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Repayment Policy

What Happens If I Drop Some of My Courses after Receiving My Financial Aid

Reduced Enrollment
If a student drops units after receiving a grant disbursement, the student MAY be required to repay a portion or all of the grant.  

For example: 

  • If a student starts the semester with 12 units, is paid full-time on the first disbursement and then drops to 6 units, they will not receive ANY additional financial aid payments as the student already received aid for the 6 units.  
  • If a student starts the semester with 12 or more units, is paid full-time on the first disbursement and then drops to 9 to 11.5 units, they may receive an adjusted final disbursement based on three-quarter time enrollment. 
  • If a student starts the semester with 12 or more units, is paid full-time ($3,697.50) for their disbursement and then drops below 6 units, they would owe $1,848.75 back for the reduction in enrollment status.  
  • If a student starts the semester with 12 units, is paid full-time on the first disbursement, is only eligible for grants at full time (12+ units), then drops to 9 units, the student now owes ALL of the grant amount that was disbursed because they have to be in 12 units or more to be eligible for the grant. 
  • If a student starts the semester with 9 units, is paid ¾ time, is only eligible for grants at ¾ time (9 to 11.5 units) then drops to 6 units, the student now owes ALL of the grant amount that was disbursed because they have to be in 9 to 11.5 units to be eligible for the grant.  
  • If a student starts the semester with 6 units, is paid ½ time, is only eligible for grants at ½ time (6 to 8.5 units) then drops to 3 units, the student now owes ALL of the grant amount that was disbursed because they have to be in 6 to 8.5 units to be eligible for the grant. 

*If you have to drop a class(es) after receiving grant funds to attend those classes, be sure to contact financial aid to see how that reduction in units will affect your financial aid eligibility and if you will owe funds back.  

What Happens If I Drop All of My Courses after Receiving My Financial Aid

Return to Title IV Funds  
Students who completely withdraw from MSJC prior to completing the term may be required to repay all or a portion of any Title IV aid received. The amount that must be returned is calculated based on the percentage of the term that was completed prior to the student withdrawing from all classes (instructors may drop a student for non-participation). 

A complete withdraw can be categorized as an official withdrawal or an unofficial withdrawal: 

  • Official Withdrawal: If you completely withdrawal (stop attending) all of your registered classes after the semester as started 
  • Unofficial Withdrawal: If you do not successfully complete the semester with at least one passing grade. It is your responsibility to drop your classes, if you stop attending. 

According to the day you completely withdraw from all your classes, the Financial Aid Office will determine the part of the grant that you have "earned". Your enrollment status on this day will determine the amount you have "earned". 

Example: Say you receive a grant of $2,114.00. If there are 122 days in the term and you drop out on the 31st day then, you earned 25% of your grant.  The Financial Aid Office will calculate what portion of your grant you earned and did not earn.  $2,114.00 grant x 25% = $528.50 (earned) and; $2,114.00 grant x 75% = $1,585.50 (unearned).  

The college will pay back some of the unearned portion of the withdrawal on your behalf depending on the enrollment fees you were charged (including tuition, transportation fees, health fee, and any other mandatory enrollment fees, if applicable).  You will, however, owe these funds back to the college.  If you enrolled in 12 units at $46/unit, plus $6 transportation fee, and $20 health fee and any other mandatory fees = $578 x 75% (unearned) = $433.50 (college share). 

You will also have to pay back the unearned amount of the grant to the Federal program(s), minus the college share, times 50%.  $1,585.50 (unearned) - $433.50 (college share) = $1,152.00 you must pay the Federal program(s).  However, 50% of the amount of aid you could have been paid is protected, so you may only owe the college the portion paid back on your behalf. 

Don't worry if you don't understand, the Financial Aid Office will calculate the amount for you. 

If you received less of the award than you were eligible for, or that you "earned", you will receive a "post-withdrawal" disbursement. 

If you received Federal Work Study money and withdraw, you do not owe your earnings back. You always get to keep the salary you have earned. 

Based on FAFSA results some students need to be in a certain number of units to be eligible for a disbursement. If the student drops below the units that they are eligible for they may owe ALL of the amount disbursed back when they drop units.  

If you are thinking of withdrawing...
Immediately contact the Financial Aid Office and seek the counsel from one of our MSJC Counselors to discuss your academic and/or personal reasons for leaving. There may be other options such as pursuing a more manageable course load, utilizing tutoring services, and seeking personal support resources. 
 
Before you go...
Please work with the Financial Aid Office to understand the repayment process.  You will have 45 days to repay any money you owe to the Federal program(s).  Once the 45 days have passed, you will be reported for collection to the Department of Education Defaulted Resolution Group and will have to make repayment arrangements with the Federal government.  During this time, you will not be eligible for Title IV financial aid at any school.  If you make arrangements with the Federal government in a timely manner, you will maintain your student aid eligibility; however, you will still be in the collection process. Also, the debt due to the college for your withdrawal will need to be paid back or a hold will be placed on your account.

Department of Education - Defaulted Resolution Group Contact Information

If you would like to contact the Department of Education-Default Resolution Group after MSJC has reported your debt to collections, please allow 15 business days. You may contact the U.S. Department of Education:

Note:  Remember, your withdrawal will also affect a separate policy called Satisfactory Academic Progress. Even after you repay the amount you owe due to your withdrawal and the "Return of Title IV Funds", under the policy stated above, you will still be responsible for meeting the terms of Satisfactory Academic Progress in order to receive aid at MSJC the following semester.  Please refer to the Satisfactory Academic Progress Policy Statement or call the Financial Aid Office for more information.

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