Refund & Withdrawal Policies

Financial aid funds are awarded under the assumption that the student will attend the entire period for which funds were awarded.  When a student withdraws or otherwise ceases attendance before completing the entire payment period, s/he may no longer be eligible for the full amount of assistance that was originally awarded.  This policy describes how NMC determines the amount of financial aid that was earned and unearned at the time the student ceased attendance. 

Refund Policy

The U.S. Department of Education requires that institutions participating in Title IV federal financial aid programs must have a fair and equitable refund policy.  NMC's policy for refunding of tuition and housing charges is available online.  The College's refund policy applies only to institutional charges and does not affect the amount of a student's earned or unearned financial aid.  However, depending on the circumstances, refunds may be issued to the student or returned to federal financial aid programs in compliance with federal regulations.  In many cases, financial aid must be returned to the respective programs even after the College's refund period has ended.  This can result in the student having a new or larger balance owed to the College.

What is a Withdrawal?

For the purpose of this policy a withdrawal occurs when a student:

  • Drops or withdraws from all NMC classes during a semester or payment period, or
  • Is enrolled in modules (courses that do not span the entire term) and drops all subsequent courses in the term, or
  • Drops a course offered in modules without providing written confirmation of the intent to return before the end of the term, or
  • For clock hour programs, fails to complete the scheduled clock hours and weeks of instructional time in the payment period.

Withdrawal Process

The process to withdraw is outlined in the College Catalog.  Students who cease attending but do not complete the official withdrawal process may be charged for a greater portion of the semester than the time he or she was actually in attendance.  Therefore, it is always in the student's best interest to follow the official withdrawal process.

Withdrawal Date

This date is critical in determining the student's charges and refunds, in addition to the amount of financial aid the student has earned. 

  • For an official withdrawal from semester-length courses or clock hour programs, the withdrawal date is the date that the student began the withdrawal process, or the date the student officially notified the institution, in writing or orally, of his or her intent to withdraw.  
  • For an unofficial withdrawal from semester-length courses or clock hour programs, the withdrawal date is the last date the student either attended classes or completed an academic-related activity, as determined by the faculty teaching the course.  If the last date of attendance is not available, the withdrawal date will be the midpoint of the payment period. 
For an official or unofficial withdrawal from modular courses, the withdrawal date is the last date of participation in the course, according to the online activity logs for the course.

Payment Period

For credit hour programs, the payment period is the term or semester (fall, spring or summer).  For clock hour programs, the payment period is the period of time in which the student completes 50% of the clock hours and 50% of the weeks of instruction in the program. 

Treatment of Aid When a Student Withdraws or Does Not Complete the Scheduled Payment Period

Nebraska Methodist College & State Aid

For NMC scholarships or grants and the Nebraska Opportunity Grant, recipients will be allowed to keep the amount earned at the end of the first week of the term or payment period. However, the amount the student is allowed to keep will not exceed the amount of tuition, fees and other charges which NMC retains. 


Federal Aid

Federal law specifies how the College must determine the amount of Title IV assistance a student has earned if he/she withdraws from school during a payment period or term.  Title IV programs covered by this law are: Federal Pell Grants; Iraq and Afghanistan Service Grants; Direct Subsidized, Direct Unsubsidized, and Direct PLUS Loans; and Federal SEOG Grants.  The amount of assistance that is earned is determined on a pro-rata basis.  For example, if a student completed 30% of the payment period, s/he earned 30% of the assistance that s/he was originally scheduled to receive.  Once at least 60% of the payment period is completed, the student is considered to have earned 100% of the funds scheduled to be received for that period. 

A student who received less assistance than was earned may be eligible to receive those additional funds through a post-withdrawal disbursement.  If that includes loan funds, NMC must obtain the student's permission before we can disburse those funds.  A post-withdrawal disbursement of grant funds will be automatically credited toward any unpaid charges for tuition, fees and room. 

In some cases, a student may have been awarded Title IV funds that he/she is no longer eligible to receive after the withdrawal.  For example, if the student did not complete the Direct Loan application process by the last date of attendance, the Financial Aid Office is unable to originate that loan and request funds.

If a student received more assistance than was earned, the excess funds must be returned by NMC and/or the student.  It is possible that NMC charges once paid by federal financial aid may now become a debt that the student is responsible for paying. 

If the amount of aid disbursed exceeds the amount of earned aid, the unearned portion of the funds must be returned to the Title IV programs from which the student received aid during the term, in the following order:

  1. Unsubsidized Federal Direct Loan  
  2. Subsidized Federal Direct Loan
  3. Federal PLUS Loan
  4. Federal Pell Grant
  5. Federal SEOG Grant

The school must return a portion of the excess equal to the lesser of:

  1. The student's institutional charges multiplied by the unearned percentage, or
  2. The entire amount of excess funds.

If the total amount to be returned exceeds the amount that NMC is required to return, the student has an obligation to return the remaining amount.  Any loan funds that must be returned by the student are repaid according to the terms of the promissory note.  That is, the student makes scheduled payments to the holder of the loan over a period of time.  If a repayment is due to a grant program, the maximum amount of grant funds to be repaid is half of the grant funds the student received or was scheduled to receive.  No repayment is required if the original amount of grant overpayment is $50 or less.

Upon notification that a student has withdrawn, the Financial Aid Office will calculate the student's earned and unearned aid.  The student will be notified of any funds returned by NMC to the respective financial aid programs, as well as any repayment for which the student is responsible.  If the College is required to return funds that were used to pay the student's charges, NMC will bill the student for those charges that are no longer considered paid. 

Students who owe a repayment to a federal grant will have 45 days from the date the school sent the notification to take one of the following actions. 

  1. Repay the overpayment in full to the school.
  2. Sign a repayment agreement with the school.  Maximum repayment period is two years.
  3. Sign a repayment agreement with the US Department of Education. 

If the student fails to take one of these actions within 45 days, the school is required to report the overpayment to the US Department of Education's Debt Resolution Services for collection, and the student will be ineligible to receive additional federal financial assistance.