When a Student Abandons Ship R2T4

When a Student AbandonsShip – R2T4: 

When a Student Abandons Ship – R2T4 Return of Title IV Funds May 2006 Spring GASFAA Conference Presenters Debbie Bowles, Flint River Technical College Janis Bowles, Columbus State University

To R2T4 or Not?: 

To R2T4 or Not? Title IV Aid Recipient? Withdraw all classes, not drop? Fail to earn passing grades (unofficial withdrawals? - must determine cause) Began Attendance? If not: remove disbursement of grants notify lender of non-attendance for loans

General Philosophy: 

General Philosophy Federal Student Aid funds are awarded to a student under the assumption that the student will attend school for the entire 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. 2005-06 Federal Student Aid Handbook, Vol. 5, Ch 2, 5-14

R2T4 School Deadline: 

R2T4 School Deadline Return unearned funds Currently, within 30 days Effective 7/01/06, within 45 days of the withdrawal determination date

Information Needed: 

Information Needed Date Withdrawal Determined Title IV Aid Amount Disbursed and Amount that Could Have Been Disbursed Withdrawal Date Payment Period Institutional Charges

FYI for this Presentation: 

FYI for this Presentation Assume verification completed before aid disbursed. Examples are credit hour institutions that: Disburse at beginning of term Disburse after 60% point

Collection of Withdrawal InformationDate of Determination: 

Collection of 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 14 days 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

Aid Disbursed/Could beDisbursed: 

Aid Disbursed/Could be Disbursed FWS and Byrd Scholarship - not included Loan – use net amount LEAP – effective 7/1/06, not included

Aid Disbursed/Could beDisbursed: 

Aid Disbursed/Could be Disbursed Promissory Note must be signed before amount can be included Promissory Note not required to be signed before student withdraws

Collection of Withdrawal InformationWithdrawal Date: 

Collection of Withdrawal Information Withdrawal Date 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 an LOA began for a student who does not return from an LOA Illness, accident, grievous personal loss, events beyond the student’s control Academically- related event as documented by the school

More AboutUnofficial Withdrawals: 

More About Unofficial Withdrawals Circumstances Beyond the Student’s Control Withdrawal Date = date school determines student stopped attending due to event Abandoning Ship Withdrawal Date = either mid-point or last day of academically related activity

Basis of Calculation: 

Basis of Calculation For standard term based program, use payment period. For non-term based or non-standard term program, school has choice of performing R2T4 calculation on either basis, payment period or payment of enrollment. Whichever method school chooses, must be consistent.

Counting Days: 

Counting Days Determine number of calendar days* in semester/quarter. Determine number of calendar days * from first day of semester/quarter to withdrawal date. * Omit schedule breaks of 5 or more consecutive calendar days within term (ex., Thanksgiving).

Institutional Charges: 

Institutional Charges Tuition & Fees (application fees are not included) Room & Board (if contracted with school) Other educational expenses paid to school directly

R2T4 Calculation: 

R2T4 Calculation Percentage Earned is equal to – calendar days completed calendar days in period When student has completed MORE than 60%, 100% of Title IV funds are earned Percentages calculated to 4 decimal places and rounded to 3. Ex., .4486 = .449 or 44.9%

R2T4 Calculation: 

R2T4 Calculation Calculation results in 3 possibilities: Amount disbursed = Amount earned - Eureka! No further action necessary! Amount disbursed > Amount earned - Unearned portion must be returned to programs Amount disbursed < Amount earned - Post-withdrawal disbursement

R2T4 Calculation: 

R2T4 Calculation Unearned Title IV Aid Due from School Step 5 & 6 of R2T4 worksheet Unearned Title IV Aid Due from Student Step 7 & 8 of R2T4 worksheet Final repayment amounts that school and student are each responsible for returning may be rounded to nearest dollar.

R2T4 Calculation: 

R2T4 Calculation Student Owes: Title IV Loans – pay lender as originally agreed Title IV Grants - Currently, initial amount of grant overpayment reduced by 50% - Student does not repay $25 or less

R2T4 Calculation: 

R2T4 Calculation (Continued) Deficit Reduction Act changes to grant repayment effective 7/01/06 – Student does not repay if $50 or less Limited to amount by which original grant overpayment amount exceeds half of total TIV Grant funds received by student.

R2T4 Calculation: 

R2T4 Calculation Amount disbursed < Amount earned Post-withdrawal disbursement (PWD) Credit student’s account for direct costs With permission – credit student’s account for indirect educational costs Prior to making loan PWD, Deficit Reduction Act requires school to contact student, explain repayment obligations & confirm loan funds are still required. Must document. If PWD exceeds cost credited – institution must offer PWD within 30 days of date of determination.

PWD Notification: 

PWD Notification Post-withdrawal disbursement (PWD) 14-day Rule School must advise student or parent that he/she has 14 calendar days from date school sent notification to accept PWD. Institutional flexibility beyond 14-day Rule (School’s Option) 120 days to complete PWD

Grant Overpayment Notification: 

Grant Overpayment Notification Notify student within 30 days of Date of Determination that he/she must take Positive Action. Students Have 45-Days to: Fully repay overpayment Make arrangements with school to repay Make arrangements with ED to repay If no Positive Action within 45 days, must report to NSLDS and refer to Borrower Services for collection.

R2T4 Tools: 

R2T4 Tools Web Department of Education Sign-up via SAIG enrollment website https://www.fsawebenroll.ed.gov/PMEnroll Access https://fafsa.ed.gov/faa/faa.htm Marko Technologies, INC. http://www.82marko.com/ Software Download from ED’s FSA download site http://www.fsadownload.ed.gov

R2T4 Consumer Information: 

R2T4 Consumer Information Make available upon request Refund policy Requirements for treatment of Title IV funds when student withdraws Requirements and procedures for officially withdrawing

Questions ???: 

Questions ???