Return of Title IV Funds Policy

The Higher Education Amendments of 1998, Public Law 105-244, details the way funds paid toward a student’s education are handled when a recipient of Title IV funds withdraws from the school. Title IV funds include Federal Pell Grant and Federal Supplemental Educational Opportunity Grant.

If a recipient of Title IV funds withdraws from school then the institution (MCC) uses a pro rata schedule to determine the amount of Title IV funds the student has earned at the time of withdrawal.

If the amount of Title IV aid disbursed to the student at the time of withdrawal is greater than the amount of aid earned by the student, unearned funds must be returned to the fund from which the aid came. If the amount of Title IV aid disbursed to the student is less than the amount of aid earned, then the student is eligible to receive a post-withdrawal disbursement of the earned aid that was not received. The student will be responsible for repaying all Title IV aid that was received but not earned.