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Student Financial Aid Policies

Return of Title IV (R2T4) - 4A9

The Federal Return of Title IV Funds policy mandates that students who officially withdraw or unofficially withdraw from all classes (100%) prior to the end of the payment period may only keep the financial aid the student earned up to the time of the withdrawal. This policy applies to all undergraduate and graduate degree seeking students and professional students including students enrolled in off-campus programs.

In accord with the Policies of the Board of Trustees on refunds, and Title IV regulations on which this policy is based, the term “refund” refers to a return to a Title IV account of a payment of Federal aid made to a student who has withdrawn as defined above. This policy clarifies student liability for a repayment of Federal funds.

Procedure for official withdrawal

When it becomes necessary to withdraw from all classes, the student must contact the Service Center and complete a withdrawal form. If a student fails to attend or stops attending class(es), the student is expected to officially withdraw from the University by completing the withdrawal form. If a student stops attending all classes during a semester and does not go through the withdrawal process, the status is determined to be an unofficial withdrawal.

Official Withdrawals

A student notifies the school that they are withdrawing from the University, and does not complete all the days in the payment period that the student was scheduled to complete. The last date of attendance is determined by the official withdrawal form, emails received from the student and/or instructor, or other documentation from the Service Center.

Unofficial Withdrawals

The student does not notify the school and stops attending or does not receive a passing grade. Unofficial withdrawals are executed after grades are posted at the end of the term. For unofficial withdrawals, the calendar midpoint of the payment period or the last day of attendance in an academically-related activity is used to establish a withdrawal date. If the student receives an F grade, the instructors are required to report the date to determine whether the F was earned or not. If the F was earned, no return would be required.

If a student enrolled, but never attended with or without notification, this is considered a change in enrollment status, not a withdrawal. Therefore, a return calculation is not required. Adjustments to the aid must be performed, but a return calculation is not required.

Withdrawals from programs offered in modules

A student is considered to have withdrawn if the student ceases attendance at any point prior to completing the payment period, unless future attendance is documented on the withdrawal form or through a written statement from the student. The school obtains written confirmation from the student at the time of the withdrawal that the student will attend a module that begins later in the same payment period. If written confirmation of future attendance is obtained but the student does not return, this is considered a withdrawal, and requires a Return of Title IV calculation based on the original date of withdrawal.

Post Withdrawal

A Post-Withdrawal is calculated if prior to withdrawing the student earned more Federal financial aid than was disbursed for the payment period.

Return of Title IV Funds

The Return of Title IV Funds (R2T4) regulations require a school to determine the earned and unearned portions of the Title IV aid as of the date the student ceased attendance based upon the amount of time the student spent in attendance. Up through the 60% point in each payment period, a pro rata schedule is used to determine the amount of Title IV funds the student has earned at the time of withdrawal. After the 60% point in the payment period, a student has earned 100% of the Title IV funds the student was scheduled to receive during the period. The calculation and documentation must still be completed after this date for compliance.

The percentage of Title IV aid to be returned is equal to the number of calendar days remaining in the semester divided by the number of days in the semester. Scheduled breaks of five or more consecutive days are excluded and will include surrounding weekend days if classes are not held on those days. If the amount disbursed to the student is greater than the amount the student earned, unearned funds will be returned. If the amount disbursed to the student is less than the amount the student earned, the student may be eligible for a post-withdrawal disbursement of the earned aid that was not received.

Calendar example

A student is enrolled in a standard program beginning August 20 through December 14, based on payment period. There is an 8-day scheduled break for Thanksgiving from November 18 through November 25. This is a scheduled break of longer than five consecutive days and is excluded from the payment period.

117 calendar days minus 8 days from the scheduled break =
109 days student is scheduled to complete

Calculation of earned aid

A student withdrew from the university 44 days into the semester with charges of $4856.65.
44/109 = the student completed 40% of the term.

Student’s original aid

Subsidized Loan (net): $1732.00
Unsubsidized Loan (net): $990.00
Pell Grant: $2532.50

Per the Federal calculation, the student must return the amount of unearned aid, or the amount of unearned charges, whichever is less.

Unearned Aid: $5254.50 - (40% x $5245.50) = $3152.70
Unearned Charges: $4856.65 x 60% = $2913.99

Returned aid

Unsubsidized Loan: $990.00
Subsidized Loan: $1732.00
Pell Grant: $191.99

Returning unearned aid

  • University

Return of the funds to the Department of Education electronically via G5

  • Student

The student is obligated to return any Title IV overpayment by full and immediate repayment to the University or set up a satisfactory repayment. Any student who is in a repayment status will be advised in writing of such repayment and will be asked to repay immediately, or the student will be placed on accounts receivable for the amount due to each financial aid program.

Financial aid in excess of the amount earned is reduced in the following priority

  1. Federal Direct Unsubsidized Loan
  2. Federal Direct Subsidized Loan
  3. Federal Perkins Loan
  4. Federal Direct Graduate PLUS Loan
  5. Federal Direct Parent PLUS Loan
  6. Federal Pell Grant
  7. Federal Supplemental Educational Opportunity Grant (FSEOG)
  8. Teacher Education Assistance for College & Higher Education (TEACH) Grant
  9. Iraq and Afghanistan Service Grant

Calculations are done on a case-by-case basis after the withdrawal date is established.

The amount of the repayment will be returned to the applicable Federal program.

Timeframe for return of Title IV funds

  • R2T4 only applies to students who received or are entitled to Title IV, Federal Student Aid
  • The University has 30 days from the date of determination to perform the R2T4 calculation
  • The University has 45 days from the date of determination to return any required funds to the Department of Education

Students who are subject to Return of Title IV funds will be contacted by the Office of Student Financial Aid through a letter and informed of the calculation result.

Institutional Refund policy can be found at:
http://siusystem.edu/board-of-trustees/legislation/appendix_b.html

Report refund to the lender- If after a loan has been disbursed, the University discovers that a student never attended, then the refund the student received from the loan must be reported to the lender so the Department of Education can issue a 30-day demand letter to the student.

Student Refund-Direct Loans

If the student has received an overpayment of Direct Loan funds, the school will reduce the student’s disbursement and report the adjustment to U.S. Department of Education’s Common Origination and Disbursement (COD). The funds are then returned to the Department of Education using the G5 system.

Approved by Chancellor effective 2/22/19 
This policy was issued on February 25, 2019, replacing the January 2, 1997 version.
Document Reference: 4A9
Origin: OP 11/11/92; OC 2/22/19

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