Return of Title IV Funds Policy

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Federal Financial Aid Return Policy

Federal student aid is awarded with the expectation that students will attend and participate in classes.  Federal student aid is earned day-by-day through class attendance and course participation. The purpose of the Return of Title IV Funds (R2T4) requirements is to ensure that federal funds are only kept for the portion of the term you actually complete.

Covered Federal Aid Programs

  • Federal Pell Grant
  • Federal Supplemental Educational Opportunity Grant (FSEOG)
  • Direct Subsidized & Unsubsidized Loans
  • Direct Parent PLUS Loans

Key Policy Rules

  • Earning Your Aid - Financial aid is disbursed under the assumption you will complete the full term. Aid is earned proportionally as you attend classes.
  • The 60% Threshold - If you officially or unofficially withdraw before completing more than 60% of the payment period, a calculation must be performed to determine how much aid you earned.
  • Returning Unearned Aid -  Any portion of aid deemed "unearned" must be returned to the U.S. Department of Education, which may result in a balance due on your student account.
  • Attendance Verification - To maintain compliance and protect program integrity, the college closely monitors the last documented dates of attendance and enrollment updates.

The underlying principle of R2T4 is that federal financial aid is earned over time as a student attends and participates in their courses. Therefore, students who do not complete the payment period may not be eligible to retain all the Title IV funds that were originally disbursed on their behalf.

Student Example: Leah withdraws 22 days into the semester:

  • Semester length: 110 days
  • Federal Pell Grant: $3,700
  • FSEOG: $500
  • Direct Subsidized Loan: $1,750
  • Total Title IV Aid: $5,950
  • Withdrawal date: Day 22

R2T4 Calculation
Percentage of payment period completed: 22 ÷ 110 = 20%
Percentage of aid earned: 20%
Percentage of aid unearned: 100% – 20% = 80%
Earned aid: $5,950 × 20% = $1,190
Unearned aid: $5,950 × 80% = $4,760

Because Leah withdrew before completing 60% of the semester, our office must perform an R2T4 calculation and return the unearned portion of Title IV aid in accordance with federal regulations. This may result in Leah owing a balance to Spelman.

A simple way to explain R2T4 is: Federal financial aid is earned over the course of the semester. If you withdraw before completing more than 60% of the term, some of your financial aid may have to be returned. As a result, you could owe money to the school even if you previously received a financial aid refund.

Institutional Responsibility
An eTrieve workflow document, generated by the student and approved by the Office of the Registrar, identifies students who have completely withdrawn from the college. The Registrar's office records and publishes the official date of withdrawal.

The percentage of the period that the student remained enrolled in is derived by dividing the number of days the student attended by the number of days in the term. The withdrawal date is:

  • The date the student notified the institution of intent to withdraw (initiation of withdrawal process) or
  • The midpoint of the term for a student who leaves without notifying the institution of their intent to withdraw.

Spelman College is required to document last dates of attendance, unofficial withdrawals, and enrollment changes accurately. These records support compliance with federal regulations, ensure the proper administration of Title IV funds, and help prevent fraud, abuse, and improper payments.

  • All required R2T4 calculations will be completed, and necessary funds returned to the Title IV programs, as soon as possible, but within 45 days of the date of notification of a student withdrawal.
  • Students are notified of return amounts by way of their Spelman email address.

Unofficial Withdrawal Policy – Non-Attendance
Financial aid is awarded under the assumption that you will attend and participate in your classes for the entire term. If you stop attending classes without submitting an official withdrawal, you have unofficially withdrawn. Unofficial withdrawals can significantly reduce your financial aid eligibility and leave you with a balance owed to the college.

Determining Your Unofficial Withdrawal Date
The withdrawal date determines how much financial aid you earned versus what must be returned:

  • Extenuating Circumstances - If an illness, accident, or emergency prevented you from officially withdrawing, your withdrawal date will be the date you were no longer able to attend.
  • All Other Unofficial Withdrawals - If no official notice or attendance records exist, federal rules define your withdrawal date as the midpoint (50%) of the term, unless specific attendance records indicate a different date.

Attendance Verification at the End of the Term
At the end of each semester, the Financial Aid Office reviews students who failed to earn a passing grade in any course. We contact instructors to verify your last date of attendance at an academically related activity, which includes:

  • Taking exams, quizzes, or tutorials
  • Submitting academic assignments, papers, or projects
  • Attending required, attendance-tracked study groups
  • Participating in computer-assisted instruction or academic advising

If an instructor cannot confirm your participation, you will be processed as an unofficial withdrawal using either the midpoint of the term or the last recorded date of attendance provided by your professor.

Returning Unearned Aid and Notifications

  • Processing Timeline: Aid adjustments for unofficial withdrawals are processed within 45 calendar days after the end of the term.
  • Calculations: The Office of Financial Aid and the Office of Student Accounts (Bursar) review and process all calculations to ensure accuracy. Any returned aid will be canceled from your account, which may result in a bill you must pay.
  • Email Notification: The Office of Financial Aid will notify students of their withdrawal status and the amount of unearned funding to be returned.

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