Withdrawing and Return of Title IV Funds
Withdrawing and Return of Title IV funds
If circumstances require you to consider withdrawing from classes, you should contact the Office of Financial Assistance and your academic advisor before withdrawing, to make sure you understand the financial and academic consequences of your decision. The Office of Financial Assistance advisors will explain the policies described on this page and how they will apply to your situation.
Tuition Refund Policy
Northern has a tuition refund policy that stipulates the amount of tuition and fees that are refunded to a student who withdraws from all classes during a term. The Registrar’s Office determines specific refund dates each term and publishes them on the Academic Calendar (once on this site, choose the appropriate academic term). You can also find detailed refund policy information in the 2012-2014 catalog on page 44.
Return of Title IV Funds
The federal government mandates that students who withdraw from all their classes may only keep the federal financial aid (i.e., Title IV funds) they have “earned” up to the time of withdrawal. Title IV funds that have been disbursed in excess of the earned amount must be returned by the college and/or the student to the federal government. Thus, you could owe aid funds to the college, the federal government, or both if you withdraw from or receive failing grades in all of your courses. The amount of aid which you might be subject to repay is determined by regulations as set in Section 484B of the Higher Education Act, which also specifies the order of return of the Title IV Funds to the programs from which they were awarded.
Calculating Earned Financial Aid
The amount of earned financial aid is calculated on a daily basis beginning the first day of classes. The process uses calendar days rather than business days. Earned aid is determined by taking the number of days attended before withdrawing divided by the total number of days in the term (first day of instruction until the last day of finals excluding breaks of five or more days of no academic activity).
For students who withdraw from classes after the 60% point-in-time, there are no unearned funds. However, NNMC must still complete a return calculation in order to determine whether the student is eligible for a post-withdrawal disbursement.
Determination of Withdrawal Date
The withdrawal date used in the return calculation of a student’s federal financial aid is the actual date indicated on the official “withdrawal from last class” form. If a student stops attending classes without notifying NNMC, (unofficial withdrawal) the withdrawal date will be the midpoint of the semester or the last date of academic activity determined by NNMC. Additional documentation supporting the last date of academic activity may be provided by the student if they verify a later date of attendance than determined by NNMC.
For students who withdraw from classes prior to census date (15 days from beginning of term) NNMC must still complete a return calculation in order to determine whether the student is eligible for a post-withdrawal disbursement.
Example of a Refund of Tuition
|Step 1||Federal Aid Awarded|
|Federal Pell Grant||$2,775|
|Step 2||Percentage of Title IV federal aid earned August 22nd to September 26th
(date of withdrawal) =36 days/117 days in term = 30.8% of the term.
|Step 3||Total amount of Title IV earned $3,375 x 308 = $1,039.50||$1,039.50|
|Step 4||Total amount of Title IV to be returned $3,375—$1,039.50 = $2,335.50||$2,335.50|
|Step 5||Amount of unearned Title IV to be returned by the College Note: Must use total
institutional tuition and fee charges $1,914.31 - x 692 (100%-30.8% = 69.2%
|Step 6||Charged back to students account (student owes)||$1,325|
The amount of $1,325 must be paid in full to Northern New Mexico College before the student can register for future courses. The amount cannot be charged to future financial aid disbursements.
Any refund or repayment obligation will be clearly outlined for the student in writing. If it is determined that the student owes a repayment to the US Department of Education the student will have 45 days to enter into a repayment with NNMC or the student will be referred to the US Department of Education.
The Order the funds must be returned to Title IV programs is as follows:
1. Federal Unsubsidized Direct Loan
2. Federal Subsidized Direct Loan
3. Federal Perkins Loan
4. Federal Direct PLUS (Parent) Loan or Grad PLUS Loan
5. Federal Pell Grant
6. Federal Supplemental Educational Opportunity Grant (FSEOG)
7. Other Federal and State Programs
last updated on 10/18/2013