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Financial Aid

Return to Title IV Policy

Students receiving federal financial aid who completely withdraw within the first 60% in a payment period are subject to the federal return provisions.

Mt. SAC will use a formula to determine the amount of SFA funds a student has earned as of his/her last day of attendance. During the first 60% of the payment period, the student “earns” Title IV aid in proportion to the length of time he/she remains enrolled. The percentage of SFA funds earned will equal the percentage of the calendar days completed in the payment period prior to the withdrawal date or the last day of attendance. After the student has completed 60% of the payment period, he/she has earned 100% of the SFA funds disbursed.

  • Percentage Earned – The percentage of SFA funds earned is equal to the percentage of the payment period completed as of the last day of attendance.

  • Percentage Unearned – The total SFA funds disbursed, minus the amount of SFA funds earned determine the amount of SFA loan and grant aid that is unearned and must be returned.

Funds Returned

The school and/or the student may be required to return a portion of the federal funds disbursed to the student.

Mt. SAC will return the amount of SFA funds that the student does not earn. Funds will be returned to the SFA programs in the following order: Unsubsidized Federal Direct / Stafford Loans and Subsidized Federal Direct / Stafford Loans, Federal Perkins Loans. If funds remain after repaying loan amounts, those remaining funds must be returned in the following order: Federal Pell Grant, Supplemental Educational Opportunity Grant (FSEOG) and Academic Competitiveness Grant (ACG). ACG program will terminate at the end of 2010-11 aid year.

The student must repay loan funds in accordance with the terms of the loan and any grant funds as an overpayment.

Withdrawal Date Policy

Official and unofficial withdrawal dates will be determined using the federal regulation definition for a withdrawal date. The official date will be determined by the earlier of one of the following:

  1. Date the student begins the withdrawal process;

  2. Date the student provides official notification of intent to withdraw;

  3. Students who fail to officially withdraw are assumed to have completed at least 50% of the term unless an earlier or later date is determined by the school.

 

RETURN OF FUNDS must be made directly to the Fiscal Service Department

Students who do not make satisfactory arrangements for payments in a timely manner will have their debts submitted to the U.S. Department of Education for collection.

 

Revised: June 2011