RETURN OF TITLE IV FUNDS (R2T4) UPDATED: 8/2013

Transcription

1 SECTION 12: RETURN OF TITLE IV FUNDS 12.1 Prcess Overview & Applicability The federal Higher Educatin Act (HEA) f 1965 was amended in 1998 and new regulatins were established with regard t Title IV student financial aid prgrams. Students earn their Title IV federal financial aid by attending class and if they are nt enrlled lng enugh t earn all f their aid, the unearned prtin must be returned t the apprpriate Title IV prgram. Title IV financial aid prgrams include Federal Pell Grant, Academic Cmpetitiveness Grant (ACG), Federal Supplemental Educatinal Opprtunity Grant (SEOG), Federal Wrk-Study (FWS), and Federal Staffrd Lans. Federal Wrk-Study earnings are nt affected by Title IV regulatins cncerning the return f unearned federal financial aid. Only grants and lans are affected by this plicy. The Return f Unearned Title IV Funds Plicy applies if the student withdraws frm, changes enrllment status frm credit t audit r ceases attending all classes befre cmpleting sixty percent f the present term enrlled. Students wh are granted Incmplete grades and d nt finish in accrdance with schl plicy may als be subject t a Title IV Return calculatin. Withdrawing frm all classes prvides ntificatin t the Registrar s Office f intent t withdraw frm Saint Martin s University. Cmpletely withdrawing frm, auditing r ceasing t attend may result in financial aid repayment. Withdrawing may als affect future financial aid eligibility. A list f financial aid prgrams subject t the return f Title IV funds requirements include: Pell Grant Academic Cmpetiveness Grant Natinal SMART Grant FSEOG TEACH Grant Unsubsidized Staffrd Lan Subsidized Staffrd Lan Perkins Lan Direct PLUS Lan (Parent) Direct PLUS Lan (Graduate Student) A list f Washingtn State financial aid prgrams subject t a calculatin return in the event f a fficial r unfficial withdrawal include: Washingtn State Need Grant Cllege Bund Schlarship Passprt t Cllege Schlarship Sectin 1 Official vs Un-Official Withdrawal Official Withdrawal Student has submitted an fficial withdrawal frm t the Registrar s Office t ntify schl f fficial intent t withdrawal. Or, student has submitted written ntice indicating intent t withdrawal (Medical r ther reasns included) Student Financial Services is alerted f fficial withdrawal thrugh a daily enrllment changes reprt. If student withdrew during first 10 days f the term, the fficial date f withdrawal will be determined as the last day f academic activity. If student withdrew fllwing the first 10 days f the term, the fficial date f withdrawal will be determined as the day the Registrar s Office prcessed the ntice t withdraw. Saint Martin s University Student Financial Services Plicies and Prcedures Page 1

2 Un-Official Withdrawal A student is cnsidered t be an unfficial withdrawal in the event they receive all XF Grades at the end f the semester. Instructrs are encuraged t prvide a last date f academic activity. Hwever, SMU will calculate the percentage f financial aid earned based ff f the Department f Educatin standard f 50%. In the event a student receives a cmbinatin f XF and F Grades, the Student Financial Services Office will wrk with the Registrar s Office t cnfirm that F Grades were earned. In the event the F Grades were earned, student will nt be treated as an unfficial withdrawal. Sectin 12.2 Mdule Classes Definitin: Mdule classes are defined as any class that des nt span the entire length f the semester. These classes may als be referred t as part f term, late starting r shrt term classes. Any student wh is enrlled in at least ne class that is less than the length f the term is classified fr that term as a mdule student. This means that even if the student enrlls in and passes a mdule class r classes, then drps, audits r stps attending remaining full term classes, he/she may be subject t a Title IV Return calculatin if the student withdraws befre 60% f the term has been cmpleted. Any Student wh cmpletes ne mdular curse and enrlls in a subsequent term, which they then withdraw frm, will be subject t a Title IV Return Calculatin. Even if the student enrlled in at least half time during the first mdule class, they are still classified as withdrawn if they initiated the secnd mdule. Students wh withdraw after cmpleting 60% f the semester will be cnsidered as have earning 100% f their aid eligibility fr that semester. Sectin 12.3 Prcessing a Title IV Return Step 1: Determine the student s withdrawal date using the flw chart Official date f withdrawal is cnfirmed with Registrar and reprted t the Clearinghuse Step 2: Using the nline R2T4 Calculatr determine the fllwing: 1. Percentage f aid earned 2. Amunt f aid Earned 3. Amunt f Unearned Aid 4. The amunt the schl and students share f the unearned aid Step 3: Directr f Financial Aid Ntifies lan prcessr t revise student s award t reflect earned aid. Step 4: Award revisins will be psted t student s accunt. Step 5: Unearned Aid and Disbursed Aid If disbursed aid exceeds earned aid: 1. Determine the amunt f unearned aid by subtracting earned aid frm disbursed aid 2. Distribute the respnsibility fr returning unearned aid between the schl and the student 3. If unearned funds must be returned, allcate unearned aid t prgrams frm which student was funded 4. Return the institutin s share and any funds repaid by the student r refer the verpayment t ED Saint Martin s University Student Financial Services Plicies and Prcedures Page 2

3 If earned aid exceeds disbursed aid: 1. Determine the amunt f a pst-withdrawal disbursement by subtracting disbursed aid frm earned aid 2. If a pst-withdrawal disbursement is due, determine the surces frm which it will be funded and credit any grant prtin twards allwable and/r authrized unpaid charges. 3. Offer and btain the student s, r parent s in the case f a parent PLUS, authrizatin t credit the lan prtin f the past-withdrawal disbursement twards allwable and/r unpaid charges 4. Directly disburse t the student any amunt f a pst-withdrawal disbursement f grant funds which is nt credited tward allwable and/r authrized unpaid charges 5. Offer student (r parent PLUS brrwer) any prtin f the pst- withdrawal disbursement f lan funds nt credited twards unpaid charges and make the pst-withdrawal disbursement if the ffer is accepted Sectin 12.4 Students nt required having Title IV funds Returned Students nt eligible fr federal r state aid (SAP Denials, Verificatin Incmplete, etc.) Other examples include: Student nly awarded Federal Wrk-Study Student drpped sme classes but did nt cmpletely withdraw Student never began attendance in any classes Dcumentatin f Return Calculatin Each calculatin is dcumented by placing a cpy f the cmpleted wrksheet in the student s file, in the database under custm data and the cmments sectin, and in ED s return f Title IV funds sftware database. The fllwing dcumentatin will be placed in each student s file wh had a return calculatin perfrmed n them: 1. Ntice f Return f Title IV Funds t Student 2. Return f Title IV Funds Calculatin 3. Original Award Letter 4. Cpy f Student Accunt Statement 5. Print ut f NSLDS Enrllment Verificatin - Shwing students updated withdrawal date 6. Dcumentatin f return f State Funds, if applicable 7. Updated Print ut f Student COD statements. 8. Other dcumentatin Pst-Withdrawal Disbursements In the event the ttal amunt f earned aid is less than the amunt f aid received, the schl is required t ffer the student a pst-withdrawal disbursement within 45 days f prcessing the return calculatin. The Directr f Financial Aid will ntify the student f the pst-withdrawal in writing. If the student fails t respnd, they will be ineligible fr the pst-withdrawal disbursement. Prcedures Pst-withdrawal disbursement ntificatins are lgged in the database under the cmmunicatins tab. The date that it is sent ut will be the date it is classified as received. Saint Martin s University Student Financial Services Plicies and Prcedures Page 3

4 If the student ntifies Student Financial Services that they wish t prceed with the pstwithdrawal disbursement, the Directr f Financial Aid will ntify the Lan prcessr t release the lan funds t the student s accunt. SMU is nt required t receive acceptance cnfirmatin frm a student wh is eligible t receive a pst-withdrawal disbursement f a Pell Grant. In the event a student is eligible fr a pst-withdrawal disbursement f a Pell Grant, the funds will autmatically be applied t the students accunt. The pririties fr disbursement (e.g., frm grants first, paid t utstanding institutinal charges befre being paid directly t student, etc.) Tuitin and mandatry fees will autmatically be deducted frm the earned aid prir t releasing additinal funds t the student in the frm f a refund. Timelines fr making the pst-withdrawal disbursement Pst-withdrawal disbursements will be prcessed within the next disbursement cycle fllwing after the student has ntified SFS that they wuld like t accept the award and after they have been prcessed Returning Unearned Funds Prcedures The Student will be ntified in writing fllwing the fficial calculatin f return f funds. The Student Financial Services ffice in cmbinatin with the Finance Office will be respnsible fr returning unearned financial aid funds. The schl will return all required aid t the Department f Educatin and cllect any unearned aid frm the student. Time lines and cnditins fr: Reprting enrllment status change t NSLDS: 30 days frm date f status update Returning the schl s prtin f unearned funds: Within 45 days f fficially determining the student withdrew Ntifying a student f any Title IV grant verpayment wed: Within 45 days f fficially determining the student withdrew Reprting any verpayment t NSLDS if the student has neither repaid nr made satisfactry repayment arrangements: Within 30 days f fficially determining the student withdrew Overpayment Reslutin Saint Martin s University will return funds n behalf f a student wh wes an verpayment and cnsider the returned funds as the student s debt t the institutin. In the event this ccurs, the student will be ntified that they need t set up a payment plan with Saint Martin s University r pay the balance in full. Failure t pay balance may result in an in-eligibility fr future financial aid and a hld n fficial transcripts. In the event a student fails t make payment arrangements, Saint Martin s University will reprt the ver-payment t NSLDS. The student will have 45 days t set up payment arrangements befre they will be reprted t NSLDS Return f State Funds Calculatin State Grant recipients, wh fficially r unfficially withdraw frm Saint Martin s University, r wh are expelled in any semester; must repay state grants funding n a pr-rated basis. Saint Martin s University Student Financial Services Plicies and Prcedures Page 4

5 State Grants subject t repayment include the fllwing: Cllege Bund Schlarship Washingtn State Need Grant Passprt fr Fster Yuth Schlarship If the last date f attendance ccurs after 50% f the term, the state grant award is cnsidered 100% earned and n state grant repayment is due. If the last date f attendance ccurs prir t r at 50% f the term, the Student Financial Services will calculate the percentage earned and adjust the award based upn the state repayment calculatr. The state repayment calculatr determines the student s earned eligibility based upn the fllwing calculatin: 1. The percentage f state grant earned is calculated by dividing days in attendance by calendar days in the semester. 2. The percentage f state grant earned is subtracted frm 100%; this equals the amunt f unearned state grant. 3. The percentage f unearned state grant is multiplied by the ttal received grant amunt fr the applicable semester. 4. The unearned amunt calculated in step three is multiplied by 50% t determine the state grant repayment due. In the event a student is determined t be an unfficial withdrawal (n verified last date f attendance) Student Financial Services will repay 50% f the State Grant amunt with nw additinal adjustments. Saint Martin s University Student Financial Services Plicies and Prcedures Page 5