Title IV Federal Student Aid Repayment Policy Effective Fall 2000
The Higher Education Act of 1998 resulted in the policy for Return of Title IV Funds (R2T4). Federal financial aid recipients who completely withdraws, officially or unofficially, or fails to earn any passing grades for the semester, may be required to repay unearned portions of their federal financial aid received. Federal law states that federal student aid is to be awarded under the assumption students will attend school for the entire term (payment period).
Types of Withdrawals
For official withdrawals, the withdrawal date is the date that the student begins the official withdrawal process or provides notification to the designated office of his, her, or their intent to withdraw. The College will return unearned portions of the Title IV program funds within 45 days of the date of determination.
For unofficial withdrawals, the withdrawal date is the midpoint of the student’s payment period or the last day of active participation (LDA) reported by the instructor and recorded in the student information system. The College will return unearned portions of the Title IV program funds 30 days from the end of the payment period. Students who withdraw from all current courses but have future starting courses within the same term (payment period) for which they have not begun attendance must affirm in writing to the College that they plan on beginning attendance in later starting course(s) within fourteen days of stopping all current attendance.
Students who withdraw from all courses prior to completing more than 60% of the payment period or stop attending must have their aid eligibility recalculated based on the percent of the payment period completed. The R2T4 calculation is based on the total number of enrolled days divided by the total days in the payment period in which the student is enrolled. This recalculation may result in the student having to repay the federal government a percentage of the federal aid received. If the R2T4 calculation results in an amount to be returned that exceeds the school’s portion, the student must repay the calculated amount to the Department of Education (ED). Students who withdraw from all courses but are enrolled in future courses within the same term (payment period) must affirm in writing to the College that they plan on beginning attendance in later starting course(s) within fourteen (14) days of stopping all current attendance.
Pensacola State College is required to share in this repayment responsibility for the courses that the student began attending. The student will have to repay Pensacola State College the debt resulting from the student’s failure to earn the aid awarded by the due date. Unpaid debts will result in an overpayment of aid being reported to ED. Until both the debt to the College and the debt to the ED are repaid by the student no College transcript will be released, no additional enrollment will be processed, and no institutional, federal or state aid may be awarded or disbursed to the student. Students must pay the debt in full prior to future enrollment at Pensacola State College. Students will also lose their federal aid eligibility until they either repay the portion owed to the federal government or make repayment arrangements with the ED. All costs of collection including reasonable attorney fees will be the responsibility of the student.
The College will return unearned Title IV Aid within 45 days from the date of determination for official withdrawals and 30 days from the end of the payment period for unofficial withdrawals. The College must return in the following order the percentage of unearned aid to the Title IV programs:
- Unsubsidized Direct Stafford Loan
- Subsidized Direct Stafford Loan
- Direct PLUS Loan
- Federal Pell Grant
- Iraq and Afghanistan Service Grants
- Federal Supplemental Education Opportunity Grant (FSEOG)
In cases where the student may be eligible for a post-withdrawal disbursement due to a R2T4 recalculation, any earned portions that have not been disbursed to the student will be disbursed within 45 days for Federal Grants. Federal Loans if deemed eligible will be offered to the student within 30 days and allowing the student to accept or decline within 14 days. A credit balances on the student’s account will be disbursed to the student within 14 days of the funds being posted on the account.
Title IV recalculation is the law, there are no appeals.
Questions concerning this federal law, contact the Financial Aid, Veteran Services and Scholarships Office at 850-484-1680 or email fava@pensacolastate.edu.