Withdrawal and Return of Title IV Funds (R2T4) Policy | Bursar's Office | Kent State University

Withdrawal and Return of Title IV Funds (R2T4) Policy

PROCESSING OF FEDERAL FINANCIAL AID (TITLE IV) FOR STUDENTS THAT OFFICIALLY AND UNOFFICIALLY WITHDRAWAL FROM KENT STATE UNIVERSITY

How a Withdrawal Affects Financial Aid

Federal Student Aid (FSA), also known as Title IV funding, is awarded under the assumption that a student will complete course(s) for the entire semester and/or payment period for which the funds were awarded.  When a student ceases attendance, officially and/or unofficially, in a course, regardless of the reason, the student may no longer be eligible for the full amount of Title IV funds originally awarded. 

 

The return of funds to the federal government is based on the premise that financial aid is earned in proportion to the length of time during which the student attended.  A pro-rated schedule determines the amount of federal aid a student has earned while attending.   For example, a student who withdraws in the second week of the semester has earned less of his/her financial aid than a student who withdraws in the fifth week.

 

Once the 60% point in the semester/payment period is reached, a student is considered to have earned all of the financial aid originally awarded and will not be required to return any funds.

 

Financial aid that is processed for a student who never begins attendance in any class will be canceled.

 

If a recipient of Title IV funds stops attending Kent State University after beginning attendance, the amount of Title IV assistance earned by the student must be determined. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds must be returned to the federal program(s). If the amount disbursed to the student is less than the amount the student earned, and for which the student is otherwise eligible, he or she is eligible to receive a post-withdrawal disbursement of the earned aid that was not received.

 

Earned versus Unearned TIV Funding

If a student officially or unofficially withdraws, ceases attendance, or is administratively withdrawn from Kent State University, federal regulations require Kent State University to calculate the amount of Federal Title IV funds earned during the term from which the student withdrew.

 

The percent earned is equal to the number of calendar days completed up to the withdrawal (officially or unofficially) date divided by the total number of calendar days in the semester/payment period.  Breaks of 5 days or longer are not included in the count of total days in the payment period.

 

Earned Percent = Number of Days Completed ÷ Total Days in Payment Period

 

Unearned Percent = 100% - Earned Percent

 

As a result of a withdrawal, students who received federal funds will be required to repay unearned aid. The repayment calculation is performed utilizing the federal government's repayment worksheet see link below for access to the federal worksheet:

 

http://ifap.ed.gov/aidworksheets/attachments/2010IASGCreditHourFinal.pdf

 

 

Post-Withdrawal Disbursements

When the total amount of the Title IV assistance earned as of the withdrawal date is more than the amount that was disbursed to the student, the difference between the two amounts will be treated as a post-withdrawal disbursement.

 

Post-Withdrawal Disbursement of Federal Grant Funds

Kent State University will automatically credit the student’s account with a late disbursement of Pell Grant and FSEOG funds for current institutional charges (tuition, fees, room and board).  Excess funds will be refunded to the student.  The post-withdrawal disbursement will be made within 45 days of the date the institution determined the student withdrew.

 

Post-Withdrawal Disbursement of Federal Loan Funds

If a post-withdrawal disbursement includes federal loan funds, Kent State University must obtain the students, or parent if a PLUS loan, permission before it can be disbursed. The borrower will be notified within 30 days of the date of determination of withdrawal of the opportunity to accept all or a part of the post-withdrawal disbursement. The student or parent has 14 days from the date of notification to respond. Kent State University will disburse the loan funds within 180 days of the date of determination of the student's withdrawal date.  Loan funds will be applied towards the outstanding semester charges on the student's account and may pay up to the amount of the allowable charges.  Any remainder will be paid directly to the student or parent.

Determination of Withdrawal Date

The return of TIV funds process begins when the student officially and/or unofficially withdrawals from or stops attending courses. The withdrawal date used in the return calculation of a student’s federal financial aid is the date the student began the official withdrawal process and/or the date of the student’s notification that they wish to withdrawal.  If a student stops attending classes without notifying Kent State University, the withdrawal date will be the midpoint of the semester or the last date of academic activity as documented by the student’s instructor.

Not Started

Instructors are required to report each term whether or not a student begins/does not begin attendance in a course. If a student does not begin attendance in a course, that course must be taken out of consideration for TIV funds. The TIV funds will be recalculated excluding that course. Depending on the remaining hours of registration, students may have their aid partially reduced or fully reduced. Students may also be subject to Title IV return calculations resulting in a reduction or cancelation of Title IV aid.

Students who do not plan to attend and will not be participating in a course should drop the class prior to the start of the term (or, at the very least, within the 100% refund period) to avoid Title IV aid recalculation.

Never Attended, Failed (NF) and Stopped Attending, Failed (SF) Grades

Students who receive grades of NF or SF during a term will be subject to recalculation of their financial aid eligibility, even if the student later withdraws from that course.

Any course that is graded as an NF (Never Attended Fail) must be taken out of consideration for Title IV aid. The Title IV aid for the term will be recalculated excluding that course. Depending on the remaining hours of registration, students may have their aid partially or fully reduced. Students with no remaining courses or having withdrawn from all attended courses are also subject to federal aid return calculations.

Students who do not attend and will not be participating in a course should drop the class prior to the start of the term (or within the 100% refund period) to avoid financial aid recalculation at the end of the term.

Order of Return to Federal Aid Programs

In accordance with federal regulations, unearned aid will be returned to the federal programs within 45 days of the student’s withdrawal in the following order:

 

  • Federal Direct Unsubsidized Loan
  • Federal Direct Subsidized Loan
  • Federal Perkins Loan
  • Federal Direct Parent Loan for Undergraduate Students (PLUS)
  • Federal Pell Grant
  • Federal Supplemental Educational Opportunity Grant

 

Student notification of Repayment

The student and the school are both responsible for returning unearned federal financial aid to the federal government.  Kent State University will return funds on the student's behalf to the appropriate federal programs and subsequently will bill the student for any balances owed back to Kent State University as a result of the return of Title IV funds. An email reflecting the adjustment(s) to the student’s Title IV funds and the remaining student account balance will be sent to the student. The student is responsible for any outstanding balance resulting from a Return of Title IV calculation.  Students are encouraged to contact the One Stop for Student Services to make arrangements for any outstanding and/or past due balance owed to Kent State University. 

 

Additional Loan Information to Consider When Withdrawing

 If the student is not enrolled at least half-time for more than 6 months, their loans will go into repayment. More specifically the student’s six (6) month grace period begins the day their enrollment status drops below half-time. The student must complete Exit Loan Counseling at www.studentloans.gov and contact their servicer to make payment arrangements. Loans must be repaid by the loan borrower (student/parent) as outlined in the terms of the borrower’s promissory note. The student should contact the server if they have questions regarding their grace period or repayment status.

Consequences of Non-Repayment

Students who owe the US Department of Education for an overpayment (unearned due to not attending for more than 60% of the payment period) of Title IV funds are not eligible for any additional federal financial aid until the overpayment is paid in full or payment arrangements are made with the US Department of Education.

 

Students who owe the institution because of the return of Title IV funds calculation will not be eligible to register for subsequent semesters or receive academic transcripts until the balance is paid in full.

How a Withdrawal Affects Future Financial Aid Eligibility

Refer to the Financial Aid Office Satisfactory Academic Progress Policy to determine how a withdrawal impacts aid eligibility.

   

 

Kent State University’s Tuition Refund Policy

Refunds of tuition for full semester courses are made upon the following basis:

On or before the first day of class 100% refund
Week 1 100% refund
Week 2                      80% refund
Week 3 65% refund
Week 4 60% refund

After the end of the fourth week of classes no refunds will be made.

 

A comparable prorated refund schedule is calculated individually for summer sessions and other irregular terms.

Room and Board charges will be pro-rated based on the official date of withdrawal.  

 

Adjusting Institutional grants and scholarships, awarded directly through Student Financial Aid:

Calculation will be based on the refund period for full term courses, at the time the student goes to zero credit hours.  The amount to be returned will be rounded down if the calculation does not result in a whole dollar amount.  For example, if a student withdraws from their last class at during the 60% refund period, they will be permitted to keep 40% of the scholarship and grant awards from Student Financial Aid.

 

Adjusting Institutional grants and scholarships awarded by a department or a regional campus:

 In some cases, the award will have to be reduced.  In other circumstances, if the award is less than tuition, the student may be permitted to keep the entire award.  Policies will vary based on the fund and donor instructions and as such, the students are encouraged to contact the awarding office/campus.