Federal financial aid is referred to as “Title IV funds.” These funds are awarded to you for a given semester based on the assumption that you will attend all scheduled classes. If you do not complete all scheduled classes, the Financial Aid Office is required to calculate the amount of financial aid that you actually earned in a process called Return of Title IV. This is separate from Madison College’s state approved policy on tuition refunds.
The following federal aid funds may be affected if you withdraw, drop, stop attending, or never attend all of your classes: Direct Unsubsidized & Subsidized Loans; Direct Parent PLUS Loans; Pell Grants and SEOG Grants.
Process of Calculating Return of Title IV:
The Financial Aid Office will perform a Return of Title IV calculation if your currently scheduled classes are all, or any combination of the following:
A hold will be placed on your account within a couple days if you received a financial aid disbursement for the semester and withdraw, drop, stop attending, or never attend all of your classes. This hold will prevent you from accessing receiving certain services until the calculation is complete. A Return of Title IV calculation may take up to 30 days from when the hold is placed on your account. Once the Return of Title IV process is complete you will receive a letter from Madison College that explains the calculation and the outcome.
There are two possible outcomes from a calculation:
If you completely withdraw, drop, or stop attending before your financial aid is disbursed for the semester, you may be eligible to receive a Post-Withdrawal disbursement. A Post-Withdrawal disbursement is for students that were eligible to receive a disbursement, but the aid was unable to disburse before you stopped attending. The Financial Aid Office will determine if any aid was earned by using the calculation below.
The amount of aid that you earned is determined by comparing the number of calendar days elapsed from when you withdraw, drop, or stop attending against the number of calendar days within the class start/end dates. Calculations are based on each student’s individual class schedule. If the amount of days completed is less than 60% some or all of your financial aid received may be required to be paid back.
Any time you withdraw, drop, or stop attending one or more of your classes it may impact your Satisfactory Academic Progress standards. This may impact your ability to receive financial aid in the future. It is recommended that before you withdraw, drop, or stop attending any classes that you first speak with an academic advisor to discuss what resources and options are available.
Note: If you are decreasing enrollment, but completing at least one class in the semester, visit the Enrollment Status web page for complete information regarding the impact to your financial aid.
Questions? Visit askMadisonCollege to view frequently asked Financial Aid questions, submit a Financial Aid Category question, access the Financial Aid Tutorials for step-by-step instructions on related processes, or contact Madison College Financial Aid at (608) 246-6170.