Title IV Student Withdrawal

For the Return of Title IV (R2T4) Funds Policy   CLICK HERE 

In general, the law specifies how schools must determine the amount of Title IV program assistance that is earned if a student withdraws from school. The Title IV programs that are covered by this law are: Federal Pell Grants, Stafford Loans, PLUS Loans, Federal Supplemental Educational Opportunity Grants (FSEOGs), Federal Perkins Loans and in some cases, certain state grant aid (LEAP/SLEAP), GEAR UP grants, and SSS grants to students. MTECH does not participate in the Federal Direct Loan programs.

The programs offered at Mountainland Technical College (MTECH) are classified as clock hour consisting of payment periods. When you withdraw during a payment period, 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 your school or parent received on your behalf) less assistance than the amount that you earned, you may be able to receive those additional funds. This is referred to as a “Post Withdrawal Disbursement” (PWD) which is a disbursement of Title IV aid that was earned, but not yet received prior to a student withdrawing from the program.  MTECH must disburse a PWD of federal financial aid funds within 180 days of the last date of the student’s attendance. A PWD will be automatically applied to current institutional charges.  It may also be applied to other current non-institutional charges (such as additional books and supplies purchased in the MTECH Bookstore) and any prior year balance which may exist on the student’s ledger account (up to a maximum of $200.00).  For all other school charges, the school needs your permission to use the post-withdrawal disbursement. 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. A notification of the receipt of an eligible post withdrawal disbursement is mailed out via regular U.S. Postal Service at the time the disbursement is posted to the student’s account.

Title IV funds are awarded to a student with the assumption that the student will attend school for the entire period for which the assistance is awarded. When a student ceases attendance prior to the planned ending date, the student may not be eligible for the full amount of Title IV funds the student was scheduled to receive. The Financial Aid Office determines the student’s last date of attendance, the number of clock hours a student was enrolled in as of the last date of attendance, and the number of clock hours expected to have been completed as of the last date of attendance. These data elements are used by the Financial Aid Office in completing the R2T4 worksheet. If you received more assistance than you earned, the excess funds must be returned by the school and/or you. This is referred to as a return of title four funds (R2T4) in which a withdrawal calculation is mandatory to determine the amount of unearned aid. An example of the R2T4 Calculation Form and Case study are available within the withdrawal tab on the college website. The amount of assistance that you have earned is determined on a pro rata basis.

For example, if you completed 30%, you earn 30% of the assistance you were originally scheduled to receive. Once you have completed more than 60% of the payment period, 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.

Treatment of Title IV credit balances when a student withdraws—this description applies only to the handling of Title IV credit balances when a student withdraws. A “Credit Balance” is that amount of money remaining after the student has paid educational charges for tuition, books, fees and any other supplies, if required for the program costs within the student’s enrollment plan. A Title IV credit balance occurs when a school credits Title IV program funds to a student’s account and those funds exceed allowable charges. A credit balance must be refunded to the student no later than 14 days after the credit occurs or 14 days from the first day of classes. MTECH offers students an option to retain the credit balance in a student’s account to cover estimated program costs, and any additional expenses that may incur prior to the end of the academic year to assist in managing educational funds. The college financial aid office provides essential financial aid information prior to the student beginning a program.

There are some Title IV programs that a student cannot earn funds 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 earn any loan funds that you would have received had you remained enrolled past the 30th day. MTECH does not participate in the Federal Direct Loan programs.

If you receive (or the school or parent receives on your behalf) excess Title IV program funds that must be returned, the school 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 school has 45 days to return any unearned Title IV funds for which it is responsible, and must return the required amount calculated even if it didn’t keep this amount of your Title IV program funds. The unearned Title IV aid is returned to federal programs in the following order:  Federal Direct Unsubsidized Loans, Federal Direct Subsidized Loans, Federal Perkins Loans, Federal Direct PLUS Loans, Federal Pell Grants, and Federal FSEOG (Federal Supplemental Educational Opportunity Grant). MTECH currently participates in the Federal Pell Grant and the FSEOG programs.

If the school is not required to return all of the excess funds, you must return the remaining amount. Any amount of unearned grant funds that you must return is called an overpayment. The amount of a grant overpayment that you must repay is half of the unearned amount. Students who owe funds to a grant program are required to make payment of those funds within 45 days of being notified that they owe this overpayment. During the 45 day period students will remain eligible for Title IV funds. If no positive action is taken by the student within 45 days of being notified, MTECH will notify the U.S. Department of Education of the student’s overpayment situation. The student will no longer be eligible for Title IV funds until they enter into a satisfactory repayment agreement with the U.S. Department of Education. Additional information is available in the college financial aid office, and online within the College Policies (Section 800, Financial Aid Policies).

The requirements for Title IV program funds when you withdraw are separate from any refund policy that the school may have. Therefore, you may still owe funds to the school to cover unpaid institutional charges. The school may also charge you for any Title IV program funds that the school was required to return.

A copy of the school’s refund policy can be located online within the College Policies (Section 600, Student Support Policies; Items 600.615 and 600.615A), and printed forms can be provided by the Student Services and Financial Aid Offices.  Policy: CLICK HERE

Procedure for Withdrawing from School

The requirements and procedures for officially withdrawing, or being considered to have unofficially withdrawn from school are:

A student is officially withdrawn when:

a. The student submits a “Course Withdrawal” form signed by the program/course instructor to the MTECH Student Services offices available on our college campus locations. Effective date of the withdrawal is the day the withdrawal form is submitted(date of determination) to Student Services;

b. The student is dismissed under disciplinary or academic performance policies; effective date of the withdrawal is the last day of attendance;

An unofficial withdrawal is when:

c. The student is absent from class for 10 consecutive days, effective date of the unofficial withdrawal is the first day of class if the student never attended, or the 10 th consecutive absence if the 10-day period began after the first day of class.