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 after the enrollment contract is signed. Should a cancellation occur, MTSA will refund 100% of the first tuition payment that was made by the student, minus the deposit ($4000.00) submitted to hold the student position in class.

MTSA follows the federal guidelines on returning Title IV monies if a student ceases enrollment.  **Students will be responsible for any unpaid institutional charges that result from the return of funds to the Title IV programs. **

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.


*Official withdrawal process:

  1. Notify in writing (i.e. email) Dean/Program Administrator your intent to withdraw.
  2. Schedule an appointment to meet with Dean/ Program Administrator
  3. Complete withdrawal request form and submit to Office of Financial Aid. Form must be signed by the Dean/ Program Administrator and the Director of Financial Aid.
  4. Return MTSA student ID badge, all hospital badges, MTSA Textbooks, parking passes, and classroom clicker.


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.