Return of Financial Aid
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 process is separate from Madison College’s state approved policy on tuition refunds.
- Types of Aid to Recalculate
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
- SEOG Grants
- Reasons for Recalculating
A Return of Title IV calculation must be performed for any of your classes that you:
- have officially withdrawn from.
- dropped within the refund period.
- stopped attending and were unofficially withdrawn (grade of F with date of last attendance).
- never attended.
Note: If you are decreasing enrollment but completing at least one class in the semester, be sure to understand enrollment status and how this situation impacts to your financial aid.
- Recalculation Process
A hold will be placed on your account if you received a financial aid disbursement for the semester and we are required to recalculate your financial aid. This hold will prevent you from accessing certain services until the recalculation is complete. This process may take up to 30 days from when the hold is placed on your account. Once the process is completed, you will receive a letter from Madison College that explains the calculation and the outcome.
- Possible Outcomes
After Financial Aid Disbursed
outcome 1: If it was determined that any financial aid was unearned, Madison College will return that amount to the applicable Federal Aid program. If you owe a balance as a result of the returned funds, the hold will remain on your account until this balance is paid in full.
outcome 2: If it was determined that all financial aid was earned, the hold will be removed from your account and no further action is necessary.
Before Financial Aid Disburses
If you have completely withdrawn, dropped, or stopped attending classes before you received financial aid, the Financial Aid Office must determine if you were eligible to receive any funding and the amount (if applicable). This is known as a Post-Withdrawal disbursement.
The amount of financial aid that you earned is determined by comparing the number of calendar days that you attended the class (determined by the date you withdraw, drop, or stop attending) against the number of calendar days for the entire class length. Calculations are based on each student's individual class schedule. If the percentage of days completed is less than 60%, some or all of the financial aid you received may have to be paid back.
- Dropping or Withdrawing from Classes
If you are a student who is considering dropping, withdrawing, or stop attending voluntarily for one or more courses, you should contact the Financial Aid Office and your Academic Advisor before taking action. Students who receive Financial Aid are required to complete at least 60% of their term, and meet Satisfactory Academic Progress. Failure to do so can resort in returning of Financial Aid. If this calculation is required, you may owe Madison College part or all of your Financial Aid back for that semester. This can result in a bill on your student account. Academic Advisors can discuss all options available to you regarding your classes so that you may not need to drop or withdraw. Ultimately, if you do decide to withdraw from all of your classes, you can do so by dropping all courses through your myMadisonCollege portal or contacting Enrollment Services. The appropriate offices will then be notified regarding Return of Financial Aid calculation and Satisfactory Academic Progress. You will be notified of any changes to your status or if a bill is due through myMadisonCollege.