Withdrawal from Classes
Return to Title IV Policy for Financial Aid
Even though financial aid is paid to a student’s account at the start of each semester, the student earns the financial aid as the student completes the payment period. If a student withdraws during his or her period of enrollment, the amount of Title IV financial aid the student has earned up to that point is determined by a specific formula. The following explains the treatment of Title IV financial aid when a student’s withdraws from classes.
MCCC Institutional Refund Policy
Students who withdraw from all classes during the term, depending upon when the withdrawal occurs, may be refunded all or a portion of their tuition and fee charges. Monroe County Community College (MCCC) publishes the dates for the 100% tuition refund period and 50% tuition refund period for each semester of the academic year on the MCCC website:
Additionally, Policy 3.05 (Tuition and Fees Policy) provides students with a detailed explanation of the standardized policy established by the College for refunds of tuition and fees. All MCCC policies and procedures are available on the MCCC website:
Please note that MCCC’s institutional refund policy is a separate from the regulations that the Financial Aid Office must abide by when determining the amount of Title IV financial aid a student has earned. Students receiving financial aid are strongly advised to consult with the Financial Aid Office prior to dropping classes.
Treatment of Title IV Aid When a Student Withdraws
MCCC’s tuition and fee refund policy is separate from the process MCCC’s Financial Aid Office must follow for determining a student’s financial aid eligibility when a student “officially” or “unofficially” withdraws from classes. The law specifies how MCCC must treat the amount of Title IV program assistance that you earn if you withdraw from school. When a student withdraws from classes, if the student is a financial aid recipient, Monroe County Community College, as well as the student, may be required to return to the federal government all or a portion of the financial aid that had been disbursed and/or applied to the student’s account.
An “official” withdrawal is when a student formally drops all classes for a given term. This is generally done by the student using WebPal or submitting a signed withdrawal form to the Registrar’s Office. An “unofficial” withdrawal is when a student is enrolled in at least one class, for a given term, which he/she does not formally drop (as indicated in the previous two sentences) and the student does not successfully complete any of the classes in which he/she is enrolled for that term with a grade of “A, B, C, D, or H”. When a student unofficially withdraws from classes, the Financial Aid Office will follow-up with the student’s instructor for each class to determine the last date in which the student participated in each class.
Return to Title IV (Federal) Policy
If the student withdraws from school, “officially” or “unofficially,” before the term is completed and the student was the recipient of Title IV financial aid funding, Federal Return to Title IV Regulations require the Financial Aid Office to calculate both the amount of earned and unearned aid for the period of withdrawal. If the student received more assistance than he/she “earned” by only attending a portion of the term, the excess funds must be returned by the College and/or the student to the federal government.
The federal formula requires a return of Title IV financial aid if the student received Federal financial aid assistance in the form of a Pell Grant, Iraq and Afghanistan Grant, Supplemental Educational Opportunity Grant, Stafford Direct Loans or Parent Loan for Undergraduate Students, and the student withdrew before completing more than 60% of the enrollment period. To determine the amount of aid the student has earned up to the time of withdrawal, divide the number of calendar days the student attended classes by the number of calendar days in the enrollment period. Scheduled breaks of 5 days or more are excluded. The percentage derived is then multiplied by the total federal funds that were disbursed (applied to the student’s account and/or refunded) or that could have been disbursed for the enrollment period. This calculation determines the amount of aid earned by the student which he/she may keep. The unearned amount (total aid disbursed or that could have been disbursed less the earned amount) must be returned to the federal government by the MCCC or the student. The unearned aid must be returned in the following order:
Unsubsidized Stafford Direct Loan
Subsidized Stafford Direct Loan
Parent Loan for Undergraduate Students
Supplemental Educational Opportunity Grant
Iraq and Afghanistan Grant
Other Federal assistance
If a student did not initially receive all of the funds he or she earned, the student may be due a post-withdrawal disbursement. If the student’s post-withdrawal disbursement includes loan funds, the school must get the student’s permission before the funds can be disbursed. The student may choose to decline some or all of the loan funds so that the student doesn’t incur additional debt. MCCC may automatically use all or a portion of the student’s post-withdrawal disbursement of grant funds to pay outstanding tuition and fees charges. MCCC needs the student’s permission to use the post-withdrawal grant disbursement for any other charges.
Additionally, there are some Title IV funds that a student may have been scheduled to receive that cannot be disbursed once the student withdraws, due to other eligibility requirements. For example, if a student is a first-time, first-year undergraduate student and has not completed the first 30 days of the program before withdrawing, the student is not eligible to receive any Direct Loan funds at that point.
Once a determination of earned and unearned Title IV financial aid funding has been made, the Financial Aid Office will notify withdrawn students of their eligibility.
- Michigan Competitive Scholarship funds which must be returned when a student withdraws from all classes are calculated based on a separate return formula provided by the Michigan Office of Scholarships and Grants.
- Loan funds disbursed in excess of eligibility are repayable/due based on the terms and conditions outlined in the promissory note. Most Direct Loan borrowers will enter repayment 6 months after withdrawal, unless they re-enroll on a half-time basis before the end of the 6-month grace period.
If for some reason outside of the student’s control, the student is unable to remain enrolled and in attendance, the student should seek the advice of the Financial Aid Office BEFORE withdrawing or stopping attendance in class to find out how this will affect his/her financial aid package.
In accordance with R2T4 regulations, MCCC processes the R2T4 calculations within 30 days of the student’s last date of attendance for students who officially withdraw, and within 30 days of identifying students who unofficially withdraw from the payment period. MCCC is required to return the unearned portion of the student’s Title IV aid to the Federal government within 45 days of identifying that the student officially or unofficially withdrew from MCCC.
Effective July 1, 2011, Federal regulations governing the Return to Title IV (Federal) Aid Policy have changed with regard to students who enrolled in “modular” classes (e.g. – classes meeting less than 16-weeks in length at MCCC) during a specific award period (e.g. – Fall, Winter, or Spring/Summer). At MCCC, this includes 12-week classes and 8-week classes during Fall and Winter semesters, all Spring and Summer semester classes, and any other class meeting less than 16-weeks in duration.
Based on these new regulations, when a student is enrolled only in modular classes, a Return to Title IV Aid calculation must be performed whenever a student withdraws (officially or unofficially) from all classes which are meeting at that time, regardless of whether or not the student has already passed/completed a class in an earlier module within the award period or if they are enrolled in a class which has not yet begun within the award period. Such a calculation can only be avoided if the student is enrolled in a class which has not yet begun within the award period and the student provides written notification to the Financial Aid Office of their intention to remain enrolled in that class and to attend that class.
During the Fall 2015 semester, a student is enrolled in one first 8-week class and one second 8-week class, but is not enrolled in any other classes. If the student drops the first 8-week class during the third week of the award period, a Return to Title IV Aid calculation must be performed within 30 days, even though the student is registered for a second 8-week class, beginning in the ninth week of the award period. This calculation can only be avoided if the student provides written notification to the Financial Aid Office of their intention to remain enrolled in the second 8-week class and to attend that class.
During the Fall 2015 semester, a student is enrolled in one first 8-week class and one second 8-week class, but is not enrolled in any other classes. If the student passes/completes the first 8-week class and earns a grade of “A” and then the student drops the second 8-week class after its scheduled start date (at the beginning of the ninth week of the award period), a Return to Title IV Aid calculation must be performed within 30 days, even though the student passed/completed the first 8-week class.
Students who receive financial aid should always contact the Financial Aid Office prior to withdrawing from classes.