Return of Title IV Funds

Return of Title IV Funds

The Higher Education Amendments of 1998, Public Law 105-244 require colleges to calculate the Return of Title IV Funds Policy when a recipient of Title IV aid completely withdraws from the college through the 75 percent point during a payment period. The institution must calculate the amount(s) of Title IV aid the student earned and return the unearned portion(s) of the Title IV fund(s) to the Title IV program(s). The institution and student will be required to return unearned Title IV funds to the Title IV programs.

Effective fall 2018, Mitchell Community College is an institution that does not require taking attendance. Students officially begin the institution’s withdrawal process when they notify the Advising Office. Students are given an official withdrawal form to complete, sign and date. This date will be the student’s withdrawal date. Students, who provide official notification orally, will be required to confirm their notification in writing by completing the official withdrawal form. The date the student notified the college will be the student’s withdrawal date. When official notification is not provided by the student, the midpoint or the last date of academically related event, in which the student participated will be the student’s withdrawal date. 

Students who stop attending class or leaves Mitchell Community College without following the official withdrawal procedures is subject to receiving a grade of “F” for each course in question. When a student receives all “F’s”, he or she may be defined as ‘unofficially withdrawn’ for Title IV purposes. At the end of each semester, if a last date of attendance cannot be determined, the student is assumed to have attended 50% of the enrollment period and the Return of Title IV calculation is based on this length of attendance. 

Under the October 29, 2010, final regulations, effective July 1, 2011, for all programs offered in modules, a student is a withdrawal for Title IV purposes if the student ceases attendance at any point prior to completing the payment period or period of enrollment, unless the school obtains written confirmation from the student at the time of the withdrawal that he or she will attend a module that begins later in the same payment period or period of enrollment.

The Financial Aid Office must determine if the student was a recipient of Title IV funds who withdrew prior to the 75 percent point and perform the Return of Title IV Funds calculation. Under this policy, the school must determine the amount of Title IV funds a student has earned and return the unearned portion. The Financial Aid Office is required to send written notification to the student informing the student of the amount owed. This notification must be sent to the student, no later than thirty calendar days after the date the Financial Aid Office is notified the student withdrew. 

If the Return of Title IV Funds calculation is performed and it determines that the student received less Title IV funds than the amount earned, the institution must make a post-withdrawal disbursement to the student of the earned aid that was not received. In order to make a postwithdrawal disbursement for incurred educational costs, the school must have received the student’s valid Institutional Student Information Record (ISIR) with an official Expected Family Contribution (EFC). Students must also have submitted all documentation requested to the Financial Aid Office. To be eligible for a post-withdrawal disbursement, the student must meet all Federal Guidelines outlined by the Department of Education.