Case Study 1:
A student withdraws from a two-year, semester-based community college, is eligible for Title IV grants and loans (partially disbursed) and is due a post-withdrawal disbursement (PWD).
Case Study 2:
A student withdraws from a community college that measures progress in credit hours and was disbursed Title IV grants and loans and both the school and the student must return grant funds.
Case Study 3:
A student unofficially withdraws and is receiving Title IV grants and loans.
Case Study 4:
A student unofficially withdraws and is receiving Title IV grants and loans at a school that measures academic progress in clock hours and performs its return calculations on a period of enrollment basis.
Case Study 5:
A student unofficially withdraws and is receiving Title IV grants and loans at a school that measures academic progress in clock hours and performs its return calculations on a payment period basis.
Case Study 1:
In this case study scenario, a student withdraws from a two-year semester-based community college that measures academic progress in credit hours. The student is eligible for Title IV grants and loans (partially disbursed) and is due a PWD.
Learning Objectives
Learn to complete Steps 1 – 4 of the Credit-Hour R2T4 worksheet and be able to:
-
identify the basic information needed to complete the R2T4 worksheet, including the withdrawal date and date of the institution’s determination that the student withdrew;
-
calculate the percentage of the payment period or period of enrollment the student completed;
-
calculate both the percentage and the amount of Title IV aid earned by the student;
-
determine if the student is due a PWD of Title IV aid or if Title IV aid must be returned to the Department;
-
determine the amount of any PWD due to the student or returned to the Department; and
-
identify the information a school must maintain in its files when a student is eligible for a PWD, and complete a PWD Tracking Sheet.
Academic Year:
- Academic Year (AY)/Program credit hours
- 24 semester credit hours, 32 weeks, 2 semesters
Payment Period Length:
- Period credit hours
- 16 weeks, 110 calendar days
Payment Period Start Date:
- Period Start Date reference:
- August 23
- Payment Period End Date
- Payment Period End Date:
- Payment Period End Date:
- December 10
Institutionally Scheduled Break:
- Institutionally Scheduled Break reference:
- None
Required to Take Attendance:
- Required to Take Attendance reference
- No
- Method for Matching FSEOG
- Method for Matching FSEOG:
- Method for Matching FSEOG
- None
- Period used in Return calculation
- Period used in Return calculation:
- Period used in Return calculation
- Payment Period
The student is a first-year student and the charges to their account for the first semester are as follows:
- fee labels
- Tuition and Fees:
- Technology Fee:
- Books and Supplies:
- Health Insurance:
- amount per time period
- $ 1,000.00/16-week semester
- $ 100.00/16-week semester
- $ 400.00/16-week semester
- $ 200.00/academic year
Charges remaining on the student’s account after the withdrawal:
Tuition:
School Authorized to Credit Account for Other Charges:
$ 100.00
Yes (all charges)
The student’s financial aid package includes the following annual awards:
- loan/grant label
- Pell Grant:
- Direct Subsidized Loan:
- State Grant:
- College Grant:
- dollar amounts
- $ 2,000.00
- $ 3,500.00
- $ 500.00
- $ 200.00
Discussion
On the first day of the fall semester, August 23, the student received the following disbursements to their student account:
- Penny's Student accounts
- Pell Grant:
- Net Direct Subsidized Loan:
- State Grant:
- College Grant:
- Account totals
- $1,000.00
- $0
- $500.00
- $100.00
Although the student is grateful for the assistance, they are concerned about meeting their living costs for the year.
On October 8, the student came to the Financial Aid Office to advise that they don’t think they are doing very well and is considering dropping out prior to November 1, the last day to withdraw from classes without academic penalty. To help decide, they request information on the withdrawal process. You are fairly certain that the student is having a hard time adjusting to college life and want to encourage them to continue until the end of the semester, December 10. After you provide them preliminary information, you ask if it is their intent to withdraw. The student says they need some time to think it over and makes a follow-up appointment for October 13.
When the student comes to see you on October 13, they indicate that the last class they attended was on September 30. Because the student doesn’t see how they can get caught up on the work they’ve missed, they are adamant about withdrawing, so you give them instructions on completing the college’s official withdrawal process and advise them where they can get the appropriate forms. The student picks up the forms from the registrar on October 14 and turns in the completed forms on October 15.
Let’s review some basic information about the student as well as our learning objectives for this case. The student attended a two-year community college, which was on the semester system. Students earn academic credits based on credit hours successfully completed. Before withdrawing, the student received their Pell Grant disbursement but not their Direct Loan.
Solution
The first thing we’ll need to do is to decide on the date of the school’s determination that the student withdrew. Then, we’ll complete Step 1: Student’s Title IV Aid Information, which includes:
-
Title IV aid disbursed, and
-
Title IV aid that could have been disbursed.
The date of the institution’s determination is the date you were advised by the student that they had decided to withdraw (October 13). On the earlier date, October 8, the student was only thinking about withdrawing.
Date of the institution’s determination that the student withdrew = October 13.
Note that for a student who provides notification to the institution of their withdrawal, the date of determination is the student’s withdrawal date, or the date of notification of withdrawal, whichever is later (34 CFR 668.22(I)(3)(i)). In this case the dates are identical, October 13.
The withdrawal date for Title IV purposes, October 13, is discussed in Step 2.
Step 1: Student’s Title IV Aid Information
Box A.
Title IV grants aid disbursed
- Box A grant
- Pell Grant
- A. =
- Box A total
- $1,000.00
- $1,000.00
Box B.
Net Title IV loans disbursed = $ 0.00
Box C.
Title IV grants that could have been disbursed = $ 0.00
Box D.
The student’s Direct Loan had not been disbursed yet. But, they were eligible for the disbursement. Net Title IV loans that could have been disbursed = $ 1,700.00
D =
$1,700.00
Box E.
Although the student also received disbursements of state and institutional aid, only Title IV aid is considered in the return of funds calculation. Title IV aid disbursed = $1,000.
E =
$1,000.00
Box F.
Box F is equal to the $1,000.00 from Box A plus $0.00 from Box C. Box F = $1,000.
F =
$1,000.00
Box G.
Both the disbursed Pell (Box A) and undisbursed Direct Loan (Box D) are included in Box G. Total Title IV aid disbursed plus Title IV aid that could have been disbursed = $2,700.
- Box G grants
- Pell Grant (Box A)
- Net Direct Subsidized Loan (BoxD)
- label
- Total Title IV aid disbursed plus could have been disbursed (Box G)
- Box G totals
- $1,000.00
- $1,700.00
- amount
- $ 2,700.00
G =
$ 2,700.00
Step 2: Percentage of Title IV Aid Earned
-
Payment period start date = August 23
-
Payment period end date = December 10
-
Withdrawal date = October 13
Note: Since the school does not take attendance and is not required by an outside entity to take attendance, the withdrawal date is the date the student began the official school withdrawal process. Since the school includes the financial aid office as one of those places where the student can begin the withdrawal process, the withdrawal date is October 13.
Although the school’s refund policy is that the withdrawal date is the date a student turns in the signed withdrawal forms—which they did on October 15— the school must use the date the student begins the withdrawal process or otherwise provides official notification (October 13).
Although the student stopped attending classes on September 30, they didn’t notify the school (begin the official withdrawal process) until October 13. When they came to see you on October 8, they were only thinking about withdrawing.
Of course, the school could have documented a last date of attendance at an academically-related activity and used that as the student’s withdrawal date if it so chose.
Box H.
Percentage of payment period completed
-
Since the student attended a credit-hour school, the percentage of aid completed is calculated by dividing the number of calendar days completed by the total number of calendar days in the payment period. Number of calendar days completed in payment period = 52 (August 23–October 13).
-
Because the semester does not include a scheduled break of five or more consecutive days, all of the calendar days in the period from August 23 to December 10 are counted. Number of calendar days in payment period = 110.
Note: Days in a period are counted as follows:
-
the first day of the payment period is the first scheduled day of an academically related activity;
-
the last day of the payment period is the last scheduled day of an academically related activity;
-
the school must count the date of withdrawal as a date of attendance.
-
-
52 days ÷ 110 days = .4727, rounded to .473, or 47.3%. Percentage of payment period completed = 47.3%.
H. Because this percentage is less than or equal to 60%, the percentage of Title IV aid earned in Box H = 47.3%.
Step 3: Amount of Title IV Aid Earned by the Student
Box I.
47.3% (Percentage of Title IV aid earned from Box H) X $ 2,700.00 (Total Title IV aid disbursed plus Title IV aid that could have been disbursed from Box G) = $1,277.10. Amount of Title IV aid earned by the student (Box I) = $1,277.10.
I. =
- Box I total
- $1,277.10
Step 4: Total Title IV Aid to Be Disbursed or Returned
Box J.
Because the total aid earned (Box I) is greater than the total aid disbursed (Box E), the student is due a PWD. $1,277.10 (Box I) – $1,000.00 (Box E) = $277.10. PWD (Box J) = $277.10.
J. =
$277.10
If a PWD is due the student, you stop here on the worksheet (page 2 is not required as shown in our worksheet walkthrough). Your next step is to begin compiling the information a school must maintain in its files when a student is eligible for a PWD (the school has chosen to use FSA’s -Withdrawal Disbursement Tracking Sheet) and provide the required notifications to the student.
The Post-Withdrawal Disbursement Tracking Sheet
The school performed the R2T4 calculation on October 15 and determined that the student was eligible for a PWD of $277.10 (Step 4, Box J).
However, the COD system will not accept requests for other than whole dollars (no cents) for the Direct Loan Program. Therefore, the school must round down to, request, and disburse $277.00.
Because the PWD would be composed entirely of loan funds, the school could not credit any funds to the student’s account or disburse any funds to them directly without sending them written notification advising them of their responsibility to repay the funds and obtaining their confirmation that they still want them.
Therefore, on October 20, the school sent the student a letter explaining that:
-
they were eligible for a PWD of Subsidized Direct Loan funds in the amount of $277.00;
-
they could accept some or all of the funds;
-
the student was obligated to repay any loan funds they accepted;
-
if they accepted the disbursement, $100 would be credited to their account for unpaid charges and that they could not receive that $100;
-
if they accepted the disbursement, the school would make a direct disbursement directly to them of $177.00; and
-
they have until November 13 (24 days from the day the school mailed the letter)1 to accept the disbursement, and that if their response was received after that date, the school did not have to make the disbursement.
On November 13, the school received confirmation from the student that they accepted all of the funds.
On November 15, the school drew down $277.00 in Subsidized Direct Loan funds through G5, credited the student’s account $277, retained $100 for unpaid charges and sent the student a check for the credit balance of $177.00. (Note that the school could have drawn down the funds, credited the student’s account with $100.00, and sent the student the balance of $177.00, but we do not require a school to deviate from its normal cash management procedures and establish a different type of audit trail for PWDs.)
The school included a record of the calculation and communications described above in the student’s financial aid file.
Case Study 2:
In this case study scenario, a student withdraws from a two-year semester based public community college that measures progress in credit hours. The student has been disbursed Title IV grants and both the school and the student must return grant funds.
Learning Objectives
Learn to complete Steps 1–10 of the Credit-Hour R2T4 worksheet and be able to:
-
identify the basic information needed to complete the R2T4 worksheet, including the withdrawal date and date of the institution’s determination that the student withdrew for a student who officially withdraws;
-
calculate the percentage of the payment period or period of enrollment the student completed;
-
calculate both the percentage and the amount of Title IV aid earned by the student;
-
determine if the student is due a PWD of Title IV aid or if Title IV aid must be returned to the Department;
-
determine the amount of any PWD due to the student or any amount that must be returned to the Department;
-
apply the Title IV grant protection; and
-
apply the de minimis grant repayment provision.
Academic Year:
Payment Period Length:
Payment Period Start Date:
Payment Period End Date:
Institutionally Scheduled Break:
Taking Attendance Required:
Method for Matching FSEOG:
Period used in Return calculation:
24 semester hours, 32 weeks, 2 semesters
16 weeks, 110 calendar days
January 8
May 4
Yes, 7 days
No
Fund-specific
Payment Period
The student is a first-time freshman at the school. Charges to their account are as follows:
- label
- Tuition and Fees:
- School Authorized to Credit Account for Other Charges:
- values
- $1,000.00/16-week semester
- Yes (all charges)
The student’s financial aid package includes the following annual awards:
- label
- Pell Grant:
- FSEOG:
- value
- $2,800.00
- $2,400.00
Discussion
On the first day of the spring semester, January 8, the student received the following disbursements to their student account:
- Discussion
- Pell Grant:
- FSEOG:
- Discussion Figures
- $1,400.00
- $1,200.00
The student enrolled as a freshman at the school for the spring semester on January 8. On January 18, the student received a call from the state treasurer informing them that the programming job they had applied for six months ago was theirs for the taking. That same day, they contacted the Financial Aid Office to: (1) advise them that they were withdrawing from their program, (2) begin the formal withdrawal process (11 calendar days into the semester), and (3) find out what to do next. All of their financial aid for the semester had been disbursed.
Solution
The date of the institution’s determination that the student withdrew is the day they contacted the Financial Aid Office to advise the school that they were withdrawing from the school: January 18.
Step 1: Student’s Title IV Aid Information
Box A.
Because the school uses the fund-specific method of matching FSEOG funds, 100% of the student’s FSEOG grant is used in the calculation. Title IV grant aid disbursed = $2,600.00.
- Box A grants
- Pell Grant:
- FSEOG:
- A. =
- Box A total
- $1,400.00
- $1,200.00
- $2.600.00
Box B.
Net Title IV loans disbursed = $0.00.
Box C.
Grants that could have been disbursed = $0.00.
Box D.
Net Title IV loans that could have been disbursed = $0.00.
Box E.
Total Title IV aid disbursed for the payment period = A + B = $2,600.00 + $0.00 = $2,600.00.
Box F.
Total Title IV grant aid disbursed and could have been disbursed for the payment period = A + C = $2,600.00 + $0.00 = $2,600.00.
Box G.
Total Title IV aid disbursed and could have been disbursed for the payment period = A + B + C + D = $2,600.00 + $0.00 + $0.00 + $0.00 = $2,600.00.
Step 2: Percentage of Title IV Aid Earned
-
Payment period start date = January 8.
-
Payment period end date = May 4.
-
Date of withdrawal = January 18.
-
Percentage of payment period completed:
-
Number of calendar days completed = 11 calendar days.
-
Number of calendar days in payment period = 110 calendar days.
Note: Although the total number of days in the payment period is 117 days, remember that you must exclude scheduled breaks of five days or more from the denominator.
-
11 days ÷ 110 days = 0.100. Percentage of payment period completed = 10.0%.
-
Box H.
Because this percentage is less than or equal to 60%, the percentage of Title IV aid earned in Box H = 10.0%.
Step 3: Amount of Title IV Aid Earned by Student
Box I.
Multiply 10.0% (Percentage of Title IV aid earned from Box H) X $2,600.00 (Total Title IV aid disbursed plus Title IV aid that could have been disbursed from Box G) = $260.00 Amount of Title IV aid earned by student = $260.00.
I. =
- Box I total
- $260.00
Step 4: Total Title IV Aid to be Disbursed or Returned
Box J.
Because the total Title IV aid earned (Box I) is less than the aid disbursed (Box E), no PWD is due, and we proceed to Box K. PWD= N/A.
Box K.
Because the total aid disbursed (Box E) is greater than the total aid earned (Box I), Title IV aid will need to be returned.
$2,600.00 (Box E) – $260.00 (Box D) = $2,340.00. Title IV aid to be returned = $2,340.00.
Step 5: Amount of Unearned Title IV Aid Due from the School
Box L.
Institutional charges for the payment period or period of enrollment = $1,000.00.
Tuition and Fees
- Tuition and Fees total
- $1,000.00
Box M.
Subtract 10.0%, the percentage of Title IV aid earned (Box H), from 100% (100% – 10.0% = 90.0%). Percentage of Title IV aid unearned = 90.0%.
Box N.
First, calculate the unearned institutional charges. $1,000.00 (institutional charges from Box L) X 90.0% (% Title IV aid unearned from Box M) = $900.00. Amount of unearned institutional charges = $900.00.
Box O.
Then, compare the amount of Title IV aid to be returned (Box K) to unearned institutional charges (Box N), and enter the lesser amount for Box O.
Box K =
Box N =
$2,340.00
$900.00
Amount of unearned Title IV aid due from the school = $900.00.
Step 6: Return of Funds by the School
Box P.
The student had no loans, so the total loans the school must return = $0.00.
Box P =
- Box P total
- $0.00
The student’s Pell Grant ($1,400.00) exceeds the amount the school must return ($900.00), so the school must return $900.00 to the Federal Pell Grant program. The school must return the funds as soon as possible, but no later than 45 days from the date it determined the student withdrew.
Step 7: Initial Amount of Unearned Title IV Aid Due from Student
Box Q.
Subtract the amount of Title IV aid that the school must return ($900.00 from Box O) from the total amount of Title IV aid that is to be returned ($2,340.00 from Box K). $2,340.00 – $900.00 = $1,440.00. Initial amount of unearned Title IV aid due from student = $1,440.00.
Step 8: Repayment of the Student’s Loans
Box R.
The student had no loans, so the total loans the student must return = $0.00.
Step 9: Grant Funds to be Returned
Box S.
Initial amount of Title IV grants for the student to return
Subtract the amount of loans to be repaid by the student ($0.00 from Box R) from the initial amount of unearned Title IV aid due from the student ($1,440.00 from Box Q) to find the initial amount of Title IV grants for the student to return. $1,440.00 – $0.00 = $1,440.00.
Box T.
Amount of grant protection
Multiply the total of Title IV grant aid that was disbursed and that could have been disbursed for the payment period or period of enrollment ($2,600.00 from Box F) by 50%. Amount of grant protection = $2,600.00 X 50.0% = $1,300.00.
Box U.
Title IV grant funds for the student to return
Subtract the protected amount of Title IV grants ($1,300.00 from Box T) from the initial amount of Title IV grants for student to return ($1,440.00 from Box S). Total grants for student to return = $1,440.00 – $1,300.00 = $140.00.
Step 10: Return of Grant Funds by the Student
Amount of Title IV grants for the student to return
-
Subtract the amount the school had to return to the Federal Pell Grant program ($900.00) from the amount of Federal Pell Grant disbursed to the student ($1,400.00). Remaining unearned Pell Grant balance = $1,400.00 – $900.00 = $500.00.
-
Since the $500 remaining in Pell Grant funds exceeds the $140.00 for the student to return, the school informs the student that they must repay the $140.00 and that they have 45 days to make repayment arrangements or repay their overpayment. The school also informs the student that if they fail to repay or make arrangements to repay the overpayment, they will be referred to the Department and will lose eligibility for additional Title IV aid.
The school included a record of the calculation and communications described above in the student's financial aid file.
Case Study 3:
In this case study scenario, a student unofficially withdraws from a four-year semester-based public institution that measures academic progress in credit hours.
Learning Objectives
Learn to complete Steps 1–9 of the Credit-Hour R2T4 worksheet and be able to:
-
identify the basic information needed to complete the R2T4 worksheet, including the withdrawal date and date of the institution’s determination that the student withdrew for a student who withdraws unofficially;
-
calculate the percentage of the payment period or period of enrollment the student completed;
-
calculate both the percentage and the amount of Title IV aid earned by the student;
-
determine if the student is due a PWD of Title IV aid or if Title IV aid must be returned to the Department;
-
determine the amount of any PWD due to the student or any amount that must be returned to the Department; and
-
apply the Title IV grant protection.
Academic Year:
Payment Period Length:
Payment Period Start Date:
Payment Period End Date:
Institutionally Scheduled Break:
Required to Take Attendance:
Method for Matching FSEOG:
Period used in Return calculation:
30 weeks, 24 semester hours, 2 semesters
15 weeks, 100 calendar days
September 1
December 9
None
No
Aggregate method
Payment Period
The student is a third-year student.
- label
- Tuition and fees:
- Housing:
- Food:
- Books and Supplies: (credit voucher at school store)
- amount per semester
- $4,000.00/15-week semester
- $1,000.00/15-week semester
- $1,000.00/15-week semester
- $500.00/15-week semester
- School Authorized to Credit Account for Other Charges
- School Authorized to Credit Account for Other Charges:
- Response to School Authorized to Credit Account for Other Charges
- Yes (all charges)
The student’s financial aid package included the following annual awards:
- grant/loan label
- Pell Grant:
- State Grant:
- FSEOG:
- Subsidized Direct Loan:
- amount
- $5,500.00
- $1,000.00
- $4,000.00
- $4,000.00
Discussion
On the first day of classes, September 1, the student received the following disbursements to their student account:
- label
- Pell Grant:
- Net Direct Subsidized Loan:
- FSEOG:
- State Grant:
- Amount
- $2,750.00
- $1,930.00
- $2,000.00
- $500.00
The student is in the third year of their program. Over the summer between their second and third year, the student developed and submitted a new product idea to a company. In October, the student received an offer for employment and immediately accepted it. They ceased attendance in all courses without notifying anyone at the school that they were leaving.
Instructors at the school must report a last date of attendance (LDA) whenever they submit a non-passing grade, and those dates appear on a report provided to the financial aid office at the end of each grading period, indicating the Title IV recipients who failed to earn a passing grade in any of their classes.
On December 16, after grades have been submitted for the fall semester, the school ran the report that identified Title IV recipients who failed to earn a passing grade in any of their classes. When the financial aid office received and evaluated the report for the fall semester, it found that the student’s LDA was October 10. Because they did not provide official notification of their withdrawal, they are considered an unofficial withdrawal.
Solution
The institution’s date of determination that the student withdrew is the date the financial aid office received and processed the report. The institution’s date of determination that the student withdrew = December 16.
Note: For a student who withdraws without providing notification to a non-attendance taking school, the school must determine the withdrawal date no later than 30 days after the end of the earlier of (1) the payment period or the period of enrollment (as applicable), (2) the academic year, or (3) the student’s educational program.
Step 1: Student’s Title IV Aid Information
Box A.
The school enters the following data in Step 1.
Title IV grant aid disbursed
- Box A grants
- Pell Grant:
- FSEOG:
- A. =
- Box A total
- $2,750.00
- $2,000.00
- $4,750.00
Box B.
Net Title IV loans disbursed, Subsidized Direct Loan = $1,930.00.
Box C.
Title IV grants that could have been disbursed = $0.00.
Box D.
Net Title IV loans that could have been disbursed = $0.00.
Box E.
Total Title IV aid disbursed for the payment period = A + B = $4,750.00 + $1,930.00 = $6,680.00.
Box F.
Total Title IV grant aid disbursed and could have been disbursed for the payment period = A + C = $4,750.00 + $0.00 = $4,750.00.
Box G.
Total Title IV aid disbursed and could have been disbursed for the payment period = A + B + C + D = $4,750.00 + $1,930.00 + $0.00 + $0.00 = $6,680.00.
Step 2: Percentage of Title IV Aid Earned
Because the student did not officially withdraw and the school is a non-attendance taking institution, it may use either the midpoint of the payment period or the student’s last date of attendance in an academically related activity as the withdrawal date. The school elects to choose the midpoint of the period as the withdrawal date.
-
Payment period start date = September 1
-
Payment period end date = December 9
-
Date of withdrawal = October 201
-
Percentage of payment period completed
-
Number of calendar days completed = 502
-
Number of calendar days in the payment period = 100
-
50 days ÷ 100 days = 0.5000. Percentage of payment period completed = 50.0%
-
Box H.
Because this percentage is less than or equal to 60%, the percentage of Title IV aid earned in Box H = 50.0%.
Step 3: Amount of Title IV Aid Earned by the Student
Box I.
50.0% (Percentage of Title IV aid earned from Box H) X $6,680.00 (Total of the Title IV aid disbursed and that could have been disbursed for the payment period or period of enrollment from Box G) = $3,340.00. Amount of Title IV aid earned by the student = $3,340.00.
Step 4: Total Title IV Aid to be Disbursed or Returned
Box J.
Because the total Title IV aid earned (Box I) is less than the aid disbursed (Box E), no PWD is due, and we proceed to Box K. PWD = N/A.
Box K.
Because the total Title IV aid disbursed (Box E) is greater than the total Title IV aid earned (Box I), Title IV aid must be returned.
$6,680.00 (Box E) – $3,340.00 (Box I) = $3,340.00. Title IV Aid to be returned = $3,340.00.
Step 5: Amount of Unearned Title IV Aid Due from the School
Box L.
Institutional charges for the payment period or period of enrollment = $6,500.00.
- labels
- Tuition and fees:
- Housing:
- Food:
- Books:
- dollar amount
- $4,000.00
- $1,000.00
- $1,000.00
- $500.00
Box M.
Subtract the percentage of Title IV earned from Box H (50.0%) from 100.0%. 100% – 50.0% = 50.0%. Percentage of Title IV aid unearned = 50.0%.
Box N.
Calculate the amount of unearned charges. $6,500.00 (institutional charges from Box L) X 50% (% of Title IV aid unearned from Box M) = $3,250.00.
Amount of unearned institutional charges = $3,250.00.
Box O.
Compare the amount of Title IV aid to be returned (Box K) to unearned institutional charges (Box N), and enter the lesser amount in Box O.
- labels
- Box K =
- Box N =
- dollar amount
- $3,340.00
- $3,250.00
Amount of unearned Title IV aid due from the school = $3,250.00.
Step 6: Return of Funds by the School
Box P.
The only Title IV loan disbursement the student received was a Subsidized Direct Loan disbursement of $1,930.00. Since $1,930.00 is less than $3,250.00 (Box O) the school must return the entire $1,930.00. Box P = $1,930.00.
After the school returns $1,930.00 to the Direct Loan program, $1,320.00 remains to be returned by the school ($3,250 (from Box O) – $1,930 (from Box P)). The student received $2,000.00 in Pell Grant funds, so the school returns $1,320.00 to the Pell Grant Program.
Step 7: Initial Amount of Unearned Title IV Aid Due from Student
Box Q.
Subtract the amount of Title IV aid the school must return ($3,250.00 from Box O) from the total amount of Title IV aid that is to be returned ($3,340.00 from Box K) to find the initial amount of Title IV aid due from the student. $3,340.00 – $3,250.00 = $90.00.
Step 8: Repayment of the Student’s Loans
Box R.
Subtract the Total Loans the school must return ($1,930.00 from Box P) from the net loans disbursed to the student ($1,930.00 from Box B) to find the total of the loans the student must repay $1,930.00 – $1,930.00 = $0.00.
Step 9: Grant Funds to be Returned
Box S.
Initial amount of Title IV grants for the student to return
Subtract the amount of loans to be repaid by the student ($0.00 from Box R) from the initial amount of unearned aid due from the student ($90.00 from Box Q) to find the initial amount of Title IV grants for the student to return. $90.00 – $0.00 = $90.00.
Box T.
Amount of grant protection
Multiply the total of Title IV grant aid disbursed or that could have been disbursed for the payment period or period of enrollment ($4,740.00 from Box F) by 50.0%. $4,750 X 50.0% = $2,375.00.
Box U.
Title IV grant funds for the student to return
Subtract the amount of grant protection ($2,375.00 from Box T) from the initial amount of Title IV grants for the student to return ($90.00 from Box S) to find the Title IV grant funds for the student to return. $90.00 – $2375.00 = -$2,285.001.
Case Study 4:
In this case study scenario, a student unofficially withdraws from a proprietary school that measures academic progress in clock hours. The student has been disbursed Title IV grants and loans.
Learning Objectives
Learn to complete Steps 1–8 of the Clock-Hour R2T4 worksheet and be able to:
-
determine withdrawal date for student who did not provide notification of intent to withdraw at a school required to take attendance;
-
determine the scheduled clock hours;
-
calculate the percentage of the period of enrollment the student completed;
-
calculate both the percentage and the amount of Title IV aid earned by the student;
-
determine if the student is due a PWD of Title IV aid or if Title IV aid must be returned to the Department; and
-
determine the amount of any PWD due to the student or any amount that must be returned to the Department.
Academic Year:
900 clock hours, 30 weeks
Payment Period Length:
450 clock hours, 15 weeks
Period of Enrollment Start Date:
January 8
Period of Enrollment End Date:
August 3
Institutionally Scheduled Break:
None
Required to Take Attendance:
Yes
Method for Matching FSEOG:
None
Period used in Return calculation:
Period of Enrollment
The student enrolled in a 900 clock-hour, 30-week program. The first payment period is 450 clock hours. Charges to the student’s account are as follows:
- label
- Tuition and fees:
- Housing:
- Food:
- Books and Supplies:
- School Authorized to Credit Account for Other Charges:
- dollar amount
- $8,000.00/30-week program
- $ non-residential program
- $ non-residential program
- $500.00/program
- Yes (all charges)
The student’s financial aid package included the following annual awards:
- labels
- Pell Grant
- Subsidized Direct Loan
- dollar amount
- $4,000.00
- $3,500.00
Discussion
On the first day of the winter period, January 8, the student received the following disbursements to their student account:
- grant/loan
- Pell Grant:
- Net Subsidized Direct Loan:
- dollar amount
- $2,000.00
- $1,700.00
On January 26 the school discovered the student hadn’t been attending classes and didn’t plan on returning. The Director of Student Services notified the financial aid office that the student’s last date of attendance was January 17 (through which time the student was scheduled to have attended 45 hours), and the financial aid office began the withdrawal process and required calculations.
Solution
The date of the institution’s determination that the student withdrew (January 26) is the date the financial aid office received the information from the Director of Student Services. Because the school is required to take attendance, the student’s withdrawal date is his last date of attendance at an academically related activity, January 17.
Step 1: Student’s Title IV Aid Information
Box A.
Title IV grant aid disbursed
Pell Grant:
A. =
$2,000.00
$2,000.00
Box B.
Net Title IV loans disbursed
Net Subsidized Direct Loan
B. =
$1,700.00
$1,700.00
Box C.
Because the school uses the period of enrollment as the basis for its R2T4 calculation, the $2,000 in Pell funds the student was scheduled to receive once they had completed the first payment period is included as Title IV grants that could have been disbursed.
C. =
- Box C total
- $2,000.00
Box D.
Because the school uses the period of enrollment as the basis for its R2T4 calculation, the $1,700 in Subsidized Direct Loan funds the student was scheduled to receive once they had completed the first payment period is included as Title IV loans that could have been disbursed.
D. =
- Box D total
- $1,700.00
Box E.
Total Title IV aid disbursed for the period = A + B = $2,000.00 + $1,700.00 = $3,700.00.
Box F.
Total Title IV grant aid disbursed and that could have been disbursed for the period = A + C = $2,000.00 + $2,000.00 = $4,000.00.
Box G.
Total Title IV aid disbursed and that could have been disbursed for the period = A + B + C + D = $2,000.00 + $1,700.00 + $2,000.00 + $1,700.00 = $7,400.00.
Step 2: Percentage of Title IV Aid Earned
Because the school is required to take attendance by an outside agency, it must use the last date of the student’s attendance in an academically related activity as determined from its attendance records as the withdrawal date. The student’s last date of attendance was January 17.
-
Period of enrollment start date = January 8.
-
Period of enrollment end date = August 3.
-
Date of school’s determination that student withdrew = January 26.
-
Withdrawal date = January 17.
Box H.
Percentage of period completed
Only scheduled hours are used to determine the percentage of the period completed by a student withdrawing from a clock-hour program. The percentage of the period completed by a student in a clock-hour program is determined by dividing the number of clock hours the student was scheduled to complete as of the withdrawal date in the period by the total clock hours in the period.
-
Number of clock hours the student was scheduled to complete by January 17 = 45.
-
Number of clock hours in the period of enrollment = 900.
-
45 clock hours ÷ 900 clock hours = 0.050.
Percentage of the period completed = 5.0%.
Because this percentage is less than or equal to 60%, you enter that percentage in Box H = 5.0%.
Step 3: Amount of Title IV Aid Earned by the Student
Box I.
5.0% (Percentage of Title IV aid earned from Box H) X $7,400.00 (Total of the Title IV aid disbursed and could have been disbursed for the period from Box G) = $370.00. The amount of Title IV aid earned by the student = $370.00.
Step 4: Total Title IV Aid to be Disbursed or Returned
Box J.
Because the total Title IV aid earned (Box I) is less than the total Title IV aid disbursed (Box E), no PWD is due, and we proceed to Box K.
PWD = N/A
Box K.
Because the total Title IV aid disbursed (Box E) is greater than the total Title IV aid earned (Box I) Title IV aid must be returned.
$3,700.00 (Box E) – $370.00 (Box I) = $3,330.00. The amount of Title IV Aid to be returned = $3,330.00.
Step 5: Amount of Unearned Title IV Aid Due from the School
Box L.
Institutional charges for the period = $8,500.00.
- labels
- Tuition and fees:
- Books & Supplies:
- amount
- $8,000.00
- $500.00
Box M.
Subtract the percentage of Title IV earned from Box H (5.0%) from 100.0%. 100% – 5.0% = 95.0%. The percentage of unearned Title IV aid = 95.0%.
Box N.
Calculate the amount of unearned charges. $8,500.00 (institutional charges from Box L) X 95% (Percentage of Title IV aid unearned from Box M) = $8,075.00.
Amount of unearned institutional charges = $8,075.00.
Box O.
Compare the amount of Title IV aid to be returned (Box K) to unearned institutional charges (Box N), and enter the lesser amount in Box O.
- box names
- Box K =
- Box N =
- amount
- $3,330.00
- $8,075.00
Amount of unearned Title IV aid due from the school = $3,330.00.
Step 6: Return of Funds by the School
Box P.
The only Title IV loan disbursement that the student received was a Subsidized Direct Loan disbursement of $1,700.00. Since $1,700.00 is less than the $3,330.00 (Box O) the amount for the school to return, the school must return the entire $1,700.00 to the Direct Loan Program.
P =
- Box P total
- $1,700.00
After the school returns $1700.00 to the Direct Loan program, the remaining balance to be returned by the school is $1,630.00 ($3,330.00 [from Box O] – $1700.00 [from Box P]). Since the student received $2,000.00 in Pell Grant funds, the school returns the $1,630.00 to the Pell Grant Program.
The school must return any unearned funds within 45 days from the date of the institution’s determination that the student withdrew.
Step 7: Initial Amount of Unearned Title IV Aid Due from Student
Box Q.
Subtract the amount of Title IV aid the school must return ($3,330.00 from Box O) from the total amount of Title IV aid that is to be returned ($3,330.00 from Box K) to find the initial amount of Title IV aid due from the student. $3,330.00 – $3,330.00 = $0.00.
Because Box Q is $0.00, no further calculation is needed.
Case Study 5:
In this case study scenario, a student unofficially withdraws from a school that measures progress in clock hours. The student has been disbursed Title IV grants and loan funds.
Learning Objectives
Learn to complete Steps 1–8 of the Clock-Hour R2T4 worksheet and be able to:
-
determine withdrawal date for student who did not provide notification of intent to withdraw at a school required to take attendance;
-
determine the scheduled clock hours;
-
calculate the percentage of the payment period the student completed;
-
calculate both the percentage and the amount of Title IV aid earned by the student;
-
determine if the student is due a PWD of Title IV aid or if Title IV aid must be returned to the Department;
-
prorate the student’s charges to determine the correct amount of institutional charges for the payment period;
-
determine whether the cost of unreturned equipment can be excluded; and
-
determine the amount of any PWD due to the student or any amount that must be returned to the Department.
Academic Year: |
|
Payment Period Length: |
|
Payment Period Start Date: |
|
Payment Period End Date: |
|
Institutionally Scheduled Break: |
|
Required to Take Attendance: |
|
|
|
Period Used in Return Calculation: |
|
The student enrolled at the school for a 26-week program of study consisting of 900 clock hours offered over 26 weeks. The first payment period is 450 clock hours. Charges to the student’s account are as follows:
- Account Line Items
- Tuition and fees:
- Housing:
- Food:
- Books and Supplies:
- Account Line Items Cost
- $6,000.00/26-week program
- non-residential program
- non-residential program
- $500.00/program
The student’s financial aid package included the following annual awards:
- label
- Pell Grant:
- Subsidized Direct Loan:
- dollar amount
- $4,000.00
- $3,500.00
Discussion
On the first day of the period, April 3, the student received the following disbursements to their student account:
- label
- Pell Grant:
- Net Subsidized Direct Loan:
- amount
- $2,000.00
- $1,700.00
On May 1, the Retention Specialist at the school is informed by the director of the student’s program that since April 20, the student has not been attending classes. The Retention Specialist contacts the student who tells them that they’ve been ill but plans on coming back to school during the next week. Since this falls within the time period for excused absences allowed by school policy, as well as absences allowed by the state and the school’s accrediting agency, the school delays taking any action. However, on May 8 when the Retention Specialist follows up with the Program Director, they find that the student has not returned to school. The student has now exceeded the number of absences allowed by school policy and must be administratively withdrawn from school.
Note: Remember that institutions that are required to take attendance are expected to have a procedure in place for routinely monitoring attendance records to determine in a timely manner when a student withdraws. Except in unusual instances, the date of the institution’s determination that the student withdrew should be no later than 14 days from the student’s last date of attendance.
The institution is not required to administratively withdraw a student who has been absent for 14 days. However, after 14 days, it is expected to have determined whether the student intends to return to classes or has withdrawn. Moreover, the institution must return any unearned funds within 45 days after the date of the institution’s determination that the student withdrew (May 4).
As part of the student’s enrollment agreement, the school provided the student with a kit that included all the books and supplies that they would need throughout the entire program . The kit is returnable, but the student failed to return the kit after they withdrew.
Solution
The student’s withdrawal date is his last date of attendance as determined from the school’s attendance records, April 20.
The school must use May 4 (14 days after the student’s last date of attendance) as the date of determination that the student withdrew.
Step 1: Student’s Title IV Aid Information
Box A.
Title IV grant aid disbursed –
Pell Grant:
A. =
$2,000.00
$2,000.00
Box B.
Net Title IV loans disbursed –
Subsidized Direct Loan =
B. =
$1,700.00
$1,700.00
Box C.
Title IV grants that could have been disbursed = $0.00.
Box D.
Title IV loans that could have been disbursed = $0.00.
Box E.
Total Title IV aid disbursed for the payment period = A + B = $2,000.00 + $1,700.00 = $3,700.00.
Box F.
Total Title IV grant aid disbursed and that could have been disbursed for the payment period = A + C = $2,000.00 + $0.00 = $2,000.00.
Box G.
Total Title IV aid disbursed and could have been disbursed for the payment period = A + B + C + D = $2,000.00 + $1,700.00 + $0.00 + $0.00 = $3,700.00.
Step 2: Percentage of Title IV Aid Earned
Because the school is required to take attendance by an outside agency, the school must use the student’s last date of attendance in an academically related activity as determined from its attendance records as the withdrawal date. The student’s last date of attendance was April 20.
-
Payment Period start date = April 3.
-
Payment Period end date = June 30.
-
Date of withdrawal = April 20.
Box H.
Percentage of payment period completed
Only scheduled hours are used to determine the percentage of the period completed by a student withdrawing from a clock-hour program. The percentage of the period completed by a student is determined by dividing the number of hours the student was scheduled to complete in the payment period or period of enrollment as of the student’s last date of attendance, by the total number of clock hours in the same period.
-
Number of clock hours the student was scheduled to complete by April 20 = 90
-
Number of clock hours in the payment period = 450
-
90 clock hours ÷ 450 clock hours = 0.20
Percentage of payment period completed = 20.0%
Because this percentage is less than or equal to 60%, the percentage of Title IV aid earned in Box H = 20.0%.
Step 3: Amount of Title IV Aid Earned by the Student
Box I.
20.0% (percentage of Title IV aid earned from Box H) X $3,700.00 (Total of the Title IV aid disbursed and that could have been disbursed for the payment period or period of enrollment from Box G) = $740.00. Amount of Title IV aid earned by the student = $740.00.
Step 4: Total Title IV Aid to be Disbursed or Returned
Box J.
Because the total Title IV aid earned (Box I) is less than the total Title IV aid disbursed (Box E), no PWD is due, and we proceed to Box K.
PWD = N/A
Box K.
Because the total; Title IV aid disbursed (Box E) is greater than the total Title IV aid earned (Box I), Title IV aid must be returned.
$3,700.00 (Box E) – $740.00 (Box I) = $2,960.00. Title IV Aid to be Returned = $2,960.00.
Step 5: Amount of Title IV Aid Due from the School
Box L.
Total institutional charges for the payment period
Before entering data in Step 5, Part L, of the R2T4 a school that charges by the period of enrollment but performs its R2T4 on a payment period basis must determine whether it must enter: (a) the prorated amount of all institutional charges, or (b) the amount the school retained. To do this, first, the school prorates all institutional charges. Then, the school determines the amount actually retained. The school compares the two results and enters in Step 5, Part L, the greater of the two amounts (per the provisions in 34 CFR 668.22(g)(3)(ii)). The school did not obtain an authorization to retain funds in excess of the prorated amount. Therefore, in this case the amount retained and the prorated amount are the same. The school enters $250.00 as the charge for books and supplies.
Prorated Charges
- labels
- Tuition and fees:
- Books & supplies:
- amount
- $3,000.00
- $250.00
Total initial prorated institutional charges for the payment period = $3,250.00.
Now, the school determines whether it can exclude the cost of the student’s kit from the amount it enters in Step 5, Part L. The equipment was returnable, but the student did not return it in good condition within 20 days of withdrawing. Since a school may exclude from institutional charges the documented cost to the school (what the school paid for the items) of unreturnable equipment and returnable equipment not returned in good condition, the school can exclude the documented cost of the kit from the student’s total institutional charges for the payment period. When the school originally purchased the kit, it documented that the kit cost was $300.00, so it excludes $300.00 from institutional charges, resulting in an adjusted final total of $2,950.00 ($3,250.00 –300.00) that the school will enter in Step 5, Part L.
L =
- Box L total
- $2,950.00
Box M.
Subtract the percentage of Title IV earned from Box H (20.0%) from 100.0%. 100% – 20.0% = 80.0%. percentage of Title IV aid unearned = 80.0%.
M =
80.0%
Box N.
Calculate the amount of unearned charges. $2,950.00 (institutional charges from Box L) X 80% (percentage of Title IV aid unearned from Box M) = $2,360.00.
N =
$2,360.00
Box O.
Compare the amount of Title IV aid to be returned (Box K) to unearned institutional charges (Box N), and enter the lesser amount in Box O.
- box letter
- Box K =
- Box N =
- amount
- $2,960.00
- $2,360.00
O = $2,360.00
Step 6: Return of Funds by the School
Box P.
The student received a Subsidized Direct Loan disbursement of $1700.00. Since $1,700.00 is less than the $2,360.00 (Box O) the school must return $1,700.00 to the lender. Box P = $1,700.00.
After the school returns $1,700.00 to the Title IV loan programs, the balance to be returned by the school is $660.00 ($2,360.00 [from Box O] – $1,700.00 [from Box P]). The student received $2,000.00 in Pell Grant funds, so the school returns $660.00 to the Pell Grant Program.
The school must return any unearned funds within 45 days from its date of determination that the student withdrew (May 4).
Step 7: Initial Amount of Unearned Title IV Aid Due from Student
Box Q.
Subtract the amount of Title IV aid the school must return $2,360.00 from Box O) from the total amount of Title IV aid that is to be returned ($2,960.00 from Box K) to find the initial amount of Title IV aid due from the student. $2,960.00 – $2,360.00 = $600.00.
Q =
$600.00
Step 8: Repayment of the Student’s Loans
Box R.
Subtract the total loans the school must return ($1,700.00 from Box P) from the net loans disbursed to the student ($1,700.00 from Box B) to find the total of the loans the student must repay $1,700.00 – $1,700.00 = $0.00.
R =
$0.00
Box S.
Subtract the amount of loans to be repaid by the student in Box R ($0.00) from the initial amount of unearned Title IV aid due from the student Box Q ($600.00) to find the initial amount of Title IV grants for the student to return $600.00 – $0.00 = $600.00.
S =
$600.00
Box T.
Multiply the total Title IV grant aid disbursed and could have been disbursed for the period in Box F ($2,000.00) by 50% to find the amount of grant protection.
$2,000.00 X 50% = $1,000.00.
T =
$1,000.00
Box U
Subtract the amount of grant protection in Box T ($1,000.00) from the initial amount of Title IV grants for the student to return in Box S ($600.00) to find the Title IV grants for the student to return $600.00 – $1,000.00 = – $400.00.
U =
$-400.00
Since the amount in Box U is less than or equal to zero, the student does not have to return any Title IV grant funds, and the calculation is complete.