Policy 4.08
Financial Aid
Part 1. Purpose
This policy establishes Minneapolis College’s guidelines for the return of Title IV and Non-Title IV financial aid funds. Financial aid recipients who completely withdraw or stop attending prior to the 60% point of the term are subject to the federal return of Title IV fund rules and the Minnesota Office of Higher Education refund calculation for state financial aid.
Part 2. Definitions
Title IV Funds: Federally funded aid such as Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (SEOG), or Federal Subsidized and Unsubsidized Loans.
Non-Title IV Funds: State or agency-funded aid such as Minnesota State Grant, Minnesota SELF Loan, etc.
Part 3. Satisfactory Academic Progress
Students must meet and maintain Satisfactory Academic Progress requirements to remain eligible for financial aid funds. Please refer to Minneapolis College Policy 4.13 for details on Satisfactory Academic Progress requirements.
Part 4. Return of Financial Aid Funds
Subpart A. Return of Title IV Funding (34 CFR 668.22):
The Return of Title IV Funds Policy applies to any student who receives Title IV funding and ceases to be enrolled before the end of a period of enrollment (e.g. Fall, Spring, or Summer Semester). A student is considered to have withdrawn if the student does not complete all the days in a period of enrollment that the student was scheduled to complete.
Title IV funds are awarded to a student under the assumption that the student will attend courses for the entire period for which the assistance is awarded. When a student withdraws, the student may no longer be eligible for the full amount of Title IV funds that the student was originally scheduled to receive.
Regardless of whether or when the student begins the official withdrawal process or whether the student gives oral, written, or electronic notification to the College of their intent to withdraw; if a student ceases attendance from all Title IV eligible courses in a given period of enrollment, the student is considered a withdrawal for Title IV purposes.
The last date of attendance/participation in the course is used to determine the withdrawal date, whether the withdrawal is official (student actively withdraws) or unofficial (instructor records a last date of attendance which results in a withdrawal). The U.S. Department of Education Return of Title IV Funds formula determines the amount of Title IV Funds a student has earned as of the date the student ceased attendance, based on the amount of time the student spent in attendance.
The amount of Title IV funds a student earns is a proportional calculation based on the number of days the student attends courses through 60% of the term. If a student ceases to attend courses after the 60% point, a student has earned 100% of the Title IV funds the student was scheduled to receive during the period. (Note: this may differ if a student is enrolled in short-term courses, and thus the period of enrollment differs from the standard term.)
If the amount of Title IV funds disbursed is greater than the amount a student earned, the unearned funds must be returned within 45 days of the withdrawal date.
Subpart B. Order of Return of Title IV Funds:
The College returns Title IV Funds in the following order, up to the net amount disbursed from each:
- Unsubsidized Federal Stafford loans
- Subsidized Federal Stafford loans
- Federal PLUS loans
- Federal Pell Grant
- Federal SEOG (grant)
- Other Title IV grant or loan assistance
If the amount of Title IV funds disbursed (if any) is less than the amount the student earned, the student is eligible for a post-withdrawal disbursement. If a student is eligible for a post-withdrawal disbursement of a Direct Loan, the student will be sent a notice and must notify the College that they want the loan applied to their account. A post-withdrawal disbursement of the Pell Grant will automatically be applied to tuition and fees.
Subpart C. Non-Federal Refund Policy:
Refunds for state aid programs and non-state aid programs are calculated on a proportional basis using the state-mandated or institutional refund policy. To calculate the minimum refund due to the Minnesota State Grant Program, the SELF Loan program, and other state aid programs (except the Minnesota State Work-Study program), the Minnesota Office of Higher Education Refund Calculation Worksheet is used.
Owner(s) Title: Vice President of Student Affairs
Date of Adoption: Original date not currently documented.
Date of Implementation (if different from adoption date): N/A
Date Last Amended: 5/20/2021 (Comprehensive)
History and Subject of Revisions: 05/20/2021 (Comprehensive review, added purpose and definitions), 2/26/2016
Regulatory Authority (e.g. Minnesota State policy, federal or state law): Federal Regulatory Code: 34 CFR 668.22,