Financial aid recipients who withdraw completely from all classes will have a Return of Title IV (R2T4) funds calculation completed. This calculation determines the student's percentage of completion at the time of withdrawal and the amount of institutional and/or Title IV debt owed by a student.

The following guidelines and procedures reflect federal policy. If at any time these guidelines and procedures conflict with federal policy, then the colleges are to follow federal policy.

I. Definitions

  1. Institutional Debt:
    1. An overpayment that must be repaid by the college:
      1. the college incorrectly disbursed aid to the student, or
      2. the college must repay a portion of the institutional charges as a result of the student withdrawing from all course at the college.
  2. Title IV Debt:
    1. An overpayment that must be repaid by the student to the Department of Education because:
      1. The student is enrolled in fewer units than on the date Title IV aid was disbursed to the student, prior or on the recalculation date.
      2. The student must repay a portion of the Title IV funds as a result of the student withdrawing from all classes at the college.
      3. The student provided incorrect data to the college resulting in a payment that the student was not entitled to receive.

II. Reporting/Processing Timelines

  1. The District Office will provide the colleges with a list of all students who received Title IV aid at the college and who are no longer enrolled in classes every two weeks (R2T4 Report).
  2. The colleges will process each student on the report and identify all students who the college is required to pay a portion of the institutional charges to the Department of Education within 30 days of the report being available.
  3. The college will provide to the District General Accounting Service a list containing the student’s name, student Id, fund type, payment ID and the amount to be returned to the fund program within 30 days from the date the report was available. This list contains the students identified in I (b).
  4. District General Accounting services will return all funds to the appropriate program in a timely manner but no late than 45 days from the date the report was available.
  5. The financial aid office will negate the portion returned to the Department of Education in Powerfaids within 45 days of the date of the report.
  6. Once a determination of the amount of the institutional overpayment that have to be returned to the Department of Education is made and the amount has been reported to the District General Accounting Services, the college financial aid offices will send the student a notice that the student must repay the District the amount the District has been required to pay the Department of Education. Students will be required to repay within 10 days.
  7. The College Financial Aid Office will place a negative service indicator (INSTU) on the student’s Peoplesoft record stopping the student from enrolling or receiving academic transcripts until the full amount is paid. Students will be instructed to repay at the College Business Office. The College Business Offices will remove the negative service indicator after receiving payment in full.
  8. R2T4 Calculations will be processed up to the end of the term. Although a student is determined to have earned 100% of their aid at the 60% point in the semester, the R2T4 calculation must still be performed to identify if the student is eligible for a post withdrawal disbursement.
  9. Post withdrawal disbursements (except loans) must be made to student within 45 days of when college determined the student withdrew from all classes.
  10. Post withdrawal loan proceeds must be disbursed with 180 days of the date the college determined the student withdrew from all classes. Student must meet all eligibility criteria for a loan prior to the LDA.
  11. If your college decides to collect the Title IV overpayment in installments, the whole debt must be paid within two years.

III. The R2T4 Report and R2T4 Worksheet

  1. The R2T4 report and R2T4 worksheet will be available to the colleges every two weeks after the start of each term.
  2. The purpose of this report is to capture the students who have received Title IV aid and who have stopped attending all of their classes. Additionally, the report provides information to facilitate the R2T4 process.
  3. The last date of attendance on this report is the date the student officially dropped the class through official class drop process, the date the instructor determined as the students last date of attendance in the class, and the date the student was withdrawn from the class for non- payment. If the instructor is uncertain and does not have evidence of the students last date of attendance in the class, the instructor will indicate that the date of last attendance is undetermined by placing a date identifier in the report.
  4. If on the exact date the student withdrew from all classes –and prior to the recalculation date-- the student was enrolled in less units than on the date Title IV aid was disbursed to the student, the Financial Aid Office will recalculate the student’s Title IV eligibility based on the enrollment status on the exact date of withdrawal. If the student is in less units on that date and the student’s eligibility is less than the amount originally disbursed, the student owes a Title IV overpayment for the amount of Title IV aid received beyond their eligibility. The R2T4 will be calculated based on the amount the student was eligible to receive on the date the student stopped attending all courses.
    1. For example, on August 27, 2010, the student received $1,500 in Title IV aid for being enrolled in 9 units as a three-quarter time student. On September 7, 2010, you receive a R2T4 report that indicates the student withdrew from a 3 unit class on September 1, 2010 and then withdrew from the remainder of the classes (6 Units) on September 3, 2010. The student’s eligibility for Title IV aid would be based on half-time status because the student was enrolled in 6 units on their last date of attendance. If the student’s eligibility for 6 units was $1,000, the student would have Title IV debt for $500 ($1,500-$1,000) and the R2T4 process would be based on the $1,000 of aid the student was eligible to receive. Note if the student withdrew after the college’s recalculation date, the amount the student would be eligible to receive would be based on the recalculation date.
  5. If the date the student withdrew from all classes was after the recalculation date, the Financial Aid Office will calculate the student’s Title IV eligibility based on the enrollment on the recalculation date and not on the last date of enrollment. If the student is in less units on the recalculation date and the student’s eligibility is less than the amount originally disbursed, the student owes a Title IV overpayment for the amount of Title IV aid received beyond their eligibility. The R2T4 will be calculated based on the amount the student was eligible to receive on the recalculation date the student.
    1. For example, on August 27, 2010, the student received $1,500 in Title IV aid for being enrolled in 9 units as a three-quarter time student. On September 9, 2010, the recalculation date, you verify that the student is enrolled in 6 units. You receive a R2T4 report that indicates the student withdrew from a 3 unit class on September 1, 2010 and then withdrew from the remainder of the classes (6 Units) on September 21, 2010. The student’s eligibility for Title IV aid would be based on half-time status because the student was enrolled in 6 units on the recalculation date. If the student’s eligibility for 6 units was $1,000, the student would have Title IV debt for $500 ($1,500-$1,000) and the R2T4 process would be based on the $1,000 of aid the student was eligible to receive. Note if the student withdrew prior to the college’s recalculation date, the amount the student would be eligible to receive would be based on the units the student was enrolled in on their last date of attendance.

IV. The FW Grade Report Will Be Available After the Grades Are Submitted at the End of Each Term

  1. This report will capture all students who have received a letter of W or F in all classes that the student was enrolled to complete.
  2. The report will identify those students who the professor has identified as earning a F and stopped attending class prior to the end of the term.
  3. The F grade that a student receives as a result of not staying in class will be treated in the same manner as a W grade.
  4. The FW grade report will be processed in the same manner as the R2T4 report.
  5. If on the FW grade report the professor reports a date that is prior to the date the student officially withdrew from the class, the last date of attendance used in the R2T4 process will be the date reported by the professor.

V. Last Date of Attendance in an Academically Related Event

  1. The R2T4 report will capture the students last date of attendance based on the students official withdrawal date, the professor initiated withdrawal date, or the systems withdrawal date for non-payment.
  2. Student initiated withdrawal date is the date the student using the official withdrawal process, withdrew from the class.
  3. The professor withdrawal date is the date the professor identified as the last date the student withdrew from the class.
  4. The system date is the last date the college authorized the student to be in class.
  5. If there is a conflict between the date the student indicated was their last date and the date the professor indicates as the student’s last date, the college:
    1. Will use the earliest date of withdrawal for R2T4 purposes, except when, the earliest date is the professor’s and the college financial aid office has evidence that the student was in attendance in an educationally related event after the date reported on the R2T4 report.
    2. Without any evidence to support the student’s date, the college will use the professors last date of attendance and not the students.
    3. A written statement from a student that conflicts with what the professor has reported is not evidence.
    4. The college may – if the college has evidence that a student attended an academic related event as define in regulation that was later in the semester – override the last date of attendance reported on the report. This evidence is to be maintained in the student’s file.

VI. Return of Funds Will Be in accordance With 34 CFR 668.22

  • Funds will be returned in the following order:
  1. Unsubsidized Direct Loan 
  2. Subsidized Direct Loan
  3. Pell Grant
  4. ACG
  5. FSEOG

VII. Institutional Charges

  1. Actual charges:
    1. The institutional charges are:
      1. The actual charges contained in the student’s account, and
      2. Any fees associated with book vouchers, and
      3. Any fees the student paid to the college that the student did not have a reasonably opportunity to pay/ purchase at an off campus establishment, or
      4. In the event that there are no charges on the students account, the college will use the number of units enrolled on the student’s last date of attendance, multiplied by the unit fee amount, and
      5. Any fees associated with book vouchers, and
      6. Any fees the student paid to the college that the student did not have a reasonably opportunity to pay/purchase at an off campus establishment.
    2. Student Representative Fee (SRF): this fee is discretionary and is not to be added in the R2T4 Institutional charges calculation.
    3. Universal Transit Pass (UTP): This fee is assessed for all students for the Fall and Spring semester. However the student retains the benefit of the UTP fee after withdrawing from the college. This fee is not to be added in the R24 institutional charges calculation.

VIII. Leave of Absence

  • Currently there is not an approved Leave of Absence for R2T4. Any student who is approved for an institutional leave of absence will not be authorized a Leave of Absence from the R2T4 process. If the student stops attending – even if on an approved leave of absence from the college- the Financial Aid Office will perform R2T4 calculation in the same manner as would be done for a student who withdrew from all classes without an approved leave of absence.

IX. Post Withdrawal Processing

  1. Eligibility requirements for a post withdrawal disbursement:
    1. Valid ISIR prior to withdrawal date, and
    2. Enrolled in eligible program prior to withdrawal, and
    3. Attended class in eligible program before withdrawing from classes.
    4. Meeting SAP or approved on appeal or probation prior to withdrawing from classes.
    5. Resolved all conflicting data prior to awarding deadlines as defined in volume one of the handbook.
    6. Submitted all required documentation to confirm federal eligibility requirements.
    7. Meets the requirements for a late disbursement.
  2. The college cannot require students to submit unnecessary documentation prior to processing a post withdrawal disbursement, i.e. class schedule, email form, etc. If the college has questions on eligibility for a post withdrawal disbursement they should research the Student Financial Aid Handbook or ask the Director of Financial Aid Systems.
  3. Colleges must establish internal written procedures on how they systematically identify students who must be evaluated for a post withdrawal disbursement.
    1. The procedures must identify how each college identifies all students who have a valid ISIR, enrolled in an eligible program and withdrew from at all their classes. And,
    2. The procedures must identify that each of the students who meet the above conditions were evaluated and document the outcome of that evaluation.
  4. The student’s eligibility will be based on their enrollment status on the last date they attended classes or the recalculation date whichever comes first.
  5. Students who are selected for verification must complete the verification process in the scheduled time period before a post withdrawal disbursement can be made to the student.
  6. A student who is selected for verification and has stopped attending classes is not authorized to receive an interim disbursement.
  7. Students who met the eligibility for aid prior to withdrawing must be processed for a post withdrawal disbursement.

X. Aid That Was Disbursed

  • Is the amount of aid that was disbursed to the student based on their enrollment prior to the the financial aid office receiving notice that the student was not longer in attendance from the R2T4 report, Non-passing Grade report, or other form of notice that the student had stopped attending college. Aid that was disbursed is the amount that was disbursed up to the maximum amount of their eligibility prior to determining the student was no longer attending. The college should confirm that voided, cancelled or stale dated checks are not counted as aid disbursed.

XI. Aid That Could Have Been Disbursed

  • This is the amount of aid that the student was eligible to receive at the recalculation date or last date of Attendance, whichever comes first, that was not disbursed to the student. This may include loans if the student requested a loan, completed the required entrance counseling, MPN, on the recalculation date or LDA (whichever comes first) the student was enrolled at least half time status, and the financial aid office certified (booked) the loan prior to the student withdrawing.

XII. Consumer Information

  1. Upon request from a prospective or current student the college must provide:
    1. The refund policy of the college.
    2. The requirements for the treatment of Title IV aid when a student withdraws.
    3. The requirement and procedures for students to officially withdraw. It must indicate the person or office for the student to contact to official withdraw.
    4. The college should provide sufficient information on the process to official withdraw and the financial consequences of withdrawing. The financial consequences should cover the colleges refund amounts and the Title IV aid consequences.
    5. The student should be able to estimate how much aid they will be required to return if they withdraw.
  2. It is recommended that this information be on the website, college catalog, or available upon request in the financial aid office.

XIII. Reentry Within 180 Days

  1. The college will not reverse any R2T4 calculation as a result of students returning within 180 days of their Last Date of Attendance (LDA).

XIV. Modules Within a Term

  1. If the student completes one class of a term in one of the mini sessions, they do not need to have a R2T4 calculation done.
  2. If the student is enrolled in more than one mini session and withdraws from all the classes in the first mini-session prior to the start date of the second mini-session, the college must have a written commitment that the student plans to return for the second mini-session or the college must complete the R2T4 calculation based on the withdrawal from all courses of the first mini-session.

XV. Death of a Student

  • The college must determine the withdrawal date for the student under 34 CFR 668.22(c)(1)(iv). This section provides that, if the institution determines that a student did not begin its withdrawal process or otherwise provide official notification of his or her intent to withdraw because of illness, accident, grievous personal loss, or other such circumstances beyond the student’s control, the withdrawal date is the date that the institution determines is related to that circumstance.