Financial Aid Refunds & Repayments
Return of Title IV Funds
Federal law states that if a student receives federal financial aid and withdraws, quits attending, or drops out of all of their classes before completing at least 60% of the semester, the student must return a portion of the federal aid that was received.
- Any Title IV (federal) financial aid that a student receives will be considered to have been “earned” as long as they remain enrolled for more than 60% of the payment period.
- If a student withdraws from the college before more than 60% of the payment period is completed, they will be required to repay “unearned” federal financial aid.
- If the student receives all F grades for a term, they will be considered an “unofficial withdrawal” and will be required to repay at least 50% of the college’s charges.
- If the student has received financial aid and failed to attend classes, they are considered a “no show” and therefore have not established eligibility for any financial aid. No show students must repay in full any funds received.
- Return of Federal funds must be credited to the following programs in priority order based on the student’s receipt of funds: Stafford Loan (unsubsidized), Stafford Loan (subsidized), PLUS loan, Pell Grant, Supplemental Educational Opportunity Grant (SEOG), and Talent Incentive Program (TIP) Grant.
- The student will be billed for the amount to be repaid according to the above outlined financial aid regulations. These regulations must be enforced at every college; not just Mid-State. A Student must be reported to the Department of Education if Pell repayment arrangements have not been made within 45 days prohibiting the student from receiving any financial aid nationally. If a student owes a repayment to Mid-State for Return of Title IV Funds, their student records will be placed on hold prohibiting a student's receipt of any further financial aid funds, and any Mid-State student registration, grades, and/or transcripts.
Consult with Financial Aid Staff prior to withdrawal to discuss your individual situation.