Leave of Absence and Return of Title IV Funds
Leave of absence
Students who must interrupt their studies for adequate reason, such as sustained ill health or military service, may be granted a leave of absence for semester. McDaniel College’s academic leave of absence policy does not meet certain federal Title IV requirements; therefore a McDaniel College leave of absence after the semester starts will be treated as a federal withdrawal and would be subject to Title IV return of funds calculation.
Return of federal student aid
To remain eligible for federal student aid during the semester, the student must be attending classes, taking exams, and completing required course work.
Federal Regulations require the College to calculate a return of federal student aid funds for students who withdraw (officially or unofficially) from all classes on or before the 60 percent attendance point in the semester and for students who withdraw from any module-based courses.
If the student officially withdraws, the determination date is the date McDaniel College determines the student began the withdrawal process. If the student does not provide official notification of his/her intent to withdraw, the determination date will be determined as the date McDaniel became aware the student was not attending class. For official withdrawal, McDaniel uses the date the student provided official notification to withdraw as the withdrawal date. For unofficial withdrawals, the last date of academically related activity as given by a professor is used as the withdrawal date.
The calculation required determines a student’s earned and unearned Title IV aid based on the percentage of the enrollment period completed by the student. The percentage of the period that the student remained enrolled is derived by dividing the number of days the student attended by the number of days in the period. Calendar days (including weekends) are used, but breaks of at least 5 days are excluded from both the numerator and denominator.
Until a student has passed the 60% point of an enrollment period, only a portion of the student’s aid has been earned. A student who remains enrolled beyond the 60% point is considered to have earned all awarded aid for the enrollment period.
The unearned portion of federal student aid funds will be returned to the appropriate aid program(s). The funds are returned in the following order:
- Federal Direct Unsubsidized Loan
- Federal Direct Subsidized Loan
- Federal Perkins Loan
- Federal Graduate PLUS Loan
- Federal PLUS Loan
- Federal Pell Grant
- Federal SEOG Grant
Students withdrawing from classes are responsible for payment of any balance due after the required return of federal student aid funds.
Earned aid is not related in any way to institutional charges. In addition, the College’s refund policy and return of Title IV funds procedures are independent of one another. A student who withdraws from a course may be required to return unearned aid and still owe the College for the course.
Students who stop attending all classes without officially withdrawing will be subject to a return of federal student aid funds at the end of the semester based on the last documented date of attendance as determined by McDaniel College.
The responsibility to repay unearned Title IV aid is shared by McDaniel College and the student. For example, the calculation may require McDaniel College to return a portion of federal funds to the federal Title IV programs. In addition, the student may also be required to return funds based on the calculation. A student returns funds to the Federal Direct Loan program based on the terms and conditions of the promissory note of the loan. A student who receives federal grants may be required to repay 50% of the funds received.
How to Handle a Grant Overpayment
Students who owe funds to a grant program are required to make payment of those funds within 45 days of being notified that they owe this overpayment. During the 45 day period students will remain eligible for Title IV funds. If no positive action is taken by the student within 45 days of being notified, McDaniel College will notify the U.S. Department of Education of the student’s overpayment situation. The student will no longer be eligible for Title IV funds until they enter into a satisfactory repayment agreement with the U.S. Department of Education.
During the 45-day period, the student can make full payment to McDaniel College to cover the overpayment. The College will forward the payment to the U.S. Department of Education, and the student will remain eligible for Title IV funds.
If a student is unable to pay their overpayment in full, they can set up a repayment plan with the U.S. Department of Education. Before doing this please contact our office at 410-857-2233. You will need to make sure we have referred your situation to the U.S. Department of Education before any repayment plan can be set up.
If you want to contact the U.S. Department of Education, their address is listed below.
U.S. Department of Education
Student Financial Assistance Programs
P.O. Box 4222
Iowa City, IA 52245
For examples of the return of Title IV funds calculations or questions regarding the overpayment policy, please contact the Financial Aid Office.