Cabell-Huntington Health Department stay at Home Advisory – READ UPDATE

Return of Title IV Funds

What are Title IV FUNDS?

  • Unsubsidized Federal Direct Stafford Loans
  • Subsidized Federal Direct Stafford Loans
  • Federal Perkins Loans
  • Federal Direct Parent (PLUS) Loans
  • Federal Pell Grants or IASG
  • Federal Supplemental Opportunity

The Financial Aid Office is required by the Higher Education Act of 1965, as amended in 1998, to determine the amount of financial aid that a student “earned”; for an academic semester. If a student does not complete at least one course within the semester then a calculation is required. The calculation is as follows: percentage of the term completed = the number of days completed up to the withdrawal date divided by the total number of days in the term. This percentage is also the percentage of earned aid. When the “earned”; aid is less than the disbursed aid, the institution and student are responsible for returning the “unearned”; disbursed funds to the appropriate agency.

Who Needs to Know?

  • Any student who does not complete at least one course within an academic semester for which financial aid is received, or could have been received, will be reviewed for a Return of Title IV Funds calculation. This includes students who drop, officially or unofficially withdraw, or are dismissed.
  • The U.S. Department of Education (ED) also requires MCTC to perform a Return of Title IV Funds calculation for any student enrolled in multiple parts of a term who ceases attendance during the first part of the term, unless the student provides written confirmation of future attendance for the second part of the term courses.

What You Need to Know About the Return of Title IV Funds

  • The Return of Title IV Funds is based on the premise that students “earn”; financial aid for each calendar day that they attend classes. For example, if a student attends 32 days of a semester that is 80 calendar days in length, the student will have “earned”; 40 percent of his or her aid.
  • Students who complete more than 60 percent of the semester are considered to have earned 100 percent of their financial aid.
  • The Return of Title IV Funds policy is separate from the college’s refund policy. A student who withdraws from the semester may be required to return unearned Title IV financial aid funds and may still owe Mountwest for institutional charges. Refund Policy
  • Return of Title IV Funds does not apply to Federal Work Study, but, does apply to State Funds to include WV Higher Education Grants, Promise, WV Invests, and HEAPS. Please contact the Financial Aid Office for more information on the consequences of dropping classes if you receive these types of financial aid.
  • If a student is required to return Title IV funds as a result of his or her drop, withdrawal, or dismissal, or is eligible for a late disbursement, the student will receive a letter from the Financial Aid Office along with a copy of the Return of Title IV Funds Calculation. The student should follow the instructions in the letter carefully to repay any funds due or to accept a late disbursement.
  • Students who drop or withdraw from one or more of their classes may fail to maintain Satisfactory Academic Progress which may result in ineligibility for financial aid in the future. Please contact the FINANCIAL AID OFFICE and speak to a financial aid counselor before dropping a course.
  • All non-passing grades will be reviewed to determine if the student completed the course or ceased attendance prior to the end of the course. If the course was not completed, the student will be considered unofficially withdrawn and the last date of participation in the class, or last date of attendance as reported by faculty, will be used to calculate “earned” financial aid. If the last date of participation/enrollment is not known, the midpoint of the term will be used to calculate “earned” aid.
  • Any student who owes a balance after “unearned” financial aid is returned will have a hold placed on his or her account, which will prevent the student from registering for classes.
  • Students whose financial aid was not disbursed prior to ceasing attendance may be eligible to receive a percentage of their financial aid after they have withdrawn. In order to be eligible for these funds, the student must have completed all requirements and been eligible for the disbursement prior to ceasing attendance.

Mountwest must return the amount of Title IV funds for which it is responsible no later than 45 days after the date of the determination of the date of the student’s withdrawal. Return of funds are allocated in the following order:

  • Unsubsidized Federal Direct Stafford Loans
  • Subsidized Federal Direct Stafford Loans
  • Federal Perkins Loans
  • Federal Direct Parent (PLUS) Loans
  • Federal Pell Grants
  • Federal Supplemental Opportunity Grants

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