Students who officially or unofficially break enrollment (withdraw, fail to return from an approved leave of absence or are dismissed from enrollment at MTSA) and are recipients of Title IV (federal) aid, may owe a repayment of federal aid back to the Department of Education. Students should be aware that eligibility for future federal aid may be jeopardized by withdrawing from MTSA after federal funds have been disbursed.
If a student ceases attendance from all his or her courses within a period of enrollment, the student will be considered a withdrawal for Title IV purposes. Students who elect to withdraw from courses must follow MTSA’s official withdrawal process. The withdrawal date will be the date the student begins the withdrawal process or the last day of their attendance at MTSA. The amount of federal aid a student earned, in their payment period, is determined on a pro rata basis (for example: if student completes 30% of their payment period, they earn 30% of the assistance they were originally scheduled to receive). Students who withdraw prior to completing 60% of the payment period will have their financial aid prorated and unearned funds returned. After the 60% point, the student is deemed to have earned 100% of the Title IV funds. Federal Title IV funds will be returned based on the percentage of period completed.
Federal regulations stipulate how the return of Title IV Funds is calculated for students who have received federal assistance. If the student did not attend 60% of the payment period, any excess federal aid must be returned to the appropriate program in the following order:
- Federal Unsubsidized Federal Direct Loan
- Federal Graduate PLUS Loan