Loan Refunds, Forgiveness & Exit Counseling

Financial Aid Refund Procedure

If a student receiving financial aid is eligible for a refund, that refund is returned to the Federal Financial Aid Program. If the amount of the refund exceeds the total amount of aid, the excess will be returned to the student. Federal regulations require that any student who has received a loan while attending NCNM and who leaves the college for any reason, including official leaves of absence, must participate in a loan exit counseling.

Return of Federal Title IV Funds

NCNM is required to recalculate federal financial aid eligibility for students who withdraw, drop out, are dismissed, or take a leave of absence prior to completing at least 60 percent of an academic quarter. Recalculation is done from the actual date the student begins the institution’s withdrawal process. For students who leave without notifying the institution, calculations will be made from the last day of recorded attendance or the midpoint of the quarter. Recalculation is based on formulas that determine the amount of aid earned and the amount of aid to be returned. The formulas used for recalculation can be obtained from NCNM’s Financial Aid Office. Federal refund calculations are completely independent of NCNM’s tuition refund policies. Federal Title IV Funds are always returned in the order mandated by the U.S. Department of Education. For graduate–level students attending NCNM the order is:

  1. Unsubsidized Stafford Loan
  2. Graduate PLUS Loan

Note: The Federal Title IV refund calculations only apply to withdrawals from all classes. However, if a student changes track and if there is an adjustment made to her/his tuition charge, the Financial Aid Office may recalculate the student’s Cost of Attendance Budget to see if her/his aid eligibility has changed.

Loan Forgiveness

Under certain circumstances, the federal government will cancel all or part of an educational loan. This practice is called Loan Forgiveness. To qualify, you must:

  • Perform volunteer work
  • Perform military service
  • Teach or practice medicine in certain types of communities
  • Meet other criteria specified by the forgiveness program

Find out more about loan forgiveness programs

Exit Counseling

Student loans, unlike grants and work–study, are borrowed money that must be repaid, with interest, just like car loans and home mortgages. You cannot have these loans canceled because you didn’t like the education you received, didn’t get a job in your field of study or because you’re having financial difficulty. Loans are legal obligations that you’ll have to repay.

Exit Counseling is required before you withdraw, graduate, or drop below half-time attendance (even if you plan to transfer to another school). This counseling helps you understand your rights and responsibilities as a student loan borrower and provides useful tips and information to help you manage your loans.

Students departing from NCNM or ceasing to enroll at least half–time must complete online exit counseling.