Student Withdrawal and Return of Title IV Policy

Student Withdrawal and Return of Title IV Policy

For students who withdraw from all classes, either officially or unofficially, Federal regulations require Mayland Community College to determine the amount of Title IV funding (Pell, Federal Supplemental Opportunity Grants, or Iraq and Afghanistan Service Grants) that has been earned prior to withdrawal from school.

Even though your total financial aid award is posted to your student account at the beginning of the semester, Federal regulations assume that students earn financial aid over the course of a term by attending and participating in classes. Students cannot earn all of the funds unless they maintain attendance and class participation for more than 60% of the term. Therefore, if you withdraw from all classes during a semester before the 60% point of the term, the unearned amount of funding received must be returned by Mayland and/or by you.

For example, a student who withdraws from school at the midpoint or 50% point in a semester would only have earned 50% of the Title IV funds he/she received. However, if that same student withdraws from school on or after the 60% point of a semester, he/she is considered to have earned 100% of the Title IV funds received and nothing is left unearned.

When students drop prior to the 60% point of a semester, Mayland is required to repay the lesser of:

  1. The institutional charges multiplied by the unearned percentage of aid received or
  2. The entire amount of excess funds

In the case of modules such as developmental math and reading, the above is applied to students who withdraw prior to the 60% point of their scheduled days to attend. For students in clock hour programs, the above is applied when students withdraw prior to having attended 60% of their scheduled clock hours.

When students withdraw under any of the circumstances mentioned above, Mayland requires them to pay the amount in which the school is required to return to a Title IV program.

Because Mayland’s institutional refund policy is separate from the Title IV return requirements, students could possibly owe the school institutional charges as well as Title IV program funds. In this instance, students may have a separate portion to return. This is referred to as an overpayment. If you are billed for an overpayment, you must make repayment arrangements with Mayland or the US Department of Education within 45 days.

As you can see, withdrawing or stopping attendance may result in financial debt and may also make you ineligible for future financial aid. We strongly urge you to consult with a financial aid staff member before making the decision to withdraw.