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MSJC > Student Services > Financial Aid > Repayment Policy

Repayment Policy

If you receive a GRANT and then WITHDRAW from one or all of your classes, you will OWE money back to the federal program. Here's how it works:


If you receive a grant and you withdraw from one or more of your classes, you will owe back money.


EXAMPLE: If you were enrolled in 12 units and received a Pell grant of $2000.00, then you withdraw from 2 classes (6 units) you would then owe $1000.00.


According to the day you completely withdraw from all your classes, the Financial Aid Office will calculate the part of the grant that you have "earned". Your enrollment status on this day will determine the amount you have "earned".


EXAMPLE: Say you get a $1000 grant. If there are 100 days in the term and you drop out on the 25th day, then you earned 25% of your grant.

The financial aid office will figure out what portion of your grant you earned, and did not earn.
$1000 grant x 25% = $250 earned; $1000 x 75% = $750 unearned.
The college will owe some of the money back depending on the enrollment fees you paid (includes tuition transportation fees for all students and *if applicable, any other mandatory enrollment fees, ex. testing fees).
If you took 12 units at $46/unit, plus $6 TSF (*plus any other mandatory fees) = $558x75% (unearned) = $418.50 the college has to pay. You will owe these funds back to the college.
You will also have to pay back the federal program(s) the unearned amount, minus the college share, times 50% if it is a grant.
$750 - $418.50 = $331.50 you have to pay the federal program. However 50% of the amount of aid you could have been paid is protected, so you may only owe the college the portion they must pay on your behalf. (Don't worry if you don't understand, the financial aid office will calculate the amount for you.)

If you receive WORK money and withdraw, you do not owe anything back. You always get to keep the salary you have earned. If you received less of the award than you were eligible for, or that you "earned", the school will pay you a "post-withdrawal" disbursement.

If you are thinking of withdrawing or just leaving school totally…
Please, think this over.

Immediately see a financial aid and/or counseling representative and discuss your academic or personal reasons for leaving. Perhaps you can stay but take fewer courses. Maybe there are services (like tutoring or personal support) that can assist you in staying in school. Talk to your instructors; see what advice and help they may offer.

Don't leave unless you must! But if you must, take care of business before you do.
Learn how much you will owe and how you will have to repay it.

Please work with the Financial Aid Office staff. You will only have 45 days to repay any money you owe the Federal Program. Once the 45 days has passed, you will be reported to collections and will have to make repayment arrangements with the federal government.  At this time, you will not be eligible for any Title IV financial aid at any school. If you make arrangements with the federal government in a timely manner, you won't lose your student aid eligibility.  However, you will still be in collections. Also, the debt due to the college for your withdrawal will need to be paid or a hold will be placed on your account.

Note: Remember, your withdrawal will also affect a separate policy called Satisfactory Academic Progress. Even after you repay the amount you owe due to your withdrawal and the "Return of Title IV Funds", under the policy stated above, you will still be responsible for meeting the terms of Satisfactory Academic Progress in order to receive aid at MSJC the following semester. Please refer to the Satisfactory Academic Progress Policy Statement or call the Financial Aid Office for more information.