Return of TitleIV Funds

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Return of Title-IV Funds
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Return of Title-IV Funds

• Considerations
• Withdrawal date.
• Payment period or period of enrollment.
• Amount of Title-IV aid disbursed or that could
  have been disbursed.
• Verification rules.
• Amount of Title-IV aid earned.

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Return of Title-IV Funds

• Considerations
• If applicable
• Post-withdrawal disbursements.
• Amount of aid the school must return.
• Amount of aid the student must return.
• The order in which funds must be returned.
• The deadlines for returning funds.

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Return of Title-IV Funds

• Withdrawal date.
• Official withdrawal.
• Date the student began the withdrawal process.
• Unofficial withdrawal.
• Last date of attendance.
• Rescinding notification of intent to withdraw.
• Student must submit a written statement to
  school.
• Leave-of-absence provisions.
• Students temporarily sitting out of classes, with
  the schools approval, for up to 180 days in a
  12-month period are not considered withdrawn.

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Return of Title-IV Funds

• Payment period.
• Term-based schools.
• Non-term-based schools, depends on program.
• Period of enrollment.
• Non-term-based schools, depends on program.

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Return of Title-IV Funds

• Amount of disbursed aid.
• Net amount of Stafford, Perkins and PLUS loan
  funds.
• Pell grant.
• LEAP funds if the grant contains federal monies.
• Included only if state-grant agency has told the
  institution LEAP is included in the state grant.
• If the grant agency informs the school, it must
  also indicate
• Percentage of LEAP in a specific students state
  grant.
• Percentage of LEAP in the schools state-grant
  allotment.
• FWS is always excluded.

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Return of Title-IV Funds

• Aid that could have been disbursed.
• A second or subsequent disbursement counts if
  institution would not have been prohibited from
  disbursing on or before the date student
  withdrew.
• Processed SAR/ISIR with an official EFC.
• Certified FFEL or Direct loans.
• FSEOG or Perkins loans awarded to the student.

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Return of Title-IV Funds

• Aid that could have been disbursed.
• New guidance (GEN-04-03)
• Inadvertent overpayments.
• Late Pell-grant disbursements.
• Second or subsequent FFEL disbursements.
• Subsequent Pell-grant disbursements.
• 30-day disbursement rule.
• If conditions for late disbursement are met.

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Return of Title-IV Funds

• Aid that could have been disbursed.
• Verification rules.
• Document requirements.

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Return of Title-IV Funds

• Amount of Title-IV aid earned.
• Withdrawal up to the 60-percent point (payment
  period or period of enrollment) indicates
  unearned aid.
• Withdrawal after the 60-percent point (payment
  period or period of enrollment) indicates all
  Title-IV aid is earned.
• Withdrawal after the 60-percent point still
  requires a return-of-Title-IV-funds calculation
  to see if a post-withdrawal disbursement is
  required.

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Post-Withdrawal Disbursements

• Required when a student earns more aid than was
  disbursed.
• All or a portion of the post-withdrawal
  disbursement may be used to cover outstanding
  charges on a students account.
• Students authorization required to cover charges
  other than tuition, fees, room and board.
• See the chart in your manual showing the
  differences between a late disbursement and a
  post-withdrawal disbursement.

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Return of Title-IV Funds

• Other refund policies
• R2T4 must be done prior to calculating
  institutional refunds.

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Return of Title-IV Funds

• Return order.
• Unsubsidized FFELP Stafford loans.
• Subsidized FFELP Stafford loans.
• Unsubsidized Direct Stafford loans.
• Subsidized Direct Stafford loans.
• Federal Perkins loans.
• FFELP PLUS loans.
• Direct PLUS loans.
• Federal Pell grant.
• FSEOG (federal portion only).
• Other Title-IV programs.

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Return of Title-IV Funds

• The amount schools must return.
• The amount of Title-IV funds that the student
  does not earn or
• The amount of institutional charges that the
  student incurred for the payment period or period
  of enrollment multiplied by the percentage of
  funds that was not earned.

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Return of Title-IV Funds

• The amount students (or parents) must return.
• If total original amount of overpayment the
  student is responsible for is less than 25,
  overpayment does not exist.
• If institution returns students overpayment, the
  50-percent reduction still applies.
• Grant overpayments.
• Unearned loan funds.

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Return of Title-IV Funds

• Important R2T4 deadlines.
• See page 13 in your manual.

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Return of Title IV Funds

• Calculation processing tools.
• Worksheets.
• Treatment of Title IV Funds When a Student
  Withdrawals from a Credit Hour Program.
• Treatment of Title IV Funds When a Student
  Withdrawals from a Clock Hour Program.

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Return of Title IV Funds

• Calculation-processing tools.
• Software.
• Return of Title IV Funds for Windows Version
  1.1.2
• www.sfadownload.ed.gov.
• Return of Title IV Funds on the Web
• Available from FAA Access to CPS Online Web site
• fafsa.ed.gov/faa/faa.htm.

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Additional Information

• Credit balances.
• Do not release credit balance to student.
• Schools must hold these funds even if doing so
  exceeds the 14-day requirement.
• Credit balance considered disbursed aid.
• Determine if credit-balance changes based on
  schools refund policy or R2T4 calculation.

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Additional Information

• Credit balances.
• Balance must first pay grant overpayment.
• Pay authorized charges at the institution.
• Reduce the students Title IV loan debt, with the
  students authorization.
• Lastly, return to student.

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Additional Information

• Charges not assessed.
• R2T4 requirements apply even if no charges are
  assessed to the student.
• When student never actually began attendance,
  34 CFR 668.21 applies.
• Requires institution return all funds to the
  Title IV programs.
• Institutional charges used in calculation are
  those initially assessed.
• Unless adjusted prior to withdrawal.
• Treatment of tuition and fee waivers must be
  consistent with treatment for cost of attendance.

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Additional Information

• Term-based programs using modules.
• Characteristics of modular programs.
• Page 16 of your manual.
• Four principles to apply R2T4 provisions.
• Page 17 of your manual.
• Impact on aid based on change in enrollment
  status to less than half time.
• FFELP and direct-loan funds that were previously
  received are not affected.
• Pell grant and campus-based aid award
  recalculation required if eligibility was based
  on credit hours.

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Additional Information

• Notification requirements.
• See page 18 of your manual.

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Return of Title-IV Funds

• Regulatory background.
• Dear Colleague Letter GEN-04-03
• Final Regulations published November 1, 2002
• Dear Colleague Letter GEN-00-24
• Final Regulations published November 1, 1999
• Effective July 1, 2000
• Section 484 B of the HEA, enacted October 7, 1998
  as part of the Higher Education Amendments of
  1998.

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Questions?
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Case Study
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Return of Title-IV Funds