Federal Aid Refund
Federal law specifies how the Mount must determine the amount of Title IV program assistance that you earn if you withdraw from school. We are also required to use this same refund calculation if you fail to earn any credit hours in a semester in which you received federal student aid. We can only assume in those situations that you attended class up to the 50% point in the semester unless you can document otherwise. The Title IV programs that are covered by this law are: Federal Pell Grants, Iraq and Afghanistan Service Grants, TEACH Grants, Direct Loans, Direct PLUS Loans, Federal Supplemental Educational Opportunity Grants (FSEOGs), and Federal Perkins Loans.
Though your aid is posted to your account at the start of each period, you earn the funds as you complete the period. If you withdraw during the semester, the amount of Title IV program assistance that you have earned up to that point is determined by a specific formula. If you received (or the Mount or your parent received on your behalf) less assistance than the amount that you earned, you may be able to receive those additional funds. If you received more assistance than you earned, the excess funds must be returned by the school and/or you.
The amount of assistance that you have earned is determined on a pro rata basis. For example, if you completed 30% of the semester, you earn 30% of the assistance you were originally scheduled to receive. Once you have completed more than 60% of the semester, you earn all the assistance that you were scheduled to receive for that period. If you did not receive all of the funds that you earned, you may be due a post-withdrawal disbursement. If your post-withdrawal disbursement includes loan funds, the Mount must get your permission before it can disburse them. You may choose to decline some or all of the loan funds so that you don’t incur additional debt. The Mount may automatically use all or a portion of your post-withdrawal disbursement of grant funds for tuition, fees, and room and board charges (as contracted with the school). The Mount needs your permission to use the post-withdrawal grant disbursement for all other school charges. If you do not give your permission, you will be offered the funds. However, it may be in your best interest to allow the school to keep the funds to reduce your debt at the school.
There are some Title IV funds that you were scheduled to receive that cannot be disbursed to you once you withdraw because of other eligibility requirements. For example, if you are a first-time, first-year undergraduate student and you have not completed the first 30 days of your program before you withdraw, you will not receive any Direct Loan funds that you would have received had you remained enrolled past the 30th day.
If you receive (or the Mount or your parent received on your behalf) excess Title IV program funds that must be returned, the Mount must return a portion of the excess equal to the lesser of:
1. your institutional charges multiplied by the unearned percentage of your funds, or
2. the entire amount of excess funds.
The Mount must return this amount even if it didn’t keep this amount of your Title IV program funds. If the Mount is not required to return all of the excess funds, you must return the remaining amount.
Any loan funds that you must return, you (or your parent for a Direct PLUS Loan) repay in accordance with the terms of the promissory note. That is, you make scheduled payments to the holder of the loan over a period of time.
Any amount of unearned grant funds that you must return is called an overpayment. The maximum amount of a grant overpayment that you must repay is half of the grant funds you received or were scheduled to receive. You do not have to repay a grant overpayment if the original amount of the overpayment is $50 or less. You must make arrangements with the Mount or the Department of Education to return the unearned grant funds.
The requirements for Title IV program funds when you withdraw are separate from the tuition reduction schedule of the Mount. Therefore, you may still owe funds to the school to cover unpaid institutional charges. The Mount will also charge you for any Title IV program funds that we are required to return. The Mount’s tuition reduction schedule can be found by clicking here. The requirements and procedures for officially withdrawing from school can be reviewed on our registration page. Withdrawing also affects your ability to make Satisfactory Academic Progress. You can review that policy at http://www.msj.edu/tuition-aid/policies-rules-regulations/satisfactory-academic-progress/.
If you have questions about your Title IV program funds, you can call the Federal Student Aid Information Center at 1-800-4-FEDAID (1-800-433-3243). TTY users may call 1-800-730-8913. Information is also available on Student Aid on the Web at www.studentaid.ed.gov.
Complete Withdrawal from the Mount
Through the 60% point in each semester, a pro rata schedule is used to determine how much federal student aid you have earned at the time of withdrawal. After the 60% point, you have earned all of the federal aid funds for that term.
If the day the student withdraws occurs on or before the student completed 60% of the term, the percentage of federal funds earned is equal to the percentage of the term that has been completed. The percentage of the term completed is determined by the number of calendar days completed at the time of withdrawal divided by the total number of days in the term.
The withdrawal date used is either:
1. the date that the student began the withdrawal process
2. the date that the student otherwise provided official notification to the school of the intent to withdraw;
3. the midpoint of the payment period for which federal assistance was disbursed or a later date documented by the school; or
4. in special circumstances, a date determined by the school.
Unearned funds are returned to the federal aid programs in the following order:
1. Unsubsidized Direct Stafford Loan
2. Subsidized Direct Stafford Loan
3. Federal Perkins Loan
4. Federal Direct Graduate PLUS Loan
5. Federal Direct Parent PLUS Loan
6. Federal Pell Grant
7. Academic Competitiveness Grant
8. Federal SMART Grant
9. Federal Supplemental Education Opportunity Grant
10. Federal TEACH Grant
11. Iraq & Afghanistan Service Grant