Return of Title IV Funds Policy
Students attending Mitchell Technical Institute who withdraw or who have been administratively withdrawn from all classes before 60% of a semester or term has elapsed are required to have a portion of their institutional costs returned to the federal financial aid program that provided the funds.
Financial aid disbursed is earned according to what percentage of a semester the student has attended. The student’s last date of attendance is the critical factor in determining what portion of aid must be returned.
If the amount of the Institute’s refund does not satisfy the portion of funds that must be returned, it becomes the student’s responsibility to satisfy the remaining amount. Therefore, students receiving Federal Pell Grants and Federal Supplemental Grants may have to return a portion of these funds if that amount exceeds institutional charges. An example of how the policy works is listed below.
Each semester at MTI is about 120 days long. If a student drops out after attending 12 days of classes, their refund is calculated as follows:
| Number of Days in the Semester |
120 |
(100%) |
| Number of Days Student Attends |
12 |
(10%) |
| Student’s Total Institutional Cost |
$1,500 |
|
| MTI Retains |
$150 |
(10%) |
| MTI Returns to Federal Program |
$1,350 |
(90%) |
| Student Federal Aid Originally Received |
| |
Federal Pell Grant |
$1,650 |
|
| |
Federal Supplemental Grant |
$225 |
|
|
Total Aid |
$1,875 |
|
| |
| Student Federal Aid Returned |
|
Total Aid |
$1,875 |
|
|
Minus Pell Returned |
$165 |
(10%) |
|
|
$1,710 |
|
| MTI Returns to Federal Program |
$1,350 |
|
|
|
$360 |
|
| |
Student Must Return 50% |
$180 |
(50%) |
| |
Student Owes MTI |
$180 |
|
Students who fail to return any balance due to Federal Grant Program(s) will owe an overpayment to a Title IV Federal Financial Aid Program and will be ineligible for any additional Title IV financial aid. Students who owe a refund to a Federal Loan Program may repay that amount under the terms and conditions of the loan and its promissory note. (Payments are not due until the grace period has ended.)
Federal funds are returned to programs in the following order:
- Unsubsidized Federal Stafford Loan
- Subsidized Federal Stafford Loan
- Federal Perkins Loan
- Federal Parent PLUS Loan
- Federal Pell Grant
- Federal Supplemental Grant (SEOG)
MTI’s policy on the repayment of Federal Grant funds requires that these funds must be returned within 45 days after the funds are requested from the student unless other satisfactory repayment arrangements are made.