Return to Title IV Refund Policy

Reviewed July 2017
Title IV aid is earned during the time a student is attending North Central Missouri College (NCMC). The percentage of Title IV aid earned is determined by dividing the number of days a student was enrolled by the number of days in the semester, up to the 60% point. Return of Title IV funds is no longer necessary after that point. If the student withdraws from all courses after the 60% point in the semester, Title IV aid is viewed as 100% earned. However, if a student
withdraws prior to that 60% point, the student may owe back part of his or her financial aid if it is determined that the student has received an amount larger than the earned amount. NCMC uses the online worksheet provided through CPS by the U.S. Department of Education to calculate the Return to Title IV (R2T4) Funds for each federal aid recipient who officially or unofficially withdraws from all classes.

Determining the Withdrawal Date

The calculation of the Return to Title IV Funds is determined by the date that the student withdraws.

For R2T4 purposes the student’s withdraw date is defined as:

  • The date the student began North Central Missouri College’s withdrawal process; or
  • The date, as determined by the school, the student otherwise notified the institution (in writing or orally) of intent to withdraw*; or
  • The student’s last date of attendance at a documented academically related activity.
  • Beginning with the 2011-12 academic year, the midpoint of the period of enrollment is used
    for a student who ceases attendance without notifying the institution (an unofficial
    withdrawal) rather than the last date of attendance.

*Notification of intent to withdraw is defined as written or oral notification from the student that he or she intends to withdraw from or cease to attend his or her course(s). This notification may be received by the following designated officials: the Financial Aid Cashier, the Associate
Director of Financial Aid, or the Director of Financial Aid. Intent to withdraw does not include informal conversations with college faculty or staff or with a designated official while they are not acting in their official capacity.

What is Title IV?

The term “Title IV Funds” includes the following programs:

  • Federal Pell Grant
  • Federal Supplemental Educational Opportunity Grant (SEOG)
  • Academic Competitiveness Grant (ACG) prior to 2011-12
  • Federal Subsidized Direct Loan
  • Federal Unsubsidized Direct Loan
  • Federal Direct PLUS Parent Loan

Return to Title IV Refund Policy

In accordance with federal regulations, Title IV funds are returned and allocated in the following order:

  1. Federal Unsubsidized Direct Loan
  2. Federal Subsidized Direct Loan
  3. Federal Direct PLUS Parent Loan
  4. Federal Pell Grant
  5. Federal Supplemental Educational Opportunity Grant (SEOG)
  6. Other Title IV programs

North Central Missouri College will perform the R2T4 calculation within the regulatory timeframe and return any funds necessary to Title IV programs upon completion of the calculation. If a student is required to repay unearned aid, NCMC will return the funds on the student’ s behalf. The student will then be responsible to repay NCMC the amount of the return.

Post-Withdrawal Disbursements (PWD)

If the R2T4 calculation shows the student is entitled to a post-withdrawal disbursement (PWD) of federal student aid, NCMC will notify the student in writing no later than 30 days of the date of determination of withdrawal regarding the available disbursement. The student has 14 days from the date of notification to respond to the college.

Federal grants will automatically be disbursed to the student unless written notification is received from the student no later than 14 days of the date of notification that the student chooses to decline the disbursement.

Federal Direct Loan disbursements will automatically be cancelled unless written notification is received from the student no later than 14 days of the date of notification requesting for the disbursement to be made. PLUS loan disbursements will also be cancelled unless written notification is received from the Parent borrower within the same 14 days requesting for the disbursement to be made.

In the event that the student responds after 14 days of the date that the notification was sent, NCMC reserves the right to decide whether or not to make a post-withdrawal disbursement. If the College decides not to make this post-withdrawal disbursement, it will inform the student in
writing.

Title IV funds will be applied to the students allowable charges first. Any excess funds will be refunded to the student.

Withdrawals and Modules

NCMC defines a course as a module if it does not span the entire length of the payment period(16-week standard fall or spring terms and 8-week standard summer term). A student is considered to have withdrawn if the student does not complete all of the days in the payment period he or she was scheduled to attend. Students may be considered to have withdrawn, even if a module course is completed within the same payment period. (See Example 1)

If a student drops a course in a later module while still attending a current module, the student is not considered to have withdrawn based on not attending the later module. However, a recalculation of aid based on the change in enrollment status may be required. (See Example 2) If federal aid has already disbursed to the student’ s account, the recalculationmay create a balance due. The student is responsible to pay the balance or make satisfactory payment arrangements
with Student Accounts.

If a student withdraws, officially or unofficially, from a current module and is NOT attending any other courses at the time of the withdrawal, the student is considered withdrawn and an R2T4 calculation will be completed. Students enrolled in future module courses are required to submit written confirmation of their intent to attend those courses. Written confirmation should be submitted at the time of withdrawal but no later than 5 business days from the date the student
was determined to be withdrawn or dropped from a course.

Students who do not provide the required written notice of the intent to attend future module courses at the time of the withdrawal will be considered withdrawn and the R2T4 calculation must be completed. Students who do provide the written confirmation are not considered withdrawn. However, if the student does not return as scheduled, the student is considered withdrawn and the R2T4 calculation will be completed and applied as if the written confirmation had not been provided. (See Example 3)

Example 1:

During the Fall term, Patch is enrolled in one first 8-week course and one second 8-week course, but is not enrolled in any other courses. If Patch completes the first 8-week course and then withdraws from the second 8-week course after the established add/drop period, an R2T4 calculation must be performed within 30 days, since at the time he withdrew he is not attending any other courses.

Standard Fall Term (16 weeks)
Session 1 (8 weeks)
Enrolled in 3 credit hours
Session 2 (8 weeks)
Enrolled in 3 credit hours

Patch completes Session1, then withdraws from Session 2 after the add/drop period. R2T4 recalculation of aid required.

Example 2:

During the Fall term, Patch is enrolled in one first 8-week course and one second 8-week course, but is not enrolled in any other courses. If Patch drops the second 8-week course while still attending the first 8-week course, Patch’ s financial aid will be reduced based on the change in his scheduled enrollment. Patch changed from halftime status to less than halftime status. Patch’s Pell grant or A+ would be reduced, and he could not receive any further loan disbursements during the Fall—he’ s not attending at least 6 hours! Since Patch is also now only scheduled to attend 8 weeks instead of the full 16-week term, his Cost of Attendance (COA, also referred to as the student’ s budget) will also be decreased.

Standard Fall Term (16 weeks)
Session 1 (8 weeks)
Enrolled in 3 credit hours
Session 2 (8 weeks)
Enrolled in 3 credit hours

Patch drops Session 2 course while still attending Session 1. R2T4 recalculation of aid will apply. His COA budget will be reduced as well. Patch changed from halftime to less than halftime status.

Example 3:

During the Fall term, Patch is enrolled in one first 8-week course and one second 8-week course, but is not enrolled in any other courses. If Patch withdraws from the first 8-week course after the established add/drop period, an R2T4 calculation must be performed within 30 days, even though Patch is registered for a second 8-week course, unless he provides written notification that he will attend the second course. (If Patch does not attend the second course as scheduled, the R2T4 calculation will be performed based on his initial withdrawal date.)

Standard Fall Term (16 weeks)
Session 1 (8 weeks)
Enrolled in 3 credit hours
Session 2 (8 weeks)
Enrolled in 3 credit hours

Patch withdraws from Session 1 only. R2T4 recalculation of aid required unless he provides written confirmation he will attend Session 2.

Timeframe for the Return and Disbursement of Title IV Funds

Federal regulations outline the timeframes for return and disbursement of Title IV aid as follows:

  • No later than 30 days of the date of determination of the withdrawal date, perform the Return of Title IV Funds calculation
    1. For an official withdrawal, the date of determination of the withdrawal date is the same as the withdrawal date.
    2. For an unofficial withdrawal, the date of determination of withdrawal must be made no later than 30 days after the end of the payment period.
  • No later than 30 days of the date of determination of the withdrawal date, notify the student if there is a post-withdrawal disbursement due to the student of loan funds or grant funds, if applicable.
  • No later than 45 days of the date of determination of the withdrawal date, return the school and/or student owed funds to the appropriate Title IV program account.
  • No later than 45 days of the date of determination of the withdrawal date, pay a student a post-withdrawal disbursement of grant funds
  • No later than 180 days of the date of determination of the withdrawal date, pay a student a post-withdrawal disbursement of loan funds, if student requested funds within 14 days of notification by the school of their availability.