Pages - OverawardWithdrawalRepayment

Overaward, Withdrawal, & Repayment Policy

Overaward Status

If you are in Over Award Status, you will owe money back to the Federal aid program and may be ineligible for any additional funding at any institution. Federal funds received must be paid back within 45 days. If you have not paid the funds back, you will be reported to the National Student Loan Data System that will put a block on any future financial aid.

Two Examples of Over Award Status:

An Over Award occurs when you drop below half time enrollment status before the mid-semester Drop Dead Date and have received your first financial aid disbursement.
Any grant, scholarship, book voucher, or money received must be reported to Student Financial Services. Money received beyond your financial need (budget – EFC – financial aid = need) will put you in Over Award Status.

Withdrawing From Classes

If you withdraw from all classes before completing more than 61% of the semester, you will be required to return any "unearned" Federal funds. Federal work study earnings are excluded from the calculation. Your official withdrawal date will be the effective date of withdrawal entered into MPC's computer system. You will be notified of any funds you may owe, or you may be offered any funds which were not disbursed, within 30 days of the withdrawal date being posted.

If you drop all classes before the mid-Fall "drop dead" date or before the mid-Spring "drop dead" date, you will need to repay some or all of your Federal funds. If you officially drop your classes after these dates you will not need to repay Federal financial aid.

If you withdrew from school early and did not receive all of the Federal aid for which you were eligible, we will send you a letter offering the aid. You will need to notify us within 14 calendar days whether or not you want the funds. If you request the funds, a check will be mailed to you.

Example

For example, your award is $1837. There are 81 days in a semester. If you drop on the 10th day of the semester you have earned 12% of your grant.

Student Financial Services will calculate how much of the grant you did not earn:

10/81 days = 0.12 (12%)
$1837 x 12% = $220.44 (earned)
$1837 – $220.44 = $1616.55 (unearned)
$1616.55 (total) must be paid back to the Federal Programs

MPC is responsible for paying back a portion of the grant which is calculated based on the number of units you enrolled in. If you enrolled in 12 units your Enrollment Fee would be $132.00.

$132.00 x 12% = $15.84 (earned)
$132.00 – $15.84 = $116.16 (unearned)
$116.16 MPC must pay back to the Federal Programs (and you must repay MPC)

The amount that MPC has to pay to the Federal program will be charged to your student account and you will need to repay it to Monterey Peninsula College.

You must also pay back $1616.55 less $116.16 times 50% directly to the Federal Programs.

$1616.55 – 116.16 = $1500.39
$1500.39 x 50% = $750.20
$750.20 you must pay back to the Federal Programs

Students who have loans will return funds in accordance with the terms of the promissory note.

Over Awards may be avoided by:

Alway complete the number of units for which you originally enrolled at the beginning of the term.
If you have been enrolled in 6 or more units and received ½ of your financial aid, remain in 6 or more units. Once you drop below 6 units you will be in Repayment Status.
Always report any Outside Funding to MPC Student Financial Services before you receive financial aid disbursements.

Financial Aid

Overaward, Withdrawal, & Repayment Policy

Overaward Status

Two Examples of Over Award Status:

Withdrawing From Classes

Over Awards may be avoided by:

Repayments may be avoided by: Take or remain enrolled in 0.5 or more (other) units.