If a student receiving Title IV funds completely withdraws from classes through 60% of the term, MIT is required to determine how much of the financial aid was earned up to the time of withdrawal. Unearned Title IV funds must be returned by MIT and/or the student to the federal government. This situation could result in the student owing aid funds to MIT, the government, or both.
The federal formula requires a return of Title IV aid if the student received any federal financial assistance (except Federal Work-Study) and withdrew on or before completing 60% of the term. To determine the amount of aid the student has earned up to the time of withdrawal, divide the number of calendar days the student attended classes by the total number of calendar days in the term. Scheduled breaks of more than five days or more are excluded. The percentage derived is then multiplied by the total federal funds that were disbursed (either to the student’s account and/or to the student in the form of a refund) for the term. This calculation determines the amount of aid earned by the student which he/she may keep (for example, if the student attended 25% of the term, the student would have earned 25% of the aid disbursed). The unearned amount (total aid disbursed less the earned amount) must be returned to the federal government by MIT or the student.
If it has been determined that a student has unofficially withdrawn, the Return to Title IV calculation will assume 50% completed—unless otherwise documented by the student.
Funds that are returned to the Federal government are used to reduce the outstanding balances in individual federal programs. Financial aid returned (by MIT and/or the student or parent) must be allocated in the following order:
Once a student's earned financial aid eligibility has been determined, the Office of Financial Aid will notify each withdrawn student of any loss of eligibility.
Loans disbursed in excess of eligibility are due based on the terms and conditions outlined in the promissory note(s). Most Direct Loan borrowers will be required to enter repayment six months after withdrawal—unless they begin classes on a half-time basis (6 credits undergraduate/4 credits graduate) before the end of their six month grace period.
MIT funding is adjusted after deducting the self-help amount and based on the student expense budget. The student expense budget may be modified to reflect any reductions made to the tuition charge as determined by Student Support Services.
It is important to realize that a key component of satisfactory academic progress is course completion. A total withdrawal contributes no completed credits to an academic transcript. Students completing less than a minimum of 67% of all credits attempted at MIT may lose financial aid eligibility.
Questions and concerns should be directed to the Student Financial Services at firstname.lastname@example.org or (617) 253-4971.