RETURN OF TITLE IV FUNDS POLICY
The Higher Education Amendments of 1998 mandate a new Federal Return of Funds Policy effective Fall Semester, 2000. This policy affects all students receiving Title IV Federal Financial Aid (Pell Grant and Supplemental Education Opportunity Grant). Federal Work-Study funds are excluded from this policy. Financial Aid students who completely withdraw from all courses, officially, by unofficial instructor drop, or by administrative drop, on or prior to the sixty percent (60%) point of the term will be subject to the Return of Title IV Funds Policy.
Title IV aid is earned in direct proportion to the length of time a student is enrolled. The period of time during which a student is enrolled is the percentage of aid earned by the student. The withdrawal date determines the calculation of the percentage of aid earned. Students wishing to officially withdraw should complete the official withdrawal form in Student Services. The percentage of Title IV aid earned will be calculated as follows:
Number of days completed by student = Percent of term completed
Total number of days in term (minus any breaks of 5 days or more, including weekends)
Students who remain enrolled past the 60% point earn all aid for the term. The unearned percentage of Title IV aid (100% -percent of term completed) must be returned to the U.S. Department of Education by the college and/or the student. See example:
John withdraws on September 18 (33 days completed)/ (115 days in term - 5 day Fall Break) = 30% of term completed):
|Pell Grant Awarded||+ 1000|
|John used for institutional charges||- $400|
|John used for other expenses||- $600|
|John earned 30% of award||+ $300|
|John did not earn 70% of award||- $700|
|College returns 70% of unearned institutional charges||$280|
|John returns unearned portion not returned by college||$420
50% due to grant
|John returns to U.S. Department of Education||$210|
MCC will return unearned Title IV aid in the following order:
MCC's responsibilities in regard to the return of Title IV funds include:
The Student's responsibilities in regard to the return of Title IV funds include:
Any student debt owed to MCC will preclude the student from future registration until debt is satisfied.
These policies and procedures supersede those previously published and are subject to change according to U.S. Department of Education regulations and MCC policy revision.