Return of Title IV Funds Policy
When a student receiving federal Title IV financial aid withdraws from Mitchell Tech or stops attending classes without formally withdrawing during the enrollment period, the amount of the Title IV funds (not including Federal Work Study) that the student earned during the enrollment period is calculated as of the student’s withdrawal date. The student withdrawal date is determined by the student’s last date of physical attendance or academic engagement as recorded by their instructors.
If the date a student withdraws from Mitchell Tech is prior to or on the 60th percent point of the semester, Mitchell Tech is required to determine the portion of the aid disbursed that was “earned” by the student before the 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 attendance in the enrollment period.
Once the date of withdrawal is determined, the amount of earned federal financial aid is calculated using the completion rate for the enrollment period, multiplied by the total aid that was disbursed or could have been disbursed (aid “could have been disbursed” if the student was eligible to receive it at the time he/she withdrew and may receive it under late disbursement rules in 668.164 [g]). Students who withdraw after completing 60 percent of the payment period will be considered to have earned 100 percent of their federal financial aid unless they are enrolled in modules (see next paragraph). A payment period is the period established by the school for which institutional charges are generally assessed, excluding breaks of five days or more. Federal financial aid that a student has earned can be applied toward institutional charges.
Modules
Federal regulations state that students who are enrolled in classes that do not span an entire term are considered to be enrolled in modules. If a student fails to complete all modules scheduled, the student is considered a withdrawal at the time the student ceases attendance, and the financial aid office is required to complete a return of Title IV calculation to determine how much federal financial aid funds were earned and return the amount that was considered unearned. The completion of 60 percent of term does not apply.
For students who fail to officially withdraw when they stop attending classes and are assigned an “F” grade for all courses for the semester, the Return to Title IV Funds policy requires Mitchell Tech to calculate the “earned” aid based on the student’s last date of attendance. Unearned federal aid must be returned as described above.
In accordance with federal regulations and Mitchell Tech policy, if you are eligible for a refund of tuition and fees, and you are a Title IV aid recipient for the enrollment period, the refund will be returned to the student aid programs. Returned Title IV Funds are allocated in the following order:
• Direct Unsubsidized Loans
• Direct Loans (subsidized)
• Federal Perkins Loans
• Direct PLUS Loans
• Federal Pell Grants
• Federal SEOG
Late or Post-Withdrawal Disbursement
Students may be eligible for a late or post-withdrawal disbursement if they have accepted aid that did not disburse at the time of withdrawal.
If eligible, the Mitchell Tech Financial Aid Office will send notification of the action required to either accept or decline a portion, or all, of the late disbursement. If no response is received within approximately two weeks of notification, the award will be canceled.
Mitchell Tech’s Responsibilities
Mitchell Tech’s responsibilities in regard to the Return of Title IV funds include:
• providing each student with the Return of Title IV funds policy
• identifying students who are affected by this policy and completing the Return of Title IV Funds calculation for those students
• returning any Title IV funds that are due to the Title IV programs within 45 days of notification of the withdrawal
Student Responsibilities
Students who received a credit balance refund of their Title IV aid will be responsible to repay any portion of that aid that is “unearned.”