Withdrawal And Return of Title IV Funds (R2T4) Policy

Capital University’s Responsibility as it relates to R2T4 processing:

1. To provide students with the information in this policy.
2. To identify students affected by this policy and completing the Return of Title IV Funds (R2T4) calculation.
3. To inform the student of the result of the R2T4 calculation and any balance owed to the University because of a required return of funds.
4. To return any unearned Title IV aid that is due to the Title IV programs and, if applicable, notifying the borrower's holder of federal loan funds of the student's withdrawal date.
5. To notify student and/or PLUS loan borrower of eligibility for a Post‐Withdrawal Disbursement (PWD), if applicable.

Student's responsibilities as it relates to R2T4 processing:

1. Becoming familiar with the R2T4 policy and how withdrawing from all courses affects eligibility for Title IV aid.
2. Notifying the Capital University of intent to withdrawal prior to ceasing enrollment.
3. Resolving any outstanding balance owed to the University resulting from a required return of unearned Title IV aid.
4. Resolving any repayment to the U.S. Department of Education as a result of an overpayment of Title IV grant funds.

Students who receive federal financial aid must remain in their registered classes to “earn” the aid they originally received. The amount of federal aid earned is based on a prorated formula. Students who withdraw, or do not complete all classes in which they were enrolled, may be required to return some of the aid originally awarded to the student. Institutions, in accordance with federal regulation 34 CFR 668.22, are required to determine the percentage of federal aid “earned” and return the “unearned” portion to the appropriate federal aid programs.

The following explains the formula used to determine the percentage of unearned aid to be returned to the federal government (the number of calendar days completed up to the withdrawal date divided by the total number of calendar days in the enrollment period):

Calendar days completed/Total number of days in the semester = Percent Earned

Note: Breaks of 5 days or more are not included in the count of total days in semester (denominator).

This calculation must be performed within 30 days of the date the school determines that a student has completely withdrawn.

The institution must return the unearned funds within 45 days of the calculation.

When calculating the percentage the student completed in the semester, if a student attended more than 60% of the period of enrollment, the student is considered to have earned 100% of the Title IV funds the student was scheduled to receive during that period.

The institutional charges used in the calculation are the charges initially assessed the student’s account for the semester. Initial charges may only be adjusted by those changes the institution made prior to the student’s withdrawal. Examples include, but are not limited to:

• Tuition
• Mandatory fees
• Course fees
• Room and board (if contracted within the school)

The charges excluded from institutional charges for the period of enrollment include, but are not limited to:

• Parking permits
• Library fees
• Late payment fe

Students who do not begin attendance in their scheduled classes are not eligible for federal financial aid and any aid originally received must be returned.

• The student provides a notification of intent to withdraw and completes a withdraw from. The student’s withdraw date is the date the student began the institution’s official withdrawal process or officially notified the institution of their intent to withdraw.
• The Registrar’s office forwards copies of the form to Financial Aid, Housing, Student Accounts, etc.
• The Registrar updates Colleague and enters the date of the withdrawal.
• Financial Aid completes an R2T4 calculation to determine the amount of federal financial aid the student earned.
• Financial Aid returns funds to the federal programs, in the order according to federal regulations, on the student’s behalf.
• Financial Aid sends an e-mail notification to the student’s primary e-mail address (non-.edu) indicating the outcome of the R2T4 calculation including additional information regarding repayment, Satisfactory Academic Progress, and exit counseling, as applicable.
• The student is responsible for any charges resulting from an R2T4 calculation.

Capital University is not required to take attendance. Therefore, if the student has not earned a passing grade in any class and, in conjunction with Registrar's Office, is unable to determine the last date of attendance, Financial Aid will use the 50% point of the period of enrollment as the withdrawal date.

At the end of the semester and after grades are officially posted, the Registrar’s office identifies students that did not earn a passing grade. For students who received one or more F or FS grades, a determination must be made with the faculty to identify if the student earned the F grade, if the student stopped attending, or never attended.

• If at least one F grade is determined to have been earned, Financial Aid will not complete a R2T4 calculation because it was confirmed the student attended through the semester and earned the F grade.
• If it is not determined to be an earned F in at least one class, Financial Aid will consider the student as an unofficial withdrawal because the student did not successfully complete at least one course in the semester. The 50% point will be utilized as the withdrawal date for these students.
• If it is determined that one or more FS grades listed are for courses the student never attended, the Financial Aid will recalculate the student’s financial aid prior to completing the R2T4 calculation. Likewise, if it cannot be determined that the student began a single course, 100% of aid will be returned since the student never began classes.

Capital University must return Title IV funds to the financial aid programs from which the student received aid during the semester, in the following order, up to the net amount disbursed from each source:

• Federal Direct Unsubsidized Loan
• Federal Direct Subsidized Loan
• Federal Direct PLUS Loan
• Federal Pell Grant
• Iraq and Afghanistan Service Grants
• Federal Supplemental Educational Opportunity Grant (FSEOG)
• Teacher Education Assistance for College and Higher Education (TEACH) Grant

The loan grace period begins on the withdrawal date from the school or when a student ceases to be enrolled at least half-time. If the student does not re-enroll as a half-time student within 6 months of withdrawal or less than half-time enrollment, the loan(s) enters repayment. The promissory note signed by the borrower outlines the repayment obligations. The student should contact his/her loan servicer to make repayment arrangements.

A post-withdrawal disbursement (PWD) may be required if the total amount of the Title IV aid earned as of the withdrawal date is more than the amount that was disbursed to the student (e.g. in the case where a student withdraws prior to the first disbursement date of the semester).

To be eligible to receive a PWD, students must have a complete financial aid file (verification completed and all tracking requirements satisfied) and meet all eligibility requirements.

Grants from a PWD may be credited directly to the student’s account without obtaining student permission. However, it may only be credited for tuition, fees, and housing and food (if the student contracts with the school). Capital University must obtain the student’s authorization to credit a student’s school account for charges other than current charges.

The University must obtain confirmation from the student, or from a parent for a Direct Parent PLUS Loan, before making any disbursement of loan funds. Also, for a Direct Loan, the institution must have originated the loan prior to the withdrawal. All terms of repayment apply as outlined in the Master Promissory Note.

Students who owe the U.S. Department of Education for an overpayment of Title IV funds are not eligible for any additional federal financial aid until the overpayment is paid in full or payment arrangements have been made with the U.S. Department of Education.

Students who owe Capital University because of an R2T4 calculation will be placed on a financial hold by Student Accounts. Students will not be allowed to register for subsequent semesters until the balance is paid in full, or until payment arrangements have been made with Student Accounts.

A withdrawal may affect a student’s completion rate. Please refer to Capital University’s Satisfactory Academic Progress (SAP) policies for additional information.

• The College will return any unearned Title IV funds it is responsible for returning within 45 calendar days of the date the University determined the student withdrew.
• The College will offer any post-withdrawal disbursement of loan funds within 30 calendar days of the date of determination.
• Students will have 14 days after the offer of any post-withdrawal disbursement to accept any loan funds.
• If the withdrawal calculation results in a Title IV credit balance (a credit created entirely by Federal Title IV funds), the school is required to refund the credit balance to the student as soon as possible and within 14 days from the date the R2T4 calculation is completed.

Students who withdraw during the first six weeks of the semester will have their Capital and State aid returned at the same percentage rate as the tuition is refunded; for example, if a student receives a 75% refund of tuition, 75% of institutional aid will be returned to the institutional funds and State of Ohio funds will be returned to the Ohio Department of Higher Education.

For students who withdraw after the first six weeks of the semester, no Capital or State aid is returned.