Withdrawals and Return of Title IV Aid

Students who officially or unofficially break enrollment (withdraw, fail to return from an approved leave of absence or are dismissed from enrollment at MTSA) and are recipients of Title IV (federal) aid, may owe a repayment of federal aid back to the Department of Education. Title IV funds include Federal Direct Unsubsidized Loans and Federal Grad PLUS Loans. Students should be aware that eligibility for future federal aid may be jeopardized by withdrawing from MTSA after federal aid has been disbursed.

MTSA Refund Policy

MTSA will permit any student to cancel their enrollment agreement within 72 hours of the enrollment day.  Should a cancellation occur MTSA will refund 100% of the first tuition payment that was made by the student, minus the deposit submitted to hold the student position in class.  Students who have  been given a medical withdrawal are assessed and adjusted no differently than other withdrawals.

Pro Rata Refund
If a student withdraws or is terminated from the program after the period allowed for cancellation of the enrollment agreement and has completed 60% or less of the period of attendance (semester), the student is entitled to a partial prorated refund.  MTSA will calculate whether a tuition refund is due, and if so, remit a refund within 45 days following the student’s withdrawal or termination. For students receiving funds through the Federal Student Aid program, unearned funds will be returned to the aid programs in the order required under Federal Law.  For students receiving funds through a non-federal loan, the VA, or sponsor, unearned funds will be returned to the lender or agency.  Any remaining balance will be paid to the student.  The pro rata percentage is based on days of attendance within the period of attendance.  Students who stop attending all classes but do not complete the official withdrawal process could owe a repayment of Title IV funds.  Please contact the Office of Financial Aid (615-732-7884) for more information.

Determination of the Withdrawal Date
The student’s withdrawal date is the last date of the academic attendance as determined by the institution from its attendance records.  If the institutional leave of absence is not considered an official leave of absence for Title IV purposes, the withdrawal date for a student/Fellow who takes an institutional leave of absence is the last date of attendance prior to the leave.

*Official withdrawal process

1. Notify in writing the Program Administrator who will in turn notify the Dean of your intent to withdraw

2. Schedule an appointment with the Dean

3. Return MTSA student ID badge, and any school or hospital-issued materials.

*Students receiving Veterans Benefits withdrawal process

1. Complete withdrawal procedure as noted above.

2. Contact the Office of Financial Aid for information regarding your veterans’ benefits.

3. It is VA’s policy, if you withdraw from your program at MTSA, Veterans Affairs (VA) must reduce or stop your benefits. You may have to repay all benefits for the program unless you can show that the change was due to mitigating circumstances.*

Mitigating circumstances” are unavoidable and unexpected events that directly interfere with your pursuit of a course and are beyond your control. Examples of reasons VA may accept are extended illness and unscheduled changes in your employment.  Examples of reasons VA may not accept are withdrawal to avoid a failing grade or dislike of the instructor. VA may ask you to furnish evidence to support your reason for a change. If a serious injury or illness caused the change, obtain a statement from your doctor. I f  a change in employment caused the change, obtain a statement from your employer.

Return of Title IV funds

If a student ceases attendance from all his or her courses within a period of enrollment, the student will be considered a withdrawal for Title IV purposes. Students who elect to withdraw from courses must follow MTSA’s official withdrawal process.*  The amount of federal aid a student earns, in their 30 week payment period, is determined on a pro rata basis (for example: if you complete 30% of your payment period or period of enrollment, you earn 30% of the assistance you were originally scheduled to receive). Students who withdraw prior to completing 60% of the payment period will have their financial aid prorated and unearned funds returned to reimburse the appropriate Title IV programs. After the 60% point, the student is deemed to have earned 100% of the Title IV funds. Federal funds will be returned based on the percentage of period completed.

The effective withdrawal date is used to determine the point in time that the student withdrew or ceased to attend so that the percentage of the enrollment/payment period completed can be determined. MTSA has 45 days from the date that it determines a student withdrew to return all unearned funds for which it is responsible.

Federal regulations stipulate how the return of Title IV Funds is calculated for students who have received federal assistance. If the student did not attend 60% of the payment period, the aid must be returned to the appropriate program in the following order:

  • Unsubsidized Federal Direct Loan
  • Federal Grad PLUS Loan

Post-Withdrawal disbursement

In rare cases, a student may be eligible to receive a late disbursement of Federal student aid funds that were not disbursed before a student withdrew but which the student has earned based on a Return of Title IV Funds calculation. This must be offered within 30 days of the student’s withdrawal date. In such cases, the Financial Aid Office will notify the student of the “post-withdrawal” disbursement via an award notification. The school will advise the student that they have 14 calendar days from the date of the award notification to accept a post withdrawal disbursement.

Leave of Absence

A Temporary Leave of Absence (TLOA) is a temporary interruption in a student’s program of study and refers to the specific time period during a program when a student is not in attendance. Each student requesting a TLOA must complete the MTSA Request for Temporary Leave of Absence form and be intent on returning to MTSA. See the Student Handbook for MTSA’s Temporary Leave of Absence Policy.

In order for the Leave of Absence to be an approved LOA for Title IV purposes:

  • The student must follow the school’s policy in requesting the TLOA;
  • There must be reasonable expectation that the student will return from the LOA;
  • The TLOA must be approved in accordance with the school policy;
  • The student must apply for the TLOA in advance, unless unforeseen circumstances prevent the student from doing so; i.e., a medical emergency, death in the family, etc.

If the student is in receipt of Title IV loans (Direct Unsubsidized, or Grad PLUS loans) and does not return from an approved leave of absence, the student may exhaust some or all of their loan grace period. The date of withdrawal (for purposes of Title IV programs) will be backdated to the first day of the student’s approved leave of absence.

See MTSA’s Approved Leave of Absence for Title IV criteria.