PENALTIES / REPAYMENT

 

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:

1. Federal Pell Grant
2. Federal Supplemental Education Opportunity Grant (SEOG)
3. Other Title IV aid

MCC's responsibilities in regard to the return of Title IV funds include:

• Provide students with the Return of Title IV Funds Policy
• Notify students of unearned aid to be returned to Title IV programs (including student and college portions to be returned). Notifications will be sent to the student's home address on file in Student Services
• College portion of unearned aid will be returned by the college within 30 days to Title IV programs and student will be billed for repayment
• College will notify the U.S. Department of Education of student's portion of unearned aid to be returned within 30 days of becoming aware of the student's complete withdrawal

The Student's responsibilities in regard to the return of Title IV funds include:

• Becoming familiar with the Return of Title IV Funds policy
• Returning to the U.S. Department of Education all unearned aid as determined by the Return of Title IV Funds calculation
• Contacting the college if unable to return unearned portion within 45 days of notification. The college will then contact NSLDS and Ed Collections to notify of student's situation. 10 days after the college has contacted NSLDS and Ed Collections, the student may contact Ed Collections to arrange a repayment plan of the student portion of unearned aid satisfactory to the U.S. Department of Education by calling 1-800-621-3115
• Repay MCC any unearned aid portion of Title IV funds returned by the College to the U.S. Department of Education

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.