Federal Return of Title IV Funds Policy (R2T4)

This policy applies to the following federal Title IV aid programs:

• William D. Ford Federal Direct Loans (Subsidized and Unsubsidized Stafford, PLUS, and Graduate PLUS)
• Federal Pell Grant
• Federal Supplemental Educational Opportunity Grant (FSEOG)

State grants (Washington College Grant, Opportunity Grant) and SPSCC institutional aid are governed separately by SPSCC's State Grant Enrollment Change and Refund Policy (STSV321) and Institutional Refund Policy (STSV322).

Withdrawal Date

The date a student officially notifies SPSCC of intent to withdraw, or the date the institution determines the student ceased attendance. See "Official Withdrawal" and "Unofficial Withdrawal" below.

Official Withdrawal

A withdrawal initiated by the student through the Enrollment Services Office. The withdrawal date is the date the student provides written or in-person notification of intent to withdraw.

Unofficial Withdrawal

A withdrawal that occurs when a student ceases attendance without notifying the institution. SPSCC determines the student's withdrawal date based on the last documented date of academically related activity. If no such date can be established, the withdrawal date defaults to the 50% point of the payment period. SPSCC must determine whether an unofficial withdrawal has occurred no later than 30 days after the end of the payment period. See the Withdrawal Date section for procedural details.

Determination Date

The date the institution determines that a student has withdrawn. For official withdrawals, this is the date the student notifies SPSCC. For unofficial withdrawals, this is the date SPSCC makes its determination, no later than 30 days after the end of the payment period.

Payment Period

The quarter during which a student is enrolled and for which Title IV aid has been disbursed.

Census Date

The date by which student enrollment is frozen for financial aid disbursement purposes. See the State Grant Enrollment Change and Refund Policy (STSV321) for its specific application to state grant programs.

Institutional Charges

Institutional charges are based on tuition and fees assessed for the payment period as of the student's withdrawal date.

Earned Aid

The portion of Title IV funds a student is considered to have earned, calculated as the percentage of the payment period completed multiplied by the total Title IV aid disbursed or that could have been disbursed.

Academically Related Activity

Includes exams, assignments, participation in class, or interaction with faculty regarding academic content. Logging into a learning management system (LMS) without documented academic participation does not qualify.

Title IV Aid

For R2T4 purposes, includes funds that were disbursed and funds that could have been disbursed as of the withdrawal date.

The Enrollment Services Office is the official office for initiating the withdrawal process.

Official Withdrawals

Students may initiate an official withdrawal as follows:

• Through the 8th instructional day of the quarter: Students may withdraw via their mySPSCC portal through ctcLink or emailing Enrollment Services (enroll@spscc.edu) or in-person at the One Stop counter in Building 22 (Main Campus).
• After the 8th instructional day through the 5th week of the quarter: Students must withdraw by emailing Enrollment Services (enroll@spscc.edu) or in-person at the One Stop in Building 22.
• Summer term: Students may withdraw through the 5th week of the summer term. The 60% point and all R2T4 calculations are adjusted proportionally to reflect the shorter payment period.

Unofficial Withdrawals

When a student ceases attendance without notification, SPSCC will determine the withdrawal date using the last documented date of academically related activity (e.g., an exam, submission, class participation, or academically related meeting). If no such date can be determined, the withdrawal date defaults to the 50% point of the payment period. Faculty attendance records and LMS data will be used to support this determination. SPSCC must make this determination no later than 30 days after the end of the payment period. Students who fail to earn a passing grade in any class may be evaluated for unofficial withdrawal using the last date of academically related activity.

Additional Circumstances

• If a withdrawal is due to accident, illness, or other extenuating circumstances, the withdrawal date is determined in relation to those circumstances as decided by the institution.
• If the student rescinds the withdrawal but subsequently does not complete the quarter, the withdrawal date is the original date of the initial withdrawal notification.

Complete Withdrawal

A student who completely withdraws from all classes is subject to the R2T4 calculation described in this policy.

Failure to Commence Attendance

A student who never commences attendance in any enrolled class is not subject to an R2T4 calculation; however, all Title IV funds disbursed must be returned in full. A student who commences attendance in some but not all classes will have their aid adjusted to reflect only classes in which attendance was commenced. This is an aid adjustment, not an R2T4 calculation.

Partial Enrollment Decreases (Overpayment)

A student who drops one or more courses but remains enrolled (does not completely withdraw) is not subject to R2T4. Adjustments for students who remain enrolled are processed as an overpayment and recalculation is based on enrollment intensity. See the State Grant Enrollment Change and Refund Policy (STSV321) for state grant census date rules.

SPSCC does not currently operate programs offered in modules. This section applies in the event modular courses are implemented, in accordance with 34 CFR §668.22(a)(2).

A student enrolled in a modular program is not considered withdrawn for R2T4 purposes if any of the following exemptions apply:

• The student has completed all requirements for graduation from their program.
• The student successfully completed one module or a combination of modules comprising 49% or more of the countable days in the payment period.
• The student successfully completed coursework equal to or greater than half-time enrollment for the payment period.
• The student provides written confirmation, at the time of ceasing attendance, that they will attend a module beginning later in the same payment period (and that module begins no later than 45 calendar days after the end of the module the student ceased attending).

Written confirmation of future attendance must be documented and retained. If the student provides written confirmation of future attendance but does not return, the student is considered withdrawn and the withdrawal date is the last date of academically related activity.

45-Day Rule: If a student who ceased attendance returns to a module within the same payment period within 45 days, the student is not considered withdrawn and no R2T4 calculation is required. Any R2T4 process initiated is reversed.

SPSCC returns the portion of unearned Title IV funds for which the institution is responsible in accordance with 34 CFR §668.22(h). Any remaining unearned funds are the responsibility of the student. SPSCC will complete the R2T4 calculation within 30 days of the Determination Date.

When a student completely withdraws within the first 60% of the quarter, SPSCC calculates the percentage of earned aid as follows:

1. The percentage of earned aid equals the number of calendar days completed in the payment period divided by the total number of calendar days in the payment period. Calendar days include weekends and exclude scheduled breaks of five or more consecutive days. The resulting percentage represents the portion of Title IV aid the student has "earned."
2. Students who completely withdraw after the 60% point are considered to have earned 100% of their Title IV aid and will not owe an R2T4 repayment.
3. The maximum grant overpayment a student may owe cannot exceed 50% of the total Title IV grant funds received for the payment period.
4. SPSCC returns the lesser of: (1) total unearned Title IV aid, or (2) total institutional charges multiplied by the unearned percentage. Where a student has received an institutional refund of tuition and fees, that refund reduces the institutional charges used in this calculation, which in turn reduces the amount SPSCC is required to return. In appropriate cases, institutional refunds may also be applied directly to offset the student's R2T4 balance owed to SPSCC.
5. SPSCC must return unearned funds for which the institution is responsible as soon as possible but no later than 45 days after the Determination Date.
6. The student is responsible for returning any remaining balance of unearned Title IV grant funds. Students will be notified of unearned Title IV grant overpayment due as soon as possible but no later than 45 days following the Determination Date. Title IV grant overpayment due by the student will be reported to NSLDS and referred to the U.S. Department of Education no later than 45 days following the Determination Date. A Referral Letter will be issued to the student once Title IV grant overpayment is referred.

The following examples illustrate how the R2T4 calculation works for a student who withdraws before the 60% point of the quarter. Actual amounts will vary based on enrollment, aid package, and withdrawal timing.

* SPSCC returns this amount to the applicable Title IV programs within 45 days of the Determination Date.
1 The student's balance may be reduced if an institutional tuition refund is applied. Contact the Financial Aid Office for details specific to your situation.

* SPSCC returns this amount to the applicable Title IV programs within 45 days of the Determination Date.
** SPSCC attempts to collect payment. If the student doesn't repay or make a satisfactory payment arrangement, Title IV overpayment due by the student will be reported to NSLDS and referred to the U.S. Department of Education within 45 days of the Determination Date.
1 The student's balance may be reduced if an institutional tuition refund is applied. Contact the Financial Aid Office for details specific to your situation.

Unearned Title IV funds are returned in the following order, as required by 34 CFR §668.22(i):

1. Direct Unsubsidized Loans
2. Direct Subsidized Loans
3. Direct PLUS Loans
4. Federal Pell Grant
5. FSEOG

Note: State grants and institutional aid are not Title IV funds and are not included in this return order. See the State Grant Enrollment Change and Refund Policy (STSV321) and Institutional Refund Policy (STSV322).

If the R2T4 calculation results in earned aid exceeding the amount already disbursed, the student may be eligible for a post-withdrawal disbursement (PWD). The following conditions and timelines apply:

Eligibility

SPSCC must have a completed financial aid file and the student must have been eligible for the aid at the time of withdrawal.

Grant PWDs

SPSCC will first apply grant PWD funds to outstanding institutional charges. Remaining grant PWD funds will be offered to the student. Grant PWDs do not require prior written permission from the student.

Loan PWDs

SPSCC must obtain written permission from the student (or parent, for PLUS Loans) before disbursing loan PWD funds. SPSCC will notify the student of available loan PWD funds within 30 days of the Determination Date.

Student Response Window

For loan PWDs, the student or parent has 14 days from the date of SPSCC's notification to accept or decline. If no response is received within 14 days, SPSCC will not disburse the loan PWD.

Timing

SPSCC will disburse any grant PWD as soon as possible but no later than 45 days after the Determination Date, will notify the student or parent of any available loan PWD within 30 days of the Determination Date, and will disburse accepted loan PWD funds no later than 180 days after the Determination Date (34 CFR §668.22(a)(6)).

Post-withdrawal disbursements are distinct from late disbursements under federal regulations.

When a student owes a Title IV grant overpayment, SPSCC will notify the student of the amount owed no later than 45 days following the Determination Date. SPSCC has two options for resolving the obligation:

Option 1 – Institutional Collection

SPSCC remits the funds to the U.S. Department of Education for overpayments in which the school is responsible and collects the overpayment from the student. Students may repay in full or enter into a satisfactory repayment arrangement.

Option 2 – Referral to the U.S. Department of Education

Title IV grant overpayment owed by the student as determined in the R2T4 calculation will be referred to the U.S. Department of Education after SPSCC attempts to collect payment from the student. If a student does not repay or make satisfactory arrangements to repay, Title IV grant overpayment owed by the student will be reported to NSLDS and referred to the U.S. Department of Education no later than 45 days after the Determination Date.

Once referred, the student repays the U.S. Department of Education directly and SPSCC's institutional responsibility is discharged. The student will become ineligible for Title IV aid at any institution until the obligation is resolved.

Regardless of which option applies, students with an unresolved Title IV overpayment are ineligible for federal financial aid until the obligation is satisfied by one of the following:

• Repayment in full to SPSCC (Option 1) or to ED (Option 2)
• Enrollment in a satisfactory repayment agreement with the U.S. Department of Education

• R2T4 calculation completed: within 30 days of the Determination Date
• Institutional return of funds: within 45 days of the Determination Date
• PWD notification (loans): within 30 days of the Determination Date
• Grant PWD disbursement: within 45 days of the Determination Date
• Loan PWD disbursement: within 180 days of the Determination Date
• Student overpayment notification: within 45 days of the Determination Date
• Unofficial withdrawal determination: no later than 30 days after the end of the payment period

Students who completely withdraw or who fail to earn a passing grade in any enrolled course are subject to SPSCC's Satisfactory Academic Progress (SAP) Policy. Withdrawal may result in failure to meet the minimum completion rate (pace) requirement and/or the minimum cumulative GPA requirement which may render the student ineligible for future Title IV aid until the student meets SAP standards or an appeal is approved. See SPSCC's SAP Policy (STSV310) for details.

For questions about this policy, including the exact date of the 60% point for a given quarter, contact the SPSCC Financial Aid Office by email at kcannon@spscc.edu or by visiting the One-Stop in Building 22 on Main Campus.