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Financial Aid Policies

Financial Aid Policies & Eligibility Rules

To maintain financial aid eligibility at Mountain Gateway Community College, students must comply with federal, state, and institutional guidelines.

1. Satisfactory Academic Progress (SAP)

Federal law requires MGCC to monitor academic progress. To remain eligible for financial aid, you must meet all three of the following SAP criteria across all enrollment periods:

⚠️ Warning: Course withdrawals (grades of W) are the #1 cause of students losing financial aid eligibility.

A. Completion Rate (67% Rule)

You must successfully complete at least 67% of all cumulative credits attempted.

  • Passing Grades (Counted as Completed): A, B, C, D, S, P
  • Unsuccessful Grades (Hurt Completion Rate): F, R, U, X, W

B. Cumulative GPA Requirement

You must maintain the minimum cumulative Grade Point Average (GPA) based on your total attempted credit hours:

Credit Hours Attempted Minimum Cumulative GPA Expected
1 – 15 credits 1.50
16 – 30 credits 1.75
31+ credits 2.00

Note: For repeated courses, only the attempt with the highest grade counts toward your cumulative GPA.

C. Maximum Timeframe (150% Rule)

You must complete your program within 150% of the published credit hours required for graduation.

Max Allowed Credits = Required Program Credits x $1.50

  • Example: If your associate degree requires 66 credit hours, your maximum attempt limit is 99 credit hours ($66 \times 1.5 = 99$).

2. Course Eligibility & Repeated Coursework

  • Developmental Courses: Federal aid will cover up to a maximum of 30 credit hours of developmental coursework. Additional developmental credits must be paid out-of-pocket.
  • Repeated Classes: Financial aid will cover repeated courses until passed, plus one additional attempt to improve a passing grade.
  • Incomplete Grades ("I"): Financial aid eligibility cannot be finalized if you have outstanding incomplete ("I") grades from a prior term.
  • Ineligible Courses: Audited courses, non-credit courses, and Basic Skills (BSK) courses are not eligible for financial aid and are excluded from your aid-eligible credit count.

3. Attendance & Class Drops

Financial aid is awarded based on active course participation.

  • Class Drops: If you must drop a course, you should drop it in myMGCC during the official tuition refund period to avoid financial penalties.
  • Non-Attendance: If you stop attending classes without officially dropping during the refund period, your financial aid will be recalculated. You will be required to repay any unearned aid disbursed for tuition, fees, or bookstore charges to MGCC and the U.S. Department of Education.

4. Withdrawal & Federal Return to Title IV (R2T4) Policy

If you withdraw, drop out, are dismissed, or take an official leave of absence before completing 60% of a payment period or semester, federal regulations require MGCC to recalculate your financial aid eligibility.

Unearned Aid Recalculation

Aid is earned on a daily prorated basis based on the number of calendar days attended prior to your official withdrawal date:

 

  • Institutional Return: If you earn less aid than was disbursed, MGCC must return the unearned portion to the federal government within 45 days. Returning funds may leave you with an unpaid tuition balance owed directly to MGCC.
  • Post-Withdrawal Disbursement: If you earned more aid than was disbursed prior to withdrawing, MGCC will issue a post-withdrawal disbursement within 120 days.

Priority Order of Refund Returns

When financial aid funds are returned, they are allocated in the following strict order:

  1. Unsubsidized Federal Direct Stafford Loans

  2. Subsidized Federal Direct Stafford Loans

  3. Direct Parent PLUS Loans

  4. Federal Pell Grants

  5. Federal Supplemental Educational Opportunity Grants (FSEOG)

  6. State Grants (COMA / VGAP)

  7. Virginia G3 Grant

  8. Other Title IV Financial Assistance

5. Bookstore Charging Policy

Eligible financial aid recipients with remaining grant funds (after tuition and fees are covered) may charge required textbooks and supplies at the online MGCC Bookstore.

  • Charging Window: Available from one week prior to the start of the semester through the last date to drop with a refund.

Approved vs. Prohibited Bookstore Purchases

Approved Items Prohibited Items
Required or suggested textbooks and lab manuals Apparel, clothing, and gift items
General supplies (pens, notebooks, paper, binders) Electronic devices (cell phones, smartwatches, printers)
Nursing uniforms, BP cuffs, stethoscopes, lanyards Peripherals (chargers, power cords, batteries, headphones)*
Calculators & USB drives (limit 1 per aid year) Prepaid gift cards, food, beverage, and personal care items

*Note: Earbuds, calculators, and flash drives are limited to a maximum of one purchase per aid year.

6. Additional Student Responsibilities

  • Reporting Outside Assistance: You must notify the Financial Aid Office if you receive outside scholarships, grants, employer tuition aid, or private loans. Outside aid may require an adjustment to your MGCC offer package to prevent over-award limits.
  • Taxable Financial Aid: If your total grant and scholarship awards exceed the total cost of your qualified tuition, fees, and books, the excess amount may be considered taxable income by the IRS. Consult a tax professional for guidance.
  • Funding Availability: All financial aid offers are tentative and contingent upon annual federal and state legislative appropriations and actual funding receipts. MGCC reserves the right to adjust or cancel offers due to changes in funding or academic eligibility.