6.6.1sr3 - SRTC Procedure: Return to Title IV

Title IV funds are awarded to a student under the assumption that the student will attend school for the entire enrollment period for which the assistance is awarded. When a student withdraws, the student may no longer be eligible for the full amount of Title IV funds that the student was originally scheduled to receive.

The Financial Aid Department will recalculate enrollment period award amounts of the Title IV grant funds for students who totally withdraw, officially or unofficially, from school. If a student stops attending, the amount of Title IV aid the student did not earn must be calculated. The percentage of aid earned is derived from the number of calendar days the student completed divided by the number of calendar days in the enrollment period. In the event that the withdrawal is discovered before funds are disbursed to the student, the school will simply reduce the student’s disbursement. If funds were disbursed to the student prior to the withdrawal, the student will be billed for the amount of funds over awarded. If the amount disbursed to the student is less than the amount the student earned, the student may be eligible to receive a post-withdrawal disbursement of the earned aid that was not received. Students, who complete the enrollment period with grades of all F’s or any combination of all withdrawals and F’s, will be considered for a Return to Title IV (R2T4) calculation based on the last date of attendance recorded for those courses.

Once Southern Regional Technical College (SRTC) determines that the student has officially or unofficially withdrawn, an R2T4 calculation will be completed in BANNER within 30 days and award updates will be reported to the Department of Education through the COD invoicing process. Should the student’s award amounts change, the student will receive an updated award notification reflecting the award reduction. Once a R2T4 calculation is completed, it is possible that the revised financial aid award may not cover all institutional charge due to the College; at which point, the charges become the student’s responsibility to pay. Institutional charges are assessed in accordance with the SRTC Procedure: Refunds. The student will receive a bill from the College should the reduction in aid generate a balance on the student’s account. The Business Office will promptly return the excess funds to the appropriate program within time frames established by the Department of Education. Funds will be returned to the Department of Education in the following order: Federal Pell Grant, then Federal Supplemental Educational Opportunity Grant (SEOG). If the student fails to return the funds to the College in 45 days, the school may report the overpayment via National Student Loan Data System for Students (NSLDS). Any student who owes a balance due to a financial aid over award will be ineligible for further financial aid until he/she has repaid the funds.

Example:
The enrollment period consists of 105 calendar days. The student withdraws on the 42 calendar day of the enrollment period. Therefore, the student completed 42 of 105 days, or 40% of the enrollment period. If the student was awarded federal funds of $900 for the enrollment period, the student would have earned 40% of the award or $360. In this case, had funds already been disbursed at $900, the student would have received an overpayment of $540. The overpaid funds would need to be returned to the College by the student. The federal regulations provide a provision for protection allowance for the student, so the student’s portion to return may be less than unearned amount in some instances.

Additionally, students who attend through the 60% point of the enrollment period generally have earned all their Title IV funds..

Responsibility:
The Executive Director of Financial Aid has the overall responsibility for ensuring this procedure is implemented.

References:
Federal Student Aid Handbook - IFAP

Adopted: 10-20-2014
Implemented: 07-01-2015
Revised: 11-10-2015