Financial Aid Policies

Return to Title IV Procedures

In accordance with 34 CFR 668.22, students who receive federal financial assistance and withdraw from all their classes before completing over 60% of the semester will be required to return any unearned federal funds. The amount of the return is calculated on a pro-rata basis.  Federal Work Study earnings are excluded from the calculation.  Madera Community College does not match FSEOG funds so only the federal portion of FSEOG will be included in the calculation. Effective May 24, 2021, Madera Community College uses the new R2T4 guidelines.

Refund requirements are provided to the students in the Terms of Agreement as well as on the  Madera Community College Website under Financial Aid Policies.

Since Madera Community 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 and Records Office that he or she intends to withdraw, or
• The midpoint of the semester for students who do not officially withdraw, or
• The date posted by the instructor on the Last Day Attended field, if populated, or
• The date the instructor or student dropped his/her courses in Self-Service.

The Admissions and Records Office will notify the Financial Aid Office of any student who officially withdraws.  The financial aid office also regularly runs a report to monitor students who have dropped to zero units.

The Financial Aid Office will return any funds due from the institution while simultaneously notifying the student of any funds he/she may owe or offer the student any post-withdrawal disbursement they may be eligible for which has not yet been disbursed. 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 final grade report for any student with zero units or all F grades. For students who do not officially withdraw, final grade reports are used to determine the withdrawal date and Madera Community College will return funds and notify students within 45 days of receipt of final grades.

The percentage of Title IV aid earned is calculated by using the Return of Funds Calculation (ROFC) screen in Colleague, which determines the percentage of payment period of period of enrollment completed and includes all days within the period that the student was scheduled to complete, except scheduled breaks of at least five consecutive days, which are excluded. The ROFC screen also ensures the correct order of return of Title IV funds:

1. Unsubsidized Federal Direct Stafford Loans
2. Subsidized Federal Direct Stafford Loans
3. Federal Direct PLUS received on behalf of the student
4. Remaining Funds
   1. Federal Pell Grants
   2. Iraq and Afghanistan Service Grants
   3. FSEOG Program aid
   4. TEACH Grants

To determine if a student was eligible to receive Title IV funds even though none were disbursed, the cash management rules of 668.164 (g)(2) will be applied. For a student to be considered an eligible student,  Madera Community College must have:

• Received an ISIR with an official calculated EFC while the student was still enrolled at Madera Community College
• For Pell Grants: received a valid SAR or ISIR
• For FSEOG awards: awarded the grant
• For Direct Loans: certified the loan application and if a first-year, first-time borrower, the student completed the first thirty days of the semester

The amount the college returns will be subtracted from the total sum that must be returned and the balance will be due from the student. The student will be responsible to return unearned funds in the same priority listed above.  However, students who have loans will return funds in accordance with the terms of the promissory note and grant funds to be returned will be reduced by 50%.  If a student owes $50 or less, an overpayment is not reported. The institution will charge the student the amount the institution is responsible for returning.

The student will have 45 days from the day they are notified from the college to repay the unearned Title IV aid in full, or to set up a satisfactory repayment arrangement with the  Madera Community College Business Office.  If payment has not been received, the student portion will be referred to borrower services and the student will be responsible for setting up a satisfactory repayment arrangement with the Department of Education.

Grant overpayments are reported to the National Student Loan Data System (NSLDS) marked with the appropriate flag corresponding to the action taken by the student. This report will take place within thirty days after:

• The student signs a satisfactory repayment agreement
• The student fails both to repay the overpayment and to sign a repayment arrangement with the college within the 45-day period
• The student fails to meet the terms of the agreement signed by the college

When the determination is made that the student did not receive all earned Title IV aid and the withdrawal date has been determined, the Financial Aid Office will send the student a letter offering the financial aid that was not yet disbursed. The student will be instructed to respond to the letter within 14 calendar days indicating whether or not the student wants the funds.  If the student requests that the earned Title IV aid be disbursed, a check will be ordered and disbursed to the student within 90 days of the college’s determination that the student withdrew.

For purposes of Title IV, students who receive Fs in all classes is considered as having withdrawn, unless they can produce verification from faculty that they attended an academic activity after the 60% mark.

IMPORTANT INFORMATION REGARDING WITHDRAWALS

All Classes Dropped

If you withdraw from ALL of your classes before 60% of the semester, you may be expected to repay all or a portion of your financial aid.

Dropping Below 6 Units

If you receive a financial aid check based on 6 or more units and then drop below six units to less than half-time prior to receiving your second check, you will be required to repay all or a major portion of your financial aid. For example, if your original Pell Grant for the semester was $2000 and you received your first disbursement of $1000 (50%), you would have to repay a significant amount if you dropped to less than half-time status.

Withdrawing Without Completing A Withdrawal Form

If you do not officially withdraw from your classes and receive all F’s, NC’s, I’s and W’s and did not attend classes through 60% of the semester, you may be expected to repay all or a portion of your financial aid.

Student Loan Borrowers

Withdrawing from all of your classes or dropping below 6 units will terminate your “IN-SCHOOL” status. Failure to re-enroll within the next six months will place your student loan in “REPAYMENT” status where you must begin making payments on your loan. Federal loans must be repaid regardless of whether you complete your college program or are able to find employment.

Avoid Repayment

If you dropped units, consider enrolling in short term, mid-semester classes. If you are thinking about dropping classes, contact the financial aid office to see if and how it may affect your eligibility. The Counseling Department is available to assist you in developing or modifying your class schedule.

TERMS OF AGREEMENT

Upon acceptance of financial aid (cashing a check or accepting direct deposit), I hereby certify that:

• I will enroll in an eligible program and attend classes at one (or more) of the campuses/centers through State Center Community College District.
• I understand that my financial aid award is subject to change according to my enrollment status.
• I understand that if repayment is required, I will be ineligible to receive any additional grant money until repayment is complete. I understand that under repayment or default status, academic transcripts will not be released to other institutions.
• I have read SCCCD’s Financial Aid Satisfactory Academic Progress Policy and understand I must meet these standards in order to continue receiving financial aid.
• I will promptly answer all letters related to my financial aid.
• I will notify the Financial Aid Office if I change financial aid unit status, change attending institution or enroll in more than one institution.
• I realize payment of EOPS or OASIS funds are contingent upon compliance with all applicable guidelines.
• I realize I must be in the proper number of units approximately ten days before check disbursement date in order to receive my financial aid and I understand that I may NOT be paid for short-term or wait-list classes until officially enrolled in and actually attending them.
• I agree to repay any funds disbursed to me in error, or for any period of time I was not eligible to receive funding or was not enrolled.
• I also understand that any fees owed to the institution will be subtracted from my financial aid check unless alternate payment arrangements have been made with the Campus Business Office.

I authorize SCCCD to release and / or transmit all information contained in my application for aid and / or concerning my prior year’s awards to any governmental agency, institution of higher education, scholarship donor or lending institution upon request of those agencies.

To the best of my knowledge, the information contained in my application is correct and complete. SCCCD has my permission to verify this information and I agree to release to the Financial Aid Office copies of my Federal Income Tax Return and other income and asset verification upon request. By accepting financial aid (cashing a check), I acknowledge that I have read and fully understand the provisions stated above. I certify that I am in full compliance with the terms listed above.

Financial Aid Repeat Coursework Policy