Refund Policy
Refund Policy for financial aid recipients who withdraw from all classes
Students who find it necessary to completely withdraw from the college and are receiving federal financial aid should be aware of how they will be affected. A complete withdrawal is defined as dropping all classes and having no credits earned for the semester. A student receiving federal financial aid who officially withdraws from all classes up to the 60% point in the term, may be entitled to a refund. A student's withdrawal date will be determined from the earlier of (1)completing and turning in a withdrawal form to the Registrar's office and/or (2) notification by phone to the Registrar. The student will earn aid based on the number of calendar days attended which is calculated from the beginning of the semester until the official withdrawal occurs (any breaks of 5 days or more will be taken out of the calculation).
Once the percentage of aid earned is calculated, any "unearned" financial aid will be returned to the US Department of Education. If a student's charges exceed the earned portion of financial aid, a refund of the unearned percentage will be applied to institutional charges (except books) to match the "unearned" financial aid. Books must be returned to the college for charges to be lowered in the same manner as the other institutional charges. If books are not returned to the college at the time of withdrawal, students will be assessed the "unearned" portion and required to pay the remainder.
Students who have received a portion of their financial aid for living expenses, travel, etc., may be required to repay unearned funds to the federal government. Any student that owes a grant overpayment must make satisfactory payment arrangements with the Business Office to avoid being turned over to the US Department of Education.
Example
Sally Student officially withdraws from all of her classes on Day 40 of a 100 day semester; Sally has earned 40% of her financial aid. Her tuition and fee charges and financial aid are:
Costs: Tuition & Fees $800, Books $200, Total = $1,000
Student Aid: Pell Grant $1,500, Stafford Loan $1,000, Total $2,500
Student Refund: Pell Grant $500, Stafford Loan $1,000, Total $1,500
Based on the 40% that Sally has earned, we are able to keep $400 of her financial aid (40% of $1000) and must return $600. We will then lower all of her charges by that same percentage except for her books. Sally will have to either pay for the unearned portion of her books or turn them back in to the college to receive the credit.
Institutions are required to return SFA funds on behalf of recipients in the following order:
- Unsubsidized Federal Stafford Loans
- Subsidized Federal Stafford Loans
- Federal PLUS Loans
- Federal Pell Grant
- Federal SEOG
- Other Title IV Assistance
Sally also received a refund of her Pell Grant and Stafford Loan. Of the $1,500 she received, 60% was unearned so $900 has to be repaid by her.
Students must return funds in the following order:
- Unsubsidized Federal Stafford Loans*
- Subsidized Federal Stafford Loans*
- Federal PLUS Loans*
- Federal Pell Grant x 50%
- Federal SEOG x 50%
- Other Title IV Assistance
If a student owes a repayment of grants to the US Department of Education, they will remain ineligible for federal aid until they resolve their repayment. Students will have an opportunity to resolve the overpayment by contacting the MCC Business Office within 30 days of receiving notice and making payment arrangements.
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