If a student withdraws from one or more courses, either officially or unofficially,
there may be a financial aid impact in that they may owe back funds. Here's how it
If you receive a grant and you withdraw from one or more of your classes, you will owe back money for the reduction in enrollment status, if one occurs. A reduction in enrollment status would be, for example, dropping from full-time to three-quarter time.
Example: If you were enrolled in 12 units (full-time) and received a grant of $3,173, then you withdraw from 6 units (half-time), you would owe $1,587.00 back for the reduction in enrollment status.
Return to Title IV Funds
Students who completely withdraw from MSJC prior to completing the term may be required to repay all or a portion of any Title IV aid received. The amount that must be returned is calculated based on the percentage of the term that was completed prior to the student withdrawing from all classes (instructors may drop a student for non-participation).
A complete withdraw can be categorized as an official withdrawal or an unofficial withdrawal:
- Official Withdrawal: If you completely withdrawal (stop attending) all of your registered classes after the semester as started
- Unofficial Withdrawal: If you do not successfully complete the semester with at least one passing grade. It is your responsibility to drop your classes, if you stop attending
According to the day you completely withdraw from all your classes, the Financial Aid Office will determine the part of the grant that you have "earned". Your enrollment status on this day will determine the amount you have "earned".
Example: Say you receive a grant of $2,114.00. If there are 122 days in the term and you drop out on the 31st day then, you earned 25% of your grant. The Financial Aid Office will calculate what portion of your grant you earned and did not earn. $2,114.00 grant x 25% = $528.50 (earned) and; $2,114.00 grant x 75% = $1,585.50 (unearned).
The college will pay back some of the unearned portion of the withdrawal on your behalf depending on the enrollment fees you were charged (including tuition, transportation fees, health fee, and any other mandatory enrollment fees, if applicable). You will, however, owe these funds back to the college. If you enrolled in 12 units at $46/unit, plus $6 transportation fee, and $20 health fee and any other mandatory fees = $578 x 75% (unearned) = $433.50 (college share).
You will also have to pay back the unearned amount of the grant to the Federal program(s), minus the college share, times 50%. $1,585.50 (unearned) - $433.50 (college share) = $1,152.00 you must pay the Federal program(s). However, 50% of the amount of aid you could have been paid is protected, so you may only owe the college the portion paid back on your behalf.
Don't worry if you don't understand, the Financial Aid Office will calculate the amount for you.
If you received less of the award than you were eligible for, or that you "earned", you will receive a "post-withdrawal" disbursement.
If you received Federal Work Study money and withdraw, you do not owe your earnings back. You always get to keep the salary you have earned.
Department of Education - Defaulted Resolution Group Contact Information
If you would like to contact the Department of Education-Default Resolution Group after MSJC has reported your debt to collections, please allow 15 business days. You may contact the U.S. Department of Education:
- By phone - 1-800-621-3115
- By mail - U.S. Department of Education, Defaulted Resolution Group, P.O. Box 5609, Greenville, Texas 75403-5609
- Online - https://studentaid.gov/ or https://myeddebt.ed.gov/borrower/
Note: Remember, your withdrawal will also affect a separate policy called Satisfactory Academic Progress. Even after you repay the amount you owe due to your withdrawal and the "Return of Title IV Funds", under the policy stated above, you will still be responsible for meeting the terms of Satisfactory Academic Progress in order to receive aid at MSJC the following semester. Please refer to the Satisfactory Academic Progress Policy Statement or call the Financial Aid Office for more information.