This policy applies to students’ who withdraw official, administratively withdraw, fail to return from a leave of absence, or dismissed from enrollment at Redlands Community College. It is separate and distinct from the Redlands Community College refund policy. (Refer to institutional refund policy)
The calculated amount of the Return of Title IV (R2T4) funds that are required for the students affected by this policy, are determined according to the following definitions and procedures as prescribed by regulations.
The amount of Title IV aid earned is based on the amount of time a student spent in academic attendance, and the total aid received; it has no relationship to student’s incurred institutional charges. Because these requirements deal only with Title IV, the order of return of unearned funds do not include funds from sources other than the Title IV programs.
Title IV funds are awarded to the student under the assumption that he/she will attend school for the entire period for which the aid is awarded. When student withdraws or fails to complete their classes, he/she may no longer be eligible for the full amount of Title IV funds that were originally scheduled to be received. Therefore, the amount of Federal funds earned must be determined. If the amount disbursed is greater than the amount earned, unearned funds must be returned.
The institution has 45 days from the date that the institution determines that the student withdrew to return all unearned funds for which it is responsible. The school is required to notify the student if they owe a repayment via written notice.
The school must advise the student or parent that they have 14 calendar days from the date that the school sent the notification to accept a post withdraw disbursement. If a response is not received from the student or parent within the allowed time frame or the student declines the funds, the school will return any earned funds that the school is holding to the Title IV programs.
Post-withdraw disbursements will occur within 90 days of the date that the student withdrew.
“Official” Withdrawal from the School
A student is considered to be “Officially” withdrawn on the date the student notifies the Student Services or and Academic Advisor in writing of their intent to withdraw. The date of the termination for return and refund purposes will be the earliest of the following for official withdrawal:
- Date student provided official notification of intent to withdraw, in writing or orally.
- The date the student began the withdrawal from Redlands Community College, records. A student is allowed to rescind his notification in writing and continue the program. If the student subsequently drops, the student’s withdrawal date is the original date of notification of intent to withdraw.
Upon receipt of the official withdrawal information, Redlands Community College will complete the following:
- Determine the student’s last date of attendance as of the last recorded date of academic attendance on the school’s attendance record;
- Two calculations are performed:
- The student’s bill and attendance record are reviewed to determine the calculation of Return of Title IV funds the student has earned, and if any, the amount of Title IV funds for which the school is responsible. Returns made to the Federal Funds Account are calculated using the Department’s Return of Title IV Funds Worksheets, scheduled attendance and are based upon the payment period.
- Calculate the school’s refund requirement.
- The student’s grade record will be updated to reflect his/her final grade.
- Redlands Community College, will return the amount for any unearned portion of the Title IV funds for which the school is responsible within 45 days of the date the official notice was provided.
- The school will provide the student with a letter explaining the Title IV requirements:
- The amount of Title IV assistance the student has earned. This amount is based upon the length of time the student was enrolled in the program based on scheduled attendance and the amount of funds the student received.
- Any returns that will be made to the Title IV Federal program on the student’s behalf as a result of exiting the program. If a student’s scheduled attendance is more than 60% of the payment period, he/she is considered to have earned 100% of the Federal funds received for the payment period. In this case, no funds need to be returned to the Federal funds.
- Advise the student of the amount of unearned Federal funds and tuition and fees that the student must return, if applicable.
- Supply the student with ledger card record noting outstanding balance due to the school and the available methods of payment. A copy of the completed worksheet, check, letter and final ledger card will be kept in the student’s file.
In the event a student decides to rescind his or her official notification to withdraw, the student must provide a signed and dated written statement that he/she is continuing his or her program of study, and intends to complete the payment period. Title IV assistance will continue as originally planned. If the student subsequently fails to attend or ceases attendance without completing the payment period, the student’s withdrawal date is the original date of notification of intent to withdraw.
Administrative Withdrawal from School
In the event that the faculty member administratively withdraws a student from school, the faculty member must complete the Withdrawal Form using the last date of attendance as the drop date.
Any student who does not provide official notification of his or her absence and is not successfully passing the course will be subject to termination of that class and may be administratively withdrawn from that course.
Withdrawal before 60%:
The institution must perform a R2T4 to determine the amount of earned aid up through the 60% point in each payment period or period of enrollment. The institution will use the Department of Education’s prorate schedule to determine the amount of R2T4 funds the student has earned at the time of withdrawal. After the 60% point in the payment period or period of enrollment, a student has earned 100% of the Title IV funds he or she was scheduled to receive during the period. The institution must still perform a R2T4 to determine the amount of aid that the student has earned.
Withdrawal after 60%:
For a student who withdraws after the 60% point-in-time, there are no unearned funds. However, a school must still determine whether the student is eligible for a post-withdrawal disbursement.
Example of Calculation: - CREDIT HOUR SCHOOL
- Determined the percentage of Title IV aid earned by the student by taking the calendar days completed in the payment period, divided by the total calendar days in the payment period (excluding breaks of 5 days or more and days the student was on an approve LOA
18(completed days) = 15.3% (% of completed calendar days)
118 (total days)
- Determine the amount of Title IV aid earned by the student by multiplying the percentage of Title IV aid earned times the total of the Title IV aid disbursed plus the Title IV aid that could have been disbursed for the payment period.
15.3 % X $2805.00 = 429.17 (Amount of aid earned by student)
- If this percentage is greater than 60%, the student earns 100% of the disbursed Title IV funds or aid that could have been disbursed.
- If this percentage is less than 60%, then the percentage earned is equal to the calculated value.
- Funds are returned to the appropriate federal program based on the percent of Percentage of aid earned = the number of scheduled hours in the payment period completed unearned aid using the following formula:
- Aid to be returned = (100% minus the percent earned) multiplied by the amount of aid disbursed toward institutional charges. If a student earned less aid than was disbursed, the institution would be required to return a portion of the funds and the student may be required to return a portion of the funds. All Title IV funds that the institution must return will be made no later than 45 calendar days after the date the school determines that the student withdrew.
- When Title IV funds are returned, the student may owe a balance to the institution.
Order of Return
Redlands Community College is authorized to return any excess funds after applying them to current outstanding Cost of Attendance (COA) charges. A copy of the Institutional R2T4 work sheet performed on your behalf is available through the office upon student request.
In accordance with Federal regulations, when Title IV financial aid is involved, the calculated amount of the R2T4 Funds is allocated in the following order:
- Unsubsidized Direct Stafford loans (other than PLUS loans)
- Subsidized Direct Stafford loans
- Parent PLUS loans
- Federal Pell Grant
- Iraq and Afghanistan Service Grant for which a Return is required
- Federal Supplemental Educational Opportunity Grant
- Other Title IV assistance
- State Tuition Assistance Grants (if applicable)
- Private and institutional aid
- The Student
Timeframe for returning an unclaimed Title IV Credit Balance
If a school attempts to disburse the credit balance by check and the check is not cashed, the school must return the funds no later than 240 days after the date the school issued the check.
If a check is returned to a school or an EFT is rejected, the school may make additional attempts to disburse the funds, provided that those attempts are made not later than 45 days after the funds were returned or rejected. When a check is returned or EFT is rejected and the school does not make another attempt to disburse the funds, the funds must be returned before the end of the initial 45-day period.
The school must cease all attempts to disburse the funds and return them no later than 240 days after the date it issued the first check.
- Redlands Community College’s responsibilities in regards to Title IV funds follow:
- Providing students information with information in this policy;
- Identifying students who are affected by this policy and completing the return of Title IV funds calculation for those students;
- Returning any Title IV funds due to the correct Title IV programs.
Overpayment of Title IV Funds
Any amount of unearned grant funds that you must return is called overpayment. The amount of grant overpayment that you must repay is half of the grant funds you received or were scheduled to receive. You must make arrangements with Redlands Community College or Department of Education to return the amount of unearned grant funds.
Post Withdrawal Disbursement
The institution must disburse any Title IV funds a student is due as part of a post-withdrawal disbursement within 45 days of the date the school determined the student withdrew and disburse any loan funds a student accepts within 180 days of that date.
The institution will offer any post-withdrawal disbursement of loan funds within 90 days of the date it determines the student withdrew.
If you did not receive all of the funds that you have earned, you may be due a post-withdraw disbursement. Redlands Community College may use a portion or all of your post- withdraw disbursement for tuition and fees (as contracted with Redlands Community College). For all other school charges, Redlands Community College needs your permission to use the post-withdraw disbursement. If you do not give permission, you will be offered the funds. However, it may be in your best interest to allow the school to keep the funds to reduce your debt at the school.
Student Responsibilities in regards to Return of Title IV funds
- Returning to the Title IV programs any funds that were dispersed to the student in which the student was determined to be ineligible for via the R2T4 calculation.
- Any notification of withdraw should be in writing and addressed to the appropriate institutional official.
- A student may rescind his or her notification of intent to withdraw. Submissions of intent to rescind a withdraw notice must be filed in writing.
- These notifications, to either withdraw or rescind to withdraw must be made to the official records/registration personal at your school.
Refund vs. Return to Title IV Funds
The requirements for the Title IV funds when you withdraw are separate from any refund policy that Redlands Community College may have to return to you due to a cash credit balance. Therefore, you may still owe funds to the school to cover unpaid institutional charges. Redlands Community College may also charge you for any Title IV funds that they were required to return on your behalf.
If you do not already know what Redlands Community College refund policy is, you may ask the Business Office for a copy.
Return to Title IV Questions
If you have questions regarding Title IV funds after visiting with your financial aid director, you may call the Federal Student Aid Information Center at 1-800-4-FEDAID (800-433-3243). TTY users may call 800-730-8913. Information is also available on the Federal Student Aid website.
*This policy is subject to change at any time, and without prior notice.