Federal Title IV Return of Funds Policy (R2T4)
- The amount of federal financial aid assistance that a student earns is determined on a pro-rata basis. Once a student has completed more than sixty percent (60%) of the payment period, all financial aid assistance is considered to be earned. Federal financial aid assistance includes the Pell Grant, Supplemental Opportunity Grant (SEOG), Direct Student Loans (subsidized and unsubsidized) and PLUS Loans for parents.
- For students who completely withdraw from school before more than sixty percent (60%) of the term has been completed or who do not officially withdraw and receive all failing grades for the term, the Title IV Return Policy goes into affect.
- The withdrawal date is defined as the actual date the student begins the institution's withdrawal process, the student's last date of an academically related activity, or the midpoint of the payment period for a student who leaves without notifying the institution.
- When a student receives federal financial aid in excess of earned aid, the student’s repayment obligation is determined after the school’s share is calculated.
The school returns the lesser of:
- is responsible for all unearned aid that the school is not required to return.
may not have to return the full initial amount because a student does not have to return the full amount of any grant repayment due
pays any loan funds in accordance with the terms of the promissory note, that is, scheduled payments to the holder of the loan over a period of time.
must make arrangements with the school to return the funds for any grant amount the student has to return which is considered to be a grant overpayment.
5. The student is billed for funds the college is required to repay. Accounts not paid within 45 days
are turned over to a collection agency.