The U.S. Department of Education maintains a “Return to Title IV Funds” (R2TIV) policy for students who receive federal financial aid and withdraw from school before completing sixty percent (60%) of the payment period or period of enrollment. This policy is separate from the institutional tuition refund policy described in this catalog. The federal policy defines the proportion of Title IV funds that the student is qualified to receive that can be applied to pay institutional charges. A brief description of the calculation follows. For further information, or a more detailed version of the calculation, please see the Financial Aid Office.
1. Determine the Student’s withdrawal date.
2. Calculate % of Title IV aid earned by the Student
Number of clock hours scheduled to be complete = Percentage of Title IV Funds Earned*
Number of clock hours in the payment period
This ratio is multiplied by the Title IV aid disbursed plus the Title IV aid that could have been disbursed to equal the Title IV aid earned. Total disbursed minus total earned equals the federal funds that must be returned to the funding program.
The federal policy for “Return of Title IV Funds” defines that a student who has attended up through the 60% point in each payment period or period of enrollment has fully earned the Title IV funds for the payment period/period of enrollment.
3. Calculate amount of Title IV aid earned by the Student
This ratio is multiplied by the total Title IV aid disbursed (including aid that could have been disbursed) to equal the amount of the Title IV aid earned.
4. Determine if post withdrawal disbursement is due or it Title IV aid must be returned.
5. Calculate amount of unearned Title IV aid due from the School.
6. Determine return of Title IV funds by the School.
Any funds that are required to be returned by the school will be returned within 45 days of the date of determination that a student has withdrawn.
Funds will be returned in the following order:
- Unsubsidized Stafford Loans;
- Subsidized Stafford Loans;
- PLUS Loans;
- FSEOG.
7. Calculate initial amount of unearned Title IV due from the Student.
Students will be informed of any amounts of Financial Assistance that they need to return. On an individual basis, the student will receive instructions on returning the funds with a copy of the calculation. Students not making their portion of the return of unearned funds may be ineligible for Federal Student Assistance funds in the future.
8.Determine return of funds by the Student.
9. Allocation of Returned funds by Program.
The “Payment Period” is the period of time for which a Title IV distribution has been authorized.
Students will be notified of any refunds due to a lender on their behalf through the mailed exit interview material. This material will include a copy of both the R2TIV calculation and the schools refund calculation.
Refunds to any of the Title IV programs will be paid within 45 days from the date of determination.
Further information is available at the Gurnick Academy of Financial Assistance Office or at the USDOE website www.FederalStudentAid.ed.gov. |