Return of Title IV Funds (R2T4)-Withdrawing from Classes

If you are thinking of withdrawing from your classes, immediately see an academic counselor. Additionally, withdrawing from your courses may have an adverse effect on your financial aid. In some cases, you may be required to return the financial aid you received in accordance with federal and state regulations. Contact the Financial Aid Office to discuss your options. 

Return of Title IV Funds (R2T4)

Federal financial aid (“Title IV funds”) is awarded to a student under the assumption that the student will attend school 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.

If a recipient of Title IV grant or loan funds withdraws from Mendocino College after beginning attendance, the amount of Title IV grant or loan assistance earned by the student must be determined. If the amount disbursed to the student is greater than the amount the student earned, unearned funds must be returned. If the student receives less Federal Student Aid than the amount earned, in rare cases, Mendocino College offers a disbursement of the earned aid that was not received. This is called a post-withdrawal disbursement.

Failure to repay any unearned aid may result in the debt being sent to the Department of Education for collections and could make you ineligible for future financial aid at other colleges.

Withdrawal Date

The withdrawal date established by Mendocino College is the date used by the Financial Aid Office to determine the point in time that the student is considered to have withdrawn so the percentage of the payment period or period of enrollment completed by the student can be determined. For more information on withdrawal dates for each semester, please review the Academic Calendar at http://www.mendocino.edu/academics/academic-calendar. The percentage of Title IV aid earned is equal to the percentage of the payment period or period of enrollment completed.

Since Mendocino College is not required to take attendance, a student’s withdrawal date for the return of Title IV calculation will be:

  • The date the student provides notification, orally or in writing, to the Admission’s Office that he or she intends to withdraw, or
  • The midpoint of the semester for students who do not officially withdraw, or
  • The last date of attendance as reported by the instructor and/or by email notification from the instructor. A counseling appointment or logging into a computer lab or science lab can be counted as a last activity.  

For purposes of Title IV, students who receive F's or NP’s in all classes will be considered withdrawn from classes. The last date of attendance that is reported by the instructor will be used to determine if the student earned their F. If a last date of attendance is not reported, the student can produce verification from faculty that they attended an academic activity late enough in class and earned their F. 

Process for Calculation of Amount of Title IV Aid Earned by the Student

The amount of Title IV aid earned by the student is determined by multiplying the percentage of Title IV aid earned by the total of Title IV program aid disbursed plus the Title IV aid that could have been disbursed to the student or on the student’s behalf.

For students who withdraw on or before the 60% point in the payment period or period of enrollment, the percentage earned is equal to the percentage of the payment period or period of enrollment that was completed. Students who withdraw at any point after the 60% point in the payment period or period of enrollment have earned 100% of their Title IV funds. Although no repayment will be required the “withdraws” will affect the student’s completion rate and the possibility of receiving further aid if Satisfactory Academic Progress is not being met.

Internal Process

The Admissions Office will notify the Financial Aid Office of any student who officially withdraws. The financial aid office also runs a report twice a month to monitor students who have dropped to zero units. The percentage of Title IV aid earned will be calculated by using the Colleague Student system.

The Financial Aid Office will return any funds due from the institution and will notify the student of any funds they may owe. If a student is due a post-withdrawal disbursement, they will be notified of the offer. This process will occur within 45 days of notification or within 45 days of the student appearing on the zero unit report or within 45 days of the final grade report for any student with zero units or all F grades. For students who do not officially withdraw, final grade reports will be used to determine the withdrawal date and Mendocino College will return funds and notify students within 30 days of receipt of final grades.

The student will be responsible to return unearned funds in the same priority listed below. However, students who have loans will return funds in accordance with the terms of the promissory note. If a student owes $50 or less, no amount is due to be paid.

In its notification, Mendocino College will inform the student that the student owes an overpayment of Title IV funds, that the student’s eligibility for additional Title IV funds will end if the student fails to pay Mendocino College by the 45th day following the date Mendocino College sent notification to the student, and that if the student fails to pay Mendocino College during the 45th day period, the student’s overpayment must be reported to the National Student Loan Data System (NSLDS) and referred to the Debt Resolution Services for collection.

Return of Funds

If the student receives more Federal Student Aid than the amount earned, Mendocino College, the student, or both must return the unearned funds in a specified order as follows:

  • Unsubsidized Direct Stafford Loans (other than PLUS loans)
  • Subsidized Direct Stafford Loans
  • Direct PLUS loans
  • Federal Pell Grants
  • Iraq and Afghanistan Service Grants
  • Federal Supplemental Educational Opportunity Grants (FSEOG)

When a Return of Title IV funds is due, Mendocino College and the student may both have a responsibility for returning funds. Funds that are not the responsibility of Mendocino College to return must be returned by the student. Mendocino College exercises its option to collect from the student any funds Mendocino College is obligated to return, and funds required for Mendocino College to return will become a debt on the student’s account which the student will be responsible for paying. This charge is not reported to the Department of Education and simply remains as a debt on the student’s account with Mendocino College until it is repaid. As mentioned above, students who fail to pay their unearned funds during the 45th day period will be reported to the National Student Loan Data System (NSLDS) and referred to the Debt Resolution Services for collection.

Post-Withdrawal Disbursement

When the determination is made that the student did not receive all of the earned Title IV aid and the withdrawal date has been determined, Mendocino College will make the funds available to the student. Federal loan funds will be made available within 30 days of the date our office determined the student withdrew. Mendocino College will request confirmation of acceptance or decline a loan payment before processing.  Federal grant funds will be made available within 45 days of the date our office determined the student withdrew.

During the COVID-19 pandemic, The U.S. Department of Education has provided some flexibilities with how we treat verified COVID-19 related withdraws during the covered period. Students will be notified about these flexibilities in the communication sent to each student who withdraws.