Return of Federal Student Aid (Title IV Funds)

Circumstances may necessitate withdrawal from UTI/NASCAR Tech/MMI. A student who received or is eligible to receive federal financial aid funds provided certain criteria are met and subsequently officially or unofficially withdraws is subject to a Return of Title IV (R2T4) Calculation as required by federal regulations. The requirements for federal financial aid when a student withdraws are separate from the Institutional Refund Policy and any applicable State Refund Policy. Therefore, a student may still owe funds to the school for unpaid Institutional charges after application of the R2T4 calculation.

Federal regulations specify how the school must determine the amount of federal financial aid earned when a student withdraws from enrollment. The percentage earned applies to Title IV financial aid that has been or could have been disbursed directly to the student or on their behalf to the Institution. The percentage of federal financial aid a student earned in a payment period is calculated as follows:

  • Total Number of Calendar Days Completed in Enrollment Period ÷ Total Number of Calendar Days in Enrollment Period = Percent Earned

The amount of federal financial aid a student earned is determined on a pro‑rata basis up to the 60% point. That is, a student who completes more than 60% of the enrollment period will earn 100% of the Title IV disbursed (or that could have been disbursed) for that enrollment period.

UTI/NASCAR Tech/MMI will notify the student of any eligible post‑withdrawal disbursement within 30 days after the date the school determines the student has withdrawn.

Any required return of funds will be made to the federal financial aid programs no later than 45 days after the date UTI/NASCAR Tech/MMI determines that the student has withdrawn. The U.S. Department of Education specifies the order of return to the federal financial aid programs. UTI/NASCAR Tech/MMI will return unearned funds to the federal financial aid programs in the order specified by regulation as follows:

  • Unsubsidized Direct Loan
  • Subsidized Direct Loan
  • Federal PLUS Loan
  • Federal Pell Grant or IASG
  • Federal SEOG