RETURN TO TITLE IV (R2T4) POLICY
Returning Funds for Title IV Aid Recipients Who Withdraw
If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, the amount of Title IV grant or loan assistance earned by the student must be determined. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds must be returned. If the amount disbursed to the student is less than the amount the student earned, and for which the student is otherwise eligible, he or she is eligible to receive a post-withdrawal disbursement of the earned aid that was not received.
The Higher Education Amendments of 1998, as well as the program integrity regulations in 2010, set forth regulations governing the treatment of Title IV funds when a student withdraws from an institution.
There are three types of withdrawals that fall under the return to Title IV (R2T4) federal calculation regulations:
1. Official Withdrawals – student has completed the formal drop process via the Add/Drop Form at the Registrar’s Office in person, mail, fax, email from their Delta webmail or dropped courses through their MyDelta account.
2. Unofficial Withdrawals - If a student begins to attend class, receives federal Title IV aid, but then ceases to attend class without providing official notification to the college, the Federal Government considers this to be an "unofficial withdrawal". For Title IV purposes, the withdrawal date for students who unofficially withdraw is the instructor’s reported last date of attendance. The refund rules for Title IV aid recipients who withdraw are then followed to determine the unearned portion of Title IV aid that must be returned to the appropriate aid program(s).
3. Module Withdrawals – A module is defined as a course or courses in a program that do not span the entire length of the payment period or semester. If a student withdraws from an individual module and does not complete all of the days s/he was initially scheduled to prior to ceasing attendance, a return of Title IV funds calculation must be performed to determine the percentage of financial aid earned. The days in all modules for which the student initially registered are included in the total number of calendar days within the payment period, except for any scheduled breaks of at least five consecutive days. This is true even if the institution cancels a class or drops the student from a module due to lack of prerequisite or for other reasons.
If a student provides written confirmation of his/her intent to attend a future module within the semester, it is not necessary to perform a re-calculation, however the student’s future attendance within the semester must be tracked. If it is determined that the student failed to attend a future module, a recalculation must be performed.
Determining Withdrawal Date: When a student receives an F, W or WI grade, his/her withdrawal date is always the last date of academic attendance as determined by the school from its attendance records.
When a student is considered to have withdrawn, as described above, during a payment period or semester in which they have begun attendance and received federal Title IV financial aid, Delta College is required to determine the amount of earned and unearned Title IV aid. A student is only eligible to retain the percentage of Title IV aid disbursed that is equal to the percentage of the payment period or semester that was completed by the student. The unearned Title IV aid must then be returned to the appropriate federal aid program(s). If more than 60% of the payment period or semester has been completed by the student, no Title IV aid needs to be returned.
According to college policy, when a student withdraws prior to the end of the refund period, all of that semesters Federal Title IV aid will be billed back to the students account. Most non-federal aid will also be billed back to the students account. All Title IV aid will be included in the calculations outlined below. Depending on the results of the calculations, some or all of the federal grant aid may be re-disbursed to the student account.
The following steps will be followed when determining the amount of Title IV aid to be returned upon withdrawal:Determine percentage of payment period or semester completed by student. Divide the number of days attended by the number of days in the payment period or semester. If the calculated percentage exceeds 60%, then the student has earned all Title IV aid for the payment period or semester.
Calculate the amount of earned Title IV aid. Multiply the percentage of the payment period or semester completed by the total Title IV aid disbursed (or could have been disbursed as defined by late disbursement rules).
Determine amount of unearned aid to be returned to Title IV aid program accounts. Subtract the amount of earned federal aid from the total amount of federal aid disbursed. The difference must be returned to the appropriate Title IV aid program(s).
Return of Title IV funds by institution and student:
Delta College will return unearned Title IV aid up to an amount that is equal to the total institutional charges for the payment period or semester multiplied by the percentage of the Title IV aid that was unearned.
The student will be responsible for the balance of unearned Title IV aid. In most cases, this will be the amount of federal aid funds a student received in the form of a refund for non-institutional expenses multiplied by the percentage of Title IV aid that was unearned.
If the student’s portion of aid to be returned is a loan, Delta College will restore the loan funds to the appropriate federal account, with a resulting charge to the students account. The student will be responsible for repaying Delta College for the loan overpayment. The terms of the original loan repayment agreement will apply. If the students portion of aid to be returned is an overpayment of a grant. Delta College will restore the grant funds to the appropriate federal account, with a resulting charge to the students account. The student will be responsible for repaying Delta College for the grant overpayment.
Delta College must offer any post-withdrawal disbursement of loan funds within 30 days of the date it determined the student withdrew. Delta College must always return any unearned Title IV funds it is responsible for returning, within 45 days of the date the school determined the student withdrew.
Delta College must disburse any Title IV grant funds a student is due as part of a post-withdrawal disbursement within 45 days of the date the school determined the student withdrew and disburse any loan funds a student accepts within 180 days of the date the school determined the student withdrew.
Unearned Title IV Funds will be returned to federal programs in the following order:
a. Federal Unsubsidized Stafford Loan
b. Federal Subsidized Stafford Loan
c. Federal PLUS Loan
d. Federal Pell Grant
e. Federal Supplemental Educational Opportunity
f. Iraq and Afghanistan Service Grant
Example of a Title IV Return of Funds calculation for a Title IV recipient who is considered to have withdrawn:
Institutional Charges $5,000
Title IV Loans $2,000
Title IV Grants $1,000
Total Title IV aid $3,000
Student withdrew on 35th day of a 110 day payment period or semester.
Percent Earned 35/110 = 32%
Percent Unearned 100% - 32% = 68%
Amount of Title IV aid unearned $3,000 x 68% = $2,040
Delta College is responsible for returning the lesser of unearned Title IV aid ($2,040 from above) or unearned institutional charges ($5,000 x 68% = $3,400). Delta College will return aid as follows:
· Title IV Loans $2,000 (students remaining loan debt = 0)
· Title IV Grants $ 40
The students responsibility is amount of aid unearned ($2,040) less school responsibility ($2,040), which is zero. You will be responsible for repaying any unearned aid that you were not entitled to receive. You must make arrangements with Delta College's Student Finance Office to repay the unearned funds in full.
Books that are not needed because of dropped/canceled classes should be returned to the Bookstore for credit to your account.
The example shown above does not reflect every student refund situation that may exist. Questions regarding the Return of Title IV Funds Policy for students who withdraw should be addressed to the Delta College Financial Aid Office.
Delta College reserves the right to amend the Return to Title IV (R2T4) Policy at any time in order to comply with Federal regulations.
Return of Funds Fact Sheet (PDF)
Flow Chart – Will I Owe Money Back(PDF)