Withdrawal and Return of Financial Aid

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Federal financial aid is referred to as “Title IV funds.” These funds are offered to you for a given semester based on the assumption that you will attend all scheduled classes. If you do not complete all scheduled classes, the Financial Aid Office is required to calculate the amount of financial aid that you earned in a process called Return of Title IV. This process is separate from NWTC’s policy on tuition refunds.

Types of Aid to Recalculate

The following federal aid funds may be affected if you withdraw, drop, stop attending, or never attend all of your classes.

  • Direct Unsubsidized & Subsidized Loans
  • Direct Parent PLUS Loans
  • Pell Grants
  • SEOG Grants

Reasons for Recalculating

A Return of Title IV calculation must be performed for any of your classes that you:

  • have officially withdrawn from.
  • dropped within the refund period.
  • stopped attending and were unofficially withdrawn (grade of F with date of last attendance).
  • never attended. (No Show grades)

Note: If you are decreasing enrollment but completing at least one class in the semester, be sure to understand enrollment status and how this situation impacts to your financial aid.

Recalculation Process

A hold will be placed on your account if you received a financial aid disbursement for the semester and we are required to recalculate your financial aid. This hold will prevent you from accessing certain services until the recalculation is complete. This process may take up to 30 days from when the hold is placed on your account. Once the process is completed, you will receive a letter from the Financial Aid Office that explains the calculation and the outcome.

Possible Outcomes

After Financial Aid is Disbursed

OUTCOME 1: If it was determined that any financial aid was unearned, NWTC will return that amount to the applicable Federal Aid program. If you owe a balance because of the returned funds, the hold will remain on your account until this balance is paid in full.

OUTCOME 2: If it was determined that all financial aid was earned, the hold will be removed from your account and no further action is necessary.

Before Financial Aid Disburses

If you have completely withdrawn, dropped, or stopped attending classes before you received financial aid, the Financial Aid Office must determine if you were eligible to receive any funding and the amount (if applicable). This is known as a Post-Withdrawal disbursement.


The amount of financial aid that you earned is determined by comparing the number of calendar days that you attended the class (determined by the date you withdraw, drop, or stop attending) against the number of calendar days for the entire class length. Calculations are based on each student's individual class schedule. If the percentage of days completed is less than 60%, some or all the financial aid you received may have to be paid back. Learn more about the Return of Financial Aid Policy.

Other Impacts

Any time you withdraw, drop or stop attending one or more of your classes it may impact your Satisfactory Academic Progress status. This may also affect your ability to receive financial aid in the future. If you intend to withdraw from the college, you should contact the Financial Aid office about your decision. For additional support, before you actually withdraw, drop, or stop attending any classes, you should speak with your academic advisor to discuss available options.

8 Week Session Withdrawal

The U.S. Department of Education has specific regulations for the Return of Title IV calculation for students enrolled in modular courses. Modular courses are defined as those that do not span the entire length of the term and are offered sequentially rather than concurrently (although it is possible for modules to overlap). At NWTC, 1st 8 week Session and 2nd 8 Week Session would be considered modules for financial aid purposes.

Regulations require the entire period and combination of modular courses to be considered when determining the portion of financial aid that has been earned by a student who withdraws. The student is considered withdrawn when they fail to complete the scheduled enrollment.

Be sure to monitor your NWTC student email carefully. If you drop, withdraw from, or do not fully complete your current module, you will be considered withdrawn from the semester, even if you are still enrolled in a future modules. In this case you may be emailed a request to complete a survey verifying your Intent to Attend in future modules. If you do not complete this survey, a return of federal aid calculation may be required.

A student who withdraws from a current module but provides written confirmation(by completing the Intent to Attend email sent from the Financial Aid Office) of plans to return and attend a future module that begins within 45 days of the end of the current module is considered to still be enrolled.

  • If the student provides written confirmation but then fails to attend a future module, the student is considered withdrawn from the initial date of the original module.
  • If the student withdraws without a written confirmation to attend in the future but returns during the same period, the student is able to receive all funds for which the student has eligibility according to their current enrollment status.

The Pell Grant must always be adjusted to exclude payments for any course you do not participate in. If you drop a course before that course session began, we are required to make a Pell Grant Adjustment for that course. Pell funds will be returned to the Department of Education. This adjustment of aid may create a new bill on your NWTC student account.