Return of Unearned Financial Aid
REFUNDS & REPAYMENTS FOR TITLE IV FINANCIAL AID RECIPIENT
A Return to Title IV (R2T4) calculation is required when a student does not attend all of the days the student was scheduled to complete within a payment period or period of enrollment. A student who does not complete his/her payment period is considered to have withdrawn whether or not any credits were earned. The R2T4 calculation is done to determine the amount of aid earned by the student.
Federal regulations require institutions to calculate the amount of federal financial aid a student earned if the student withdraws from all of his/her coursework in any given semester/term. In addition, at the end of a semester/term, if a student has not successfully completed any coursework, the institution must confirm that the student did attend the courses for which the student received financial aid.
When a student who receives a net disbursement of Title IV funds then ceases attendance prior to the 60 percent point in the payment period, CF will determine whether the student must repay a portion of the net disbursement. A statutory prorated schedule will be used to determine the percentage of Title IV funds the student has earned at the time of withdrawal. Federal Work Study funds are excluded from the calculation.
If a student withdraws after completing more than 60 percent of the semester/term, all Title IV aid is considered earned and the student does not owe a repayment. However, withdrawing may affect a student’s satisfactory academic progress and eligibility for future financial aid.
Minimester Courses and Return to Title IV
A student who withdraws from a minimester course (A term or B term) within the semester must still be attending another class or is considered to be withdrawn, even if registered for future classes starting in the same semester. The student must – at the time of withdrawal from a minimester class, if not attending another class – provide documentation to the college indicating his/her intent to attend a future class within that semester. Otherwise the student is considered withdrawn and a Return to Title IV calculation must be completed. If the student provides documentation but doesn’t actually attend that future class, a Return to Title IV calculation is still required.
Return to Title IV Calculation
- The amount of aid that must be returned is calculated using the last date of attendance as documented by faculty records (not student self-certification). The institution will determine the total number of calendar days completed in the payment period and the number of days the student was scheduled to complete in the payment period. Days attended are divided by the number of days scheduled to complete to determine that percentage completed. To determine the amount of aid earned, the percentage completed is multiplied by the total aid for which the student is eligible.
- The institution will then determine the total institutional charges (tuition, fees, and books and supplies charged at the bookstore) and multiply the total institutional charges by the percentage determined in step 1 above in order to calculate the earned charges
The institution must return the amount of unearned aid, up to the maximum received, to each of the Title IV programs in the following order:
- Unsubsidized Federal Direct Loan
- Subsidized Federal Direct Loan
- Federal Direct PLUS Loan
- Federal Pell Grant
- Academic Competitiveness Grant
- Federal Supplemental Educational Opportunity Grant
- The school determines the amount of unearned aid the student is responsible for returning by subtracting the amount returned by the school from the total amount which is unearned.
Once the institution determines the amount the student owes, CF will notify the student via USPS mail. Funds that must be returned by the student to the loan programs can be paid in accordance with the normal loan repayment terms. For grant funds that must be repaid, the amount due from the student is limited to half of the total Title IV grant funds received by the student. A student has 45 days to make repayment and does not have to repay a grant overpayment of $50 or less. Unpaid balances will be reported to the National Student Loan Data System (NSLDS), and reported to the U. S. Department of Education for collection. A student who owes an overpayment will be ineligible for further Title IV aid at any institution.
Note: This policy is separate from the institutional refund policy. The student is responsible for paying any balances due to CF.
Detailed information on repayments is available in the Office of Financial Aid. These policies are subject to change by action of the United States Department of Education.
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