan to a particular lender; or refuse to certify, or delay certification of, any loan based on the borrower’s selection of a particular lender.

Offers of Funds for Private Loans – LATC shall not request or accept from any lender any offer of funds to be used for private education loans, including funds for an opportunity pool loan, to students in exchange for the institution providing concessions or promises regarding providing the lender with a specified number of loans made, insured, or guaranteed; a specified loan volume of such loans; or a preferred lender arrangement for such loans.

Staffing Assistance – LATC shall not request or accept from any lender any assistance with call center staffing or financial aid office staffing.

Advisory Board Compensation – Any employee of the LATC financial aid office, or who otherwise has responsibilities with respect to education loans or other student financial aid of LATC, and who serves on an advisory board, commission, or group established by a lender, guarantor, or group of lenders or guarantors, shall be prohibited from receiving anything of value from the lender, guarantor, or group of lenders or guarantors, except that the employee may be reimbursed for reasonable expenses incurred in serving on such advisory board, commission, or group.

Private Education Loans
Private education loans are non-federal loans offered by lenders or credit unions that participate in these loan programs. Private loans are another source of funding for students in addition to their financial aid package and can help fill in any gaps in funding to help cover educational costs. A private education loan must be certified by the LATC Financial Aid Office. It cannot exceed the cost of attendance.

Before applying for a private education loan, LATC and the private education loan lenders encourage you to first apply for federal financial aid through the Free Application for Federal Student Aid (FAFSA). The FAFSA determines your eligibility for federal grants, federal work study, and federal student loans. Federal grants are an entitlement; you do not pay these back. The Federal Direct Loans (Subsidized and Unsubsidized) may have terms and conditions that are more favorable than private education loans. We encourage you to first explore your eligibility for federal financial aid through the FAFSA.

When you are ready to apply for a private education loan, please carefully review all options available to you so that you can make an informed decision. Private education loans are based on creditworthiness. The initial step of the private education loan process is to apply for a credit check by the lender. You may be asked to obtain a co-signer. Each lender’s private loan progra
is different so the interest rate, fees charged, minimum and maximum amount you can borrow, repayment terms, etc. will vary by lender.

LATC uses a third-party entity, FastChoice, to provide private education loan information and a list of lenders to our students. This list is based on historical borrowing of our students. New lenders are added based on options that may be beneficial to our students. Because of the limited number of private education loan lenders willing to make loans with our students because we are a two year college, LATC is not able to provide a comprehensive list of private education loan lenders.

If you elect to borrow a private education loan through a lender other than the lenders we currently utilize, LATC cannot refuse to certify a private education loan for you simply because the lender is not one of the lenders on our FastChoice list. LATC cannot endorse or recommend a specific lender(s) and you are free to borrow from any participating lender.

The Private Student Loan Transparency and Improvement Act went into effect on February 14, 2010 which requires lenders to obtain disclosure information and a self-certification form from a borrower prior to the loan being disbursed. This is in addition to the application, co-signer application (if applicable), promissory note, and school certification. This results in a 3-4 week processing time for a private education loan. Most lenders will provide the self-certification form to you. You can also click here for the Private Education Loan Applicant Self-Certification document.

If you have questions regarding this policy, please feel free to contact the LATC Financial Aid Office at 605.882.5284 or 800.657.4344 or via e-mail at financialaid@lakeareatech.edu.

Refunds of tuitions/fees for financial aid recipients will be made in accordance to the U.S. Department of Education Return of Title IV Funds. Students not receiving financial aid will receive a refund based on the Institutional Refund Policy. Both the LATC Institutional Refund Policy and the Department of Education policy provide for refunds through the 60% point of the semester. Further information and examples of the refund policy are available by contacting the Financial Aid Office at LATC.

Return of Title IV Funds (R2T4) – Revised 10.28.2025

 The Return of Title IV Funds or R2T4 policy applies to students who withdraw or are administratively withdrawn from Lake Area Technical College during the first 60% of the semester unless a student qualifies for a module exemption. All students who receive federal financial aid funds (excluding Federal Work Study) are subject to this R2T4 policy. 

Students not receiving federal financial aid will receive a refund or have any outstanding balance due adjusted based on the LATC Institutional Refund policy. 

Withdrawal Date
A student’s withdrawal date is determined by one of the following:

• The date the student initiated the withdrawal process or officially notified LATC of their intent to withdraw.
• The midpoint of the semester for a student who leaves without notifying LATC, unless a Last Date of Attendance can be determined.
  • The student’s documented last date of attendance at an academically-related activity. Examples include: quiz, test, assignment, participation in a discussion group, or documentation of attendance if instructor documents daily attendance.

Earned and Unearned Aid

• Title IV funds are earned at a percentage rate on a per day basis up to the 60 percent point of the semester.
• Title IV funds are 100 percent earned if the withdrawal date is after the 60 percent point in that period.
• If the date a student withdraws is prior to or on the 60% point of the semester, the Return of Title IV Funds calculation is required to determine the portion of the aid disbursed that was “earned” by the student before his or her withdrawal date.
• The “unearned” Title IV funds must be returned to the respective federal aid programs.
• Unearned aid is the amount of disbursed Title IV aid that exceeds the amount of Title IV aid earned based on the percentage of the semester completed.
• LATC uses the Return to Title IV funds application on PowerFAIDS to perform the R2T4 calculation. It mirrors the Department of Education’s refund calculator
• If a student withdraws from LATC during the first 10 days of a fall or spring semester, or the first 5 days of a summer semester, the institution may exercise its right to treat the student as never having attended. To be eligible for this exemption from the Return to Title IV (R2T4) calculation, the student must be able to return all Title IV funds that were disbursed or made available to them. This option is not automatic and is at the discretion of the institution.

R2T4 Calculation 
LATC utilizes the Return to Title IV Funds application on PowerFAIDS to perform the calculations. Copies of the worksheet are distributed as follows: 

• LATC Business Office retains the copy attached to original withdrawal form. The original withdrawal form is then scanned into the student’s permanent academic file.
• Copy attached to the copy of the withdrawal form that is filed in the student’s financial aid file.
• Copy is mailed to the student (when there is money owed by the student and/or LATC).

If the R2T4 calculation results in an amount that exceeds LATC’s portion, the student will then be responsible to repay some of those funds. 

Students and other interested persons wishing to see samples of the R2T4 calculation worksheet can contract the Financial Aid Office. We will provide a copy of the sample documents from the FSA Handbook. 

Return of Funds
The Federal government prescribes the order in which Title IV funds must be returned to the federal programs: 

• Federal Direct Unsubsidized Loan 
• Federal Direct Subsidized Loan 
• Federal Direct PLUS Loan 
• Federal Pell Grant 
• Federal Supplemental Educational Opportunity Grant (SEOG) 
• Iraq and Afghanistan Service Grant – No Longer Exists with start of 24-25 year 

LATC Responsibility

• LATC is responsible for distributing the “Return of Title IV Funds” information to students. This is provided in the Student Handbook and the LATC Catalog.
• Identifying students to which this requirement applies.
• Completing the R2T4 calculation for students to whom it pertains.
• Should the R2T4 calculation result in a credit balance on the student’s account, LATC will disburse those funds to the student within 14 days of the calculation.
• Returning any Title IV funds required by the R2T4 calculation as soon as possible but no later than 45 days after determining the student has withdrawn.
• All student loan borrowers are sent the required Exit Loan Counseling information for Federal Direct Loans.

Student Responsibility

• Student is responsible for returning to the Title IV programs any funds that were disbursed to the student that the student did not earn as determined by Step 10 of the R2T4 calculation.
• Student is contacted by letter (via regular mail) when an overpayment is due to a Title IV Grant program.
• Student has 45 days from the date of letter to make payment or establish a payment plan with the Director of Financial Aid.
• Grant overpayments not paid in full within 45 days or within an agreed upon payment plan established will be turned over to the Department of Education for collection. Student is notified by letter (via regular mail) that the account has been turned over.

Post-Withdrawal Disbursements
A student may be eligible for a post-withdrawal disbursement if, prior to withdrawing, the student earned more federal financial aid than was disbursed.

If the post-withdrawal disbursement includes loan funds, LATC is required to obtain the student’s permission before disbursing the funds. The student then can decline some or all the loan funds to avoid incurring additional debt. If a student is eligible for a Federal Direct Loan post-withdrawal disbursement, LATC will send the student a letter offering the funds within 30 days of determining the student’s withdrawal; the student then has 14 days from the dates of the offer to accept or decline the funds by returning the signed and dated offer to the LATC Financial Aid Office. Should the student accept the post-withdrawal disbursement of Federal Direct Loans, those accepted funds will be applied to the students account within 15 days. 

Without the student’s permission, LATC can use all or a portion of the post-withdrawal disbursement of grant funds to pay outstanding tuition and fees. The student’s permission is needed, however, to use a post-withdrawal disbursement for all other school charges. If the student does not provide their permission, the funds will be offered to the student. However, it may be in the best interest of the student to allow the school to apply the funds to reduce the student’s other debt at the school. Should the student be eligible for a post-withdrawal disbursement of Federal Grants, LATC will apply those funds to the students account within 45 days of determining the student’s withdrawal. 

It is important for a student to remember that by accepting a post-withdrawal disbursement of loan funds, the student is increasing their student loan debt that must be repaid under the terms of the Master Promissory Note. Accepting a post-withdrawal disbursement of grant funds will affect the student’s Pell Grant Lifetime Eligibility Used (LEU) should the student continue their education later. 

Unofficial Withdrawals

• Any student who fails to officially withdraw from LATC and stops attending classes and receives an “F” grade for all courses for the semester and an instructor cannot document a last date of attendance, the Return of Title IV Funds policy requires LATC to calculate the “earned” amount based on the 50 percent point of the semester. 
• Unearned federal aid must be returned as described above. 
• If a student was disbursed aid after the 50 percent point of the semester, the student is assumed ineligible for those funds and will be required to return those funds. 

Pell Grants and Non-Standard Class Start Dates

• As part of the withdrawal processing by the Financial Aid Office, a copy of the student’s schedule is printed and reviewed to ensure that all classes had started prior to the withdrawal date. 
• If a student was paid Pell Grant at a certain enrollment intensity, but the student had classes that started later in the semester, the adjusted Pell Grant amount is used in the R2T4 calculation.
  • Example: Student withdraws on October 1. Student’s Pell Grant was paid based on 12 credits (full-time). Student had 9 credits that started the first day of school and 3 credits that would not start until November 1. The student would only have been eligible for 75% based on enrollment intensity. 
• The amount for which the student was not eligible is returned by the Financial Aid Office to the Federal Pell Grant fund. An adjustment is made to the Student Account and the student is responsible for repaying the Pell overpayment amount to LATC. 

Official Withdrawals
Any student wishing to withdraw from Lake Area Technical College should visit with his or her program department supervisor. The Director of Enrollment or Registrar must be contacted to initiate the withdrawal process. (In the absence of those individuals, the Retention Coordinator, Counselor, Financial Aid Representative, Assistant Director of Financial Aid, Director of Financial Aid, or an administrator in Student Services may be contacted.) 

Unofficial Withdrawals
Any student who leaves LATC without initiating the official withdrawal process will receive the following for grades: 

• WP – if documented last date of attendance was prior to semester midpoint 
• WF – if documented last date of attendance was after semester midpoint. 

The student’s withdrawal date will either be the: 

1. date the student began the withdrawal process or officially notified LATC of his or her intent to withdraw; 
2. semester midpoint for a student who leaves without notifying LATC; or 
3. student’s last date of attendance at a documented academically related activity. Examples include: quiz, test, assignment, participation in a discussion group, or documentation of attendance if instructor documents daily attendance. 

Title IV Financial Aid Recipients
All recipients of Title IV federal financial aid who officially withdraw from LATC will have their withdrawal processed in accordance with the federal Return of Title IV Funds (R2T4) calculation. If the R2T4 calculation results in a balance owed to LATC, the amount due will be determined using the Institutional Refund Policy worksheet. Students who withdraw will not be required to repay LATC for any portion of unearned Title IV aid that is returned to the federal programs on their behalf. If a student withdraws from LATC during the first 10 days of a fall or spring semester, or the first 5 days of a summer semester, the institution may exercise its right to treat the student as never having attended. To be eligible for this exemption from the Return to Title IV (R2T4) calculation, the student must be able to return all Title IV funds that were disbursed or made available to them. This option is not automatic and is at the discretion of the institution. 

Non-Title IV Financial Aid Recipients
All non-Title IV fund recipients will have their withdrawal paperwork processed in according with the LATC Institutional Refund Policy. LATC’s Institutional Refund Policy follows the R2T4 policy. 

The Institutional Refund Policy applies only when a student officially withdraws from the institution. It does not apply to individual course drops. 

Students who drop a class (but do not withdraw from the institution) are eligible for a 100% refund only if the drop occurs within the following timeframes: 

• Fall or Spring Semester: Within the first 10 calendar days 
• Summer Semester: Within the first 5 calendar days 

If a student withdraws from LATC during the first 10 days of a fall or spring semester, or the first 5 days of a summer semester, the institution may exercise its right to treat the student as never having attended. 

To be eligible for this exemption from the Return to Title IV (R2T4) calculation, the student must be able to return all Title IV funds that were disbursed or made available to them. This option is not automatic and is at the discretion of the institution. 

Refunds of tuitions/fees will be made in accordance to the U.S. Department of Education Return of Title IV Funds (see Return of Title IV Funds policy) for all students. This policy change was made effective for the 2014-2015 academic year shortly after we signed the Department of Defense Memorandum of Understanding. These refund policies apply only to students who completely withdraw from LATC. 

Semester Based Programs 
In order to comply with the Veterans’ Administration Principles of Excellence, LATC has aligned its Institutional Refund Policy with the Department of Education’s Refund Policy. ED’s policy allows for a refund through 60% of enrollment. 

In calculating the amount refunded or due of a student, the Return to Title IV funds application on PowerFAIDS is used to calculate the percentage of time attended by the student. This number will then determine the percentage of tuition and fees refunded to the student, if the bill is paid in full, or will determine the percentage of tuition and fees owed by the student, if the bill is not paid in full. 

Example #1 
The fall semester is 120 days in length. 
The student attends for 15 days and withdraws. 
15/120 = 13% attended. 
The student paid his bill of $2,400 in full. 
100% – 13% = 87%. $2,400 x 87% = $2,088. 
The student would receive a refund of Tuition and Fees in the amount of $2,088. 

Example #2 
The fall semester is 120 days in length. 
The student attends for 20 days and withdraws. 
20/120 = 17% attended. 
The student has not paid his bill of $2,800. 
$2,800 x 17% = $476. 
The student would owe $476. 

No refund of tuition and fees will be made after 60% of the enrollment period has been completed. 

Please see corresponding Institutional Refund Policy Worksheet – Semester Based. 

Lake Area Technical College will verify all FAFSA applications selected by the FAFSA Processor; we also reserve the right to institutionally select a student for verification if not previously selected by the FAFSA processor. Student’s selected for verification will receive a letter from the LATC Financial Aid Office requesting documentation. 

Submission of Documentation
No Federal Student Aid will be disbursed to a student selected for verification until documentation has been received and processed by the LATC Financial Aid Office. Documentation received more than 120 days after the last date of enrollment (or date published by the Department of Education, whichever is earlier) will not be processed and no Federal Student aid will be disbursed. 

Request for changes to the student’s FAFSA after receiving Federal Student Aid
Student’s who request changes or corrections to their FAFSA Form after receiving a Federal Student Aid disbursement could be selected for verification by the U.S. Department of Education. In this event, the student will receive a request from the LATC Financial Aid Office to provide documentation to validate your aid record according to the following deadlines: 

• Federal Pell Grant: If the student has already received Federal Pell Grant funds prior to being selected for verification, they must provide requested documents by the date published by the Department of Education or no later than the student’s last date of attendance for the academic year, whichever comes first. Subsequent disbursements of Federal Pell Grant funds will be withheld until the verification process has been completed. 
• Federal Direct Loans, Supplemental Educational Opportunity Grant (SEOG), and Work-Study: Requested documentation must be received within 60 days of the first notification that documentation is needed. Subsequent disbursements will be withheld and Federal Work-Study employment will be suspended until the verification process is complete. 

Changes or Corrections as a Result of Verification Procedures
LATC Financial Aid Office will send a letter to communicate these changes and notify the student if repayment of Federal funds is necessary, if the student has already received a disbursement of Federal Student Aid. 

Corrections will be submitted by the LATC Financial Aid Department via the FAFSA Partner Portal. Correction submission information will be maintained in the student’s financial aid file and upon receipt that the correction has been accepted by the FAFSA Processor, the student will be notified via email or letter. Should a correction need to be submitted by the student, the LATC Financial Aid Office will send notification either by email or letter to notify the student of the change they need to make and how to make corrections to their FAFSA application. 

Failure to repay Federal Student Aid for which the student has been determined ineligible will make the student ineligible for further Federal Student Aid (Grants, Loans, Work-Study, Etc.) at any institution until the aid is repaid in full. The student’s account will also be referred to the U.S. Department of Education to record their ineligibility for further Federal Student Aid. 

Fraudulent Information 
Should the institution suspect that a student or individual has misreported information or altered documentation to fraudulently obtain federal funds, the LATC Financial Aid Office will report those suspicions and provide evidence to the Office of Inspector General (OIG) by mail, web submission, or by contacting the OIG Hotline.