Session Title

1. Session Title Return of Title IV Funds Basics Cheryl Howerton Millikin University It’s Time to Light the Lights 2016 ILASFAA Annual Conference April 6 – 8, 2016, Hilton, Lisle, IL 2016 ILASFAA Annual Conference April 6 – 8, 2016, Hilton, Lisle, IL

2. What is R2T4? • Return of Title IV Funds (R2T4) - is an acronym used by financial aid professionals • The Return of Title IV funds calculation is completed when a Federal Title IV recipient either: • Officially withdraws; • Unofficially withdraws; • Stops attending per the Institution’s attendance policy 2016 ILASFAA Annual Conference

3. R2T4 • Many schools give students 100% of their aid for the entire semester up front. • When a student withdraws, the institution calculates how long the student was in class and the percentage of time for “earned” aid. • That percentage is then applied to the amount of funds awarded, and the difference is then returned to the appropriate program. 2016 ILASFAA Annual Conference

4. Failure to begin attendance • If a student never commences attendance for the program, the student is not an eligible student for Title IV funds for that period, therefore, R2T4 does not apply. • Instead, the provisions of 34 CFR 668.21 apply: • All Pell, FSEOG, Federal Perkins, Iraq Afghanistan Service Grant, and TEACH funds must be returned • DL funds credited to the student’s account must be returned • The DL loan servicer must be notified when funds were disbursed directly to the student 2016 ILASFAA Annual Conference

5. Withdrawal information – Date of determination • Required to take attendance • When the student begins the official withdrawal process at the school • When student exceeds the institution’s policy on excused absences, not more than one week after the withdrawal date • Not required to take attendance • When the student begins the official withdrawal process at the school • The date the institution becomes aware that the student has ceased attendance 2016 ILASFAA Annual Conference

6. Withdrawal information cont’d • Required to take attendance • The last recorded date of attendance from the institution’s attendance records • Not required to take attendance • Begins the formal withdrawal process • Date student provided intent to withdraw • Midpoint – unofficial withdrawal • The date LOA began for a student who does not return from an LOA • Illness, accident, grievous personal loss, events beyond the student’s control 2016 ILASFAA Annual Conference

7. Calculating R2T4 • For a standard term based program - use payment period. • For a non-term based or non-standard term program - use payment period or period of enrollment. • For a non-term or non-standard term based program - an institution must consistently use either a PP or POE for all students (in a category) in a particular program. 2016 ILASFAA Annual Conference

8. R2T4 calculation • When a student ceases attendance before the scheduled end of the program for which s/he received Title IV • The Institution is required to determine the amount of aid that the student earned and unearned portion. • The denominator of the Return Calculation includes the full # of days used to determine the aid award, absent any institutionally scheduled breaks of 5 or more consecutive days or periods of time that the student was on an approved LOA. 2016 ILASFAA Annual Conference

9. How does the calculation work? • Percentage Earned – is equal to: Calendar days completed ____________________ Calendar days in the period • Note: • Exclude institutionally scheduled breaks of 5 or more consecutive days • When a student has completed more than 60%, 100% of title IV funds are earned. 2016 ILASFAA Annual Conference

10. After calculation • If the amount student earned is: • a. The amount disbursed = the amount earned • No action needed • B. The amount disbursed > the amount earned • The unearned portion must be returned to the programs • C. The amount disbursed < then amount earned • Post –withdrawal disbursement 2016 ILASFAA Annual Conference

11. Unearned Funds • Unearned Title IV funds that are the responsibility of the INSTITUTION • Must be returned to the Title IV programs no later than 45 days after the date of determination that the student withdrew. • Unearned Title IV funds that are the responsibility of the STUDENT • If loan funds, they can be repaid under terms of the promissory note • If grants funds, they are subject to a 50% reduction and the student may make satisfactory arrangements to repay. 2016 ILASFAA Annual Conference

12. Aid that could have been disbursed • Policy – All aid for period, if conditions for late disbursement were met before the student withdrew (668.164(g)(2)) • However, if limitations apply, that aid may not be paid to the student (668.164(g)(4)) 2016 ILASFAA Annual Conference

13. Late Disbursement of aid earned • Aid can only be disbursed if the following conditions are met: • All Student Aid (Including Pell) – ED processed SAR/ISIR with official (not necessarily a valid) EFC • Direct Loan – Institution originated the loan • Perkins/FSEOG – Institution made the award 2016 ILASFAA Annual Conference

14. No Passing Grades; Unoffical Withdraw? • School must have a process for determining if student completed: • At least one passing grade • No passing grade – Institution must document completion of period • Grading Policy that differentiated between Failing, Completed; and Failing, Did Not Complete. • Satisfactory Academic Progress may be affected 2016 ILASFAA Annual Conference

15. Questions? Conact Info: Cheryl Howerton chowerton@millikin.edu Office phone: 217-424-6317 2016 ILASFAA Annual Conference