R2T4 Before

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R2T4 Before After HERA

• ILASFAA
• Schaumburg, IL
• March 19, 2007

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Before HERA

• Verification R2T4
• If not completed at withdrawal
• Return all interim disbursements
• R2T4 may only include Unsub PLUS
• Must do revised R2T4 if verification completed
  after calculation complete
• DCL GEN-04-03

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Before HERA

• Inadvertent Overpayment
• Disbursement made to withdrawn student
• Included as aid that could have been disbursed
  in R2T4
• If student eligible for PWD and IO qualifies as
  late disbursement, may be retained
• DCL GEN-04-03

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Before HERA

• Signed Promissory Note
• Must have to include loan as aid that could have
  been disbursed in R2T4 calculation
• Student may sign prom note after withdrawal
• DCL GEN-04-03

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R2T4 Changes

• Effective for students who withdraw on/after July
  1, 2006
• Program Applicability
• Scheduled Clock Hours
• Grant Overpayment Requirements
• Post-Withdrawal Disbursement Counseling
• Return of funds within 45 days

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Program Applicability

• R2T4 requirements now apply to
• ACG
• National SMART Grant
• Grad PLUS
• R2T4 no longer applies to
• LEAP
• SLEAP
• GEAR-UP
• National Student Support Services Grants (SSS)

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Program Applicability
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Scheduled Clock Hours

• Only scheduled hours are used to determine
  percentage of the period completed
• Scheduled hours must be
• Established prior to beginning class date
• Consistent with
• Published materials
• Accrediting and state agency standards

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Clock Hour of Title IV Aid Earned
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Percentage of Title IV Aid Earned Example

• 450 clock hour payment period
• Student completed 60 clock hours
• Student was scheduled to complete 90 clock hours

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Date of Determination

• Schools required to take attendance must
  determine withdrawal no later than 14 days after
  last date of attendance
• Would be earlier if school policy allows less
  than 14 days of unexcused absence

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Grant Overpayment Requirement

• Student must repay portion of original grant
  overpayment that is in excess of ½ of total Title
  IV grant funds that s/he received or could have
  received
• Student does not have to repay grant overpayments
  of 50 or less per program

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Title IV Aid Disbursed and Could Have Been
Disbursed
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Determination of Grant Overpayment
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Final Grant Overpayment Calculation
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Order of Funds Returned by Student

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Post-Withdrawal Disbursement of Loan Funds
Notification

• Institution is required to contact a withdrawn
  student prior to making any Post-Withdrawal
  Disbursement (PWD) of loan funds
• Explain loan obligations
• Confirm loan funds are still wanted by the
  student

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Post-Withdrawal Disbursement of Loan Funds
Notification

• School must document the contact and final
  outcome determination
• No PWD of loan funds may be made without positive
  confirmation from the student (parent if PLUS)
• Includes credit to account for outstanding charges

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Post-Withdrawal Disbursement of Grant Funds
Notification

• PWD of grant funds disbursed directly to student
• Institution must notify student and get
  confirmation that the student still wants the
  grant funds
• PWD of grant funds may be credited to students
  account for outstanding charges without the
  notification process

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PWD Notifications

• All notifications for a PWD (loan or grant funds)
  must be made within 30 days of the determination
  of withdrawal
• Notifications must be in writing
• Email is allowable
• Notifications must allow a minimum of a 14 day
  response time
• Response from student/parent does not have be
  written

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Return of Funds Within 45 Days

• Must return unearned funds within 45 days after
  date of determination
• Refers to funds school is required to repay
• Schools must still meet 30 day requirement to
  notify student of overpayment or PWD

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R2T4 on the Web

• R2T4 on the web software available through FAA
  Access
• Sign up though SAIG enrollment site _at_
• www.fsawebenroll.ed.gov/PMEnroll/index.jsp
• Has tracking and reports functions in order to
  monitor compliance

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Training

• R2T4 web demo available at FAFSA demo site
• http//fafsademo.test.ed.gov/
• MLM training for R2T4 web is available
• http//www.ed.gov/offices/OSFAP/training/specific.
  htmlr2t4software

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Questions??????
jamie.malone_at_ed.gov or 312-730-1528
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Please provide any comments regarding this
training or the trainer to

• Jo Ann Borel,
• Title IV Training Supervisor
• joann.borel_at_ed.gov
• 202-377-3930