It’s Time to Light the Lights 2016 ILASFAA Annual Conference 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

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

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

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

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

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

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

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

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

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

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

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

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

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

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