Policies & Disclosures : Federal Funds Return Policy
Review this policy before withdrawing from courses or discontinuing attendance.
A student may find it necessary to withdraw from all classes during a semester. We recommend that before you withdraw, drop or stop attending classes, you speak with an academic advisor or a Financial Aid staff member to discuss what resources and options are available.
If a student withdraws from Northcentral Technical College, then the school, or the student, or both may be required to return some or all of the federal funds awarded to the student for that semester. The federal government requires a return of Title IV federal aid that was received if the student withdrew on or before completing 60% of the semester. Federal funds include Pell Grant, Supplemental Educational Opportunity Grant, Unsubsidized Direct Student Loans, Subsidized Direct Student Loans, and Parent PLUS Loans. The formula used in the federal return of funds calculation divides the aid received into earned and unearned aid.
A student "earns" financial aid in proportion to the time s/he is enrolled up to the 60% point. The percentage of federal aid to be returned (unearned aid) is equal to the number of calendar days remaining in the semester when the withdrawal takes place divided by the total number of calendar days in the semester. If a student was enrolled for 20% of the semester before completely withdrawing, 80% of federal financial aid must be returned to the aid programs. If a student stays through 50% of the semester, 50% of federal financial aid must be returned.
The Financial Aid Office calculates the amount of financial aid you have earned prior to your withdrawal date. Any aid received in excess of the earned amount is considered unearned. The unearned financial aid must be returned to the respective federal programs no later than 45 days from when the student withdrew from or ceased attending classes at Northcentral Technical College. The Federal Funds Return Policy applies to students who have received federal financial aid assistance and have officially or unofficially withdrawn from NTC. The official withdrawal date is defined as the actual date the student begins the College’s withdrawal process or the student’s last date of academically related activity. In compliance with federal regulations, the Financial Aid Office will perform the calculation within 30 days of the student’s withdrawal and funds will be returned to the appropriate federal aid program within 45 days.
If a student withdraws from school before 60% of the term has been completed, drops a class before the start date or within the first 10% of the class, or does not officially withdraw and receives all failing grades for the term, the Financial Aid Office will calculate the amount of unearned financial aid and return financial aid funds (in refund distribution order). For a student who withdraws after the 60% point-in-time, there is no unearned aid. However, a school must still complete a Return calculation in order to determine whether the student is eligible for a post-withdrawal disbursement.
If a student received all F's for a term, confirmation of attendance from appropriate instructors may be requested at the discretion of the Financial Aid Office. If attendance cannot be documented or certified by the faculty, the Financial Aid Office will complete a Return of Title IV Funds calculation using a 50% rate as prescribed by federal regulation. The student is notified of any financial liability resulting from this calculation.
Any funds that are to be returned by the College will be returned in the following priority order:
- Unsubsidized Stafford Loan
- Subsidized Stafford Loan
- Perkins Loan
Note: Students must drop classes online or through the Student Records Office. You will not be automatically dropped from classes by simply not attending. You will be liable for charges for classes not started unless they are dropped prior to the first day of the semester. View more information on NTC's Class Withdrawal (Drop) Information.
Student’s Responsibility / Notification to Student
Once the Return to Title IV Funds calculation has occurred, the Office of Financial Aid will notify the student of the results of the calculation and the aid that was returned. The Financial Aid Office will notify the student of any outstanding balance now due Northcentral Technical College as a result of the adjustment.
The student is billed for funds that NTC is required to repay. The NTC Business Office invoices the student. Account balances not paid within 30 days are turned over to a collection agency.
Any time you withdraw, drop or stop attending one or more of your classes it may impact your Satisfactory Academic Progress status. This may affect your ability to receive financial aid in the future. If your loans should go into repayment once you withdraw from school, it is important to make your payments on time to prevent default. If you default on a loan, you could lose your eligibility for any future financial aid.
If you have completely withdrawn, dropped, or stopped attending classes before you receive 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 Post-Withdrawal disbursement.
If a student withdraws and receives less federal student aid than the amount earned, then the student is entitled to a post-withdrawal disbursement. The student must have met all of the conditions for a late disbursement prior to
the date the student became ineligible (date of withdrawal). If the student is eligible for a post-withdrawal of grant funds,
NTC will apply the funds without the student’s permission to tuition, fees, and book charges up to the amount of the outstanding charges.
If the student or parent is eligible for a post-withdrawal refund from Title IV loans funds, the Financial Aid Office will notify the student or parent in the case of a PLUS loan, by providing written notification to the student, or parent in the case of PLUS loan funds.
The written notification will:
- Identify the type and amount of the Title IV funds that make up the post-withdrawal disbursement.
- Explain that the student or parent may accept or decline some of all of the post-withdrawal disbursement.
- Advise the student or parent that no post-withdrawal disbursement will be made to the student or parent if the student or parent does not respond within 14 days of the date the Financial Aid Office sent the notification, unless a decision is made by the Financial Aid Office to make a post-withdrawal disbursement.
If the student or parent submits a timely response that instructs the Financial Aid Office to make all or a portion of the post-withdrawal disbursement, the College will disburse the funds within 180 days of the determination that the student withdrew.
If the student or parent does not respond to the Financial Aid Office notice, no portion of the post-withdrawal disbursement may be disbursed.
If a student or parent submits a late response, The Financial Aid Office may make the post-withdrawal disbursement as instructed by the student or decline to do so.
If a student or parent submits a late response to the Financial Aid Office and a post-withdrawal disbursement is not made, the Financial Aid Office will inform the student or parent electronically or in writing concerning the outcome of the post-withdrawal request.
A post-withdrawal disbursement must be made from available grant funds before available loan funds.
Northcentral Technical College is required to disburse any amount of a Post-withdrawal disbursement of grant funds that is not credited to the student’s account. Moreover, NTC must make the disbursement as soon as possible, but no later than 45 days after the date of the school’s determination that the student withdrew.