Financial Consequences of Withdrawing or Not Passing Classes

In general, federal regulations assume that students “earn” federal financial aid in direct proportion to the percentage of the term they complete. Federal law requires schools to calculate how much federal financial aid a student has earned if that student:

  • Completely withdraws, or
  • Stops attending before completing the semester, or
  • Does not complete all modules (courses that are not scheduled for the entire semester) for which he/she has registered at the time those modules began.
  • Receives all Fs for all courses in any semester.

Based on this calculation, Moraine Park Technical College students who receive federal financial aid and do not complete all their scheduled classes during a semester could be responsible to repay a portion of the aid they received. Withdrawal from all courses before aid disbursements/refunds are available will lead to a recalculation of the financial aid award. One hundred percent withdrawals, class cancellations, not attending and complete withdrawals subject to the federal refund requirements may still require adjustments and repayments. Unearned funds must be calculated and returned as soon as possible but not later than 45 days from the determination of the student’s withdrawal. If you did not receive all of the funds that you earned, you may be due a post-withdrawal disbursement. 

What is the Withdrawal Date?

The return of Title IV funds process begins when the student officially and/or unofficially withdrawals from or stops attending courses. The withdrawal date used in the return calculation of a student’s federal financial aid is the date the student began the official withdrawal process and/or the date of the student’s notification that they wish to withdrawal. If a student stops attending classes without notifying Moraine Park Technical College, the withdrawal date will be the date that the instructor posts when they submit grades. This date coincides with the last date of attendance, the last date of an academic activity such as homework assignment, quiz, exam or graded paper.

Students Attending Module Courses

Courses which do not span the length of the semester are considered to be “module” courses. This includes 8 week courses during fall and spring terms and most courses attended during the summer. Students may be considered to have withdrawn, even if a module course is completed. If a student drops one or more courses and is no longer actively attending any courses, the student is considered withdrawn for financial aid purposes and aid must be adjusted accordingly. Students enrolled in future modules may be required to submit written confirmation they plan to attend those courses.

Post Withdrawal Disbursement

If the student did not receive all of the funds that were earned prior to withdrawing, a post-withdrawal disbursement may be due. If the post-withdrawal disbursement includes loan funds, the student must give permission before the funds can be disbursed. Moraine Park Technical College may automatically use all or a portion of the post-withdrawal disbursement of grant funds for tuition, fees, and room and board charges. Permission is required to use the post-withdrawal grant disbursement for all other school charges. Students will be notified of post-withdrawal disbursement eligibility within 30 days of the date of withdrawal determination. The school must return the Title IV funds within 45 days of the date the school determines the student withdrew.

Who returns the unearned federal funds?

The College and the student are both responsible for returning unearned federal financial aid to the federal government. Amounts that must be returned will be applied in the following order: Federal Direct Unsubsidized Stafford Loan, Federal Direct Subsidized Stafford Loan, Federal Direct Parent PLUS loan, Federal Pell grant, Federal Supplemental Educational Opportunity Grant, and Iraq and Afghanistan Service Grant. The College must return the lesser of 1) the total amount of unearned aid or 2) institutional charges multiplied by the unearned percentage. The student must return any remaining unearned aid not sent back by the College. The student also will be billed for any amount due the College resulting from the return of federal aid funds that were used to cover tuition and fees. For example, if the College is required to pay back to the government federal funds used to pay a portion of a student’s tuition for the semester, the student then must pay the college for that unpaid portion of their tuition. 

How do I repay the unearned funds?

The Moraine Park Office of Financial Aid will notify students if they owe federal funds back to the government. Amounts that must be returned by the student will first be applied to federal loans. Any grant amounts the student has to return to the federal government must be repaid within 45 days after the student receives notification from the Office of Financial Aid. If the student owes any money to the College resulting from the return of federal funds used to cover tuition and fees, the student will be billed by Moraine Park Technical College. The student must contact the Student Financial Services Office at (920) 924-3124 to make payment arrangements.

What happens if I don’t repay?

If a student does not pay funds due to the College to cover tuition and fees balance that resulted after the College returned their unearned portion of the federal funds, the student’s records will be placed on financial hold. This means you will not be permitted to register for classes or receive transcripts until your balance is paid. Students who do not make payments or satisfactory arrangements will also have their debts as well as all attorney fees, legal expenses and other collection costs submitted to outside collections and/or the State of WI Tax Refund Intercept Program for collection. Please contact the Student Financial Services Office at (920) 924-3124 for payment information. In addition, Moraine Park will refer all unpaid grant overpayments to the US Department of Education and you will become ineligible for further financial aid funding.

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