A refund is the amount of money that the college will credit to a student account and/or to a financial aid program account when the student leaves school before completing a period of enrollment. No refund of tuition is made to a student who simply drops a course. Refunds may or may not result in a student account credit that would lead to an eventual disbursement of cash to a student. Students who withdraw from the college are subject to adjustments in their financial aid. Students are cautioned that withdrawal from the college may result in a larger balance due from the student and that such balance will be due and payable at the time of withdrawal.
Once a student has withdrawn from the college, refunds will be computed and credited by the College Business Office within thirty days of notification of withdrawal. No separate refund request is necessary. All refunds will be by check and mailed to the address on record. No refund will be made for amounts less than $5.00.
Student loans, scholarships, and grants will first be reviewed and attributed to the appropriate academic session. For example, the Federal Direct Program loans (Stafford, PLUS, etc.) are considered to be made in proportionate amounts corresponding to the number of academic sessions covered by the loan (typically two semesters). Any portion of such loans attributable to a session that the student did not attend must be returned to the appropriate program account. The student’s account will be adjusted accordingly.
Withdrawal Refund of Institutional Charges Policy
The Withdrawal Refund of Institutional Charges Policy dictates the official withdrawal date used to determine refunds of assistance and cancellations of charges.
Return of Title IV (Federal) Aid Policy
When any student (new or returning) withdraws from all coursework during a semester, (either officially or unofficially), and the student has received any Title IV federal funds (excluding Federal Work Study wages), the federal government requires the college review the student’s eligibility for those funds. The college will utilize the federally mandated formula to determine the level of federal funding which has been “earned” and which the student is entitled to keep at the time of withdrawal from the college. This review and recalculation of aid eligibility is officially referred to as “Return of Title IV Aid.”
Any student who withdraws prior to the last day to add or drop a course without a fee (typically the end of the first week of classes) in any semester is not considered to have been enrolled for that semester and will have all federal aid returned and all direct charges (for tuition, room and board) reversed by the college.
Any student, who has completed 60 percent of the semester, is considered to have “earned” all of his/her financial aid. No refund of institutional charges, nor Return of Title IV federal funding is required.
Any student who remains enrolled beyond the last day to add or drop a course without a fee (typically the end of the first week of classes) but withdraws from all coursework prior to completion of 60 percent of the semester, will have their institutional direct charges, as well as, their federal financial aid pro-rated at a percentage equal to the percent of the semester which has passed. Federal guidelines provide the college with appropriate parameters with which to calculate the appropriate percentage. If the student is owed a disbursement, the funds will be made directly to the student’s account.
If Title IV funds were disbursed to a student’s account in excess of the calculated “earned” amount, then funds must be returned to the federal government by the college and/or the student and will done within 45 days of the date of the determination of student’s withdrawal. The Financial Aid Office will notify a student with instructions on how to proceed if the student is required to return funds to the government.
To determine the date used for the Return of Title IV funds, the college will first determine if it is an official or unofficial withdrawal.
- Official Withdrawal:
- For a student to be considered officially withdrawn, he/she must notify the college in writing or orally of his/her intent to withdraw by contacting the Office of Student Affairs. The withdrawal date is the date that the student notifies the Office of Student Affairs of his/her intent to withdraw and/or begins the withdrawal process by completing a withdrawal form.
- Unofficial Withdrawal:
- If a student ceases attendance without providing official notification to the College, the withdrawal date will be the last day of an academically-related activity, as documented by the College or if past the 60% point, then the midpoint will be used.
Funds that are returned to the federal government are used to reduce the outstanding balances in individual federal programs. Financial aid returned by the student/parent or the college will be allocated in the following order:
- Federal Unsubsidized Direct Loans
- Federal Subsidized Direct Loans
- Federal Perkins Loans
- Federal Direct Parent (PLUS) Loans
- Federal Pell Grants
- Federal Academic Competitiveness Grants
- National SMART Grants
- Federal SEOG Grants
- Federal TEACH Grants
- Iraq Afghanistan Service Grants
In some cases, a student may be eligible for a post-withdrawal disbursement if, prior to withdrawing, the student “earned” more federal financial aid than was disbursed at the time. If a student is eligible for a post-withdrawal disbursement for Title IV funds, it will be processed for the student and any subsequent refund due the student will be processed within 14 days per the Credit Balance Refund Policy.
If a post-withdrawal disbursement included loan funds, the college will obtain the student’s permission before disbursing the loan. A notice will be sent to the student and the student must be respond in writing within 14 days. Students may elect to decline some or all of the loan funds so the student does not incur additional debt.
The college may automatically use all or a portion of the post-withdrawal disbursement in the form of grant funds to cover the tuition and fees incurred by the student. However, the college will obtain permission from the student to use post-withdrawal grant disbursement for all other charges incurred by the student.
Refund of Funds from the Illinois Student Assistance Commission Monetary Award Program (MAP)
Per the rules of the Illinois Student Assistance Commission, if an IL MAP Grant recipient withdraws after the end of the second week of the semester, the student may receive a MAP grant payment for costs incurred up to the semester award provided the college's tuition refund policy indicates that the student has incurred charges in the amount of the claim.
Refund of Institutional Financial Aid
Institutional financial aid may consist of Monmouth Grant, Monmouth Scholarships and Monmouth Loans. The refund/cancellation of institutional financial aid follows the pro-rata policy for the cancellation of institutional charges.
When a student withdraws prior to completing 60% of a semester, a pro-rated portion of his/her institutional financial aid will be returned to the program(s) from which the student received funds. After completing 60% of the semester, there is no cancellation of financial aid.
A student who withdraws prior to the last day to add or drop a course without a fee (typically the end of the first week of classes) is not considered to have been enrolled for that semester and therefore 100% of the student's institutional aid will be cancelled.
Refund of Private Scholarships, Grants and Loans
Unless otherwise requested by the donor of a private scholarship or grant award, the funds will be retained to cover the costs incurred by the student. Excess funds will be returned to the donor. Private/alternative loans will be the last item retained to cover the costs incurred by the student. This will ensure a student has as little loan indebtedness as possible. Excess loan proceeds will be returned to the lender.
Loan Exit Interview Required
Students who borrow through either the Perkins Loan and/or the Direct Loan program are required to complete an exit interview online to ensure that they fully understand their commitments and obligations under these federally-funded programs. It is required that a student be informed of their rights and their responsibilities as a borrower through a federal program.
An appeal process exists for students or parents who believe that individual circumstances warrant exception from published College charges and refund policies. Persons wishing to appeal for special consideration should address such an appeal in writing to the Vice President for Finance and Business at Monmouth College.