Return of Title IV Aid Policy

Process Overview & Applicability

The withdrawal and return of Title IV process is managed in the Office of Financial Aid by the State and Federal Grant Coordinator.  The process of university withdrawal is coordinated between the Office of Student Success and Retention, College Advising Centers, the Office of the Registrar, the Financial Aid Office, and the Office of the Bursar.

Policy

This policy was effective beginning Fall 2000 and was put into place as a result of the Higher Education Amendments of 1998 (HEA 98).  The policy affects students who completely withdraw from all classes in a semester and who are receiving or are eligible to receive Federal Title IV financial assistance.  It does not apply to students who withdraw from some, but not all classes within a semester. 

Additionally, students who receive a 0.0 GPA for any semester where they receive Title IV aid are reviewed to confirm they earned the aid they received for the semester.  This process is known as unofficial withdraw review and occurs at the conclusion of each term.

Impacted Aid Programs

The Federal Title IV programs covered under this policy includes Federal Pell Grant, Federal SEOG, Federal Direct Loans, and Federal PLUS for Parents and Graduate Students.  Students whose application have not completed the verification process, or do not have a finalized application are ineligible to receive any financial aid and this policy does not apply to the withdraw.

Definition of Withdrawn Student

The policy affects students who completely withdraw from all classes in a semester and who are receiving or are eligible to receive Federal Title IV financial assistance.  It does not apply to students who withdraw from some but not all classes within a semester.

Additionally, students who receive a 0.0 GPA for any semester where they receive Title IV aid are reviewed to confirm they earned the aid they received for the semester.  This process is known as unofficial withdraw review and occurs at the conclusion of each term.

How Your Withdrawal Date is Determined

The student’s official withdrawal date is determined by the university as 1) the date the student began the university’s withdrawal process (the date that the student officially notified the Student Success Center of his/her intent to withdraw); 2) the date provided by the official notification from the Office of the Registrar, if the prior does not exist.  For students who are reviewed in the unofficial withdraw process the withdraw date is determined as 1) midpoint of the semester if the student withdraws without notifying the university or 2) the student’s last date of attendance at an academically-related activity as documented by the university.

Federal Aid Programs Impacted

The Federal Title IV programs covered under this policy includes Federal Pell Grant, Federal SEOG, Federal Direct Loans, and Federal PLUS for Parents and Graduate Students.  Students whose application have not completed the verification process, or do not have a finalized application are ineligible to receive any financial aid and this policy does not apply to your withdraw.

Radford's Federal Return Requirements

We are required to treat official and unofficially withdrawn students the same as it pertains to determining their eligibility for Title IV aid programs.  The school must calculate, according to a specific formula provided by the federal government, the portion of the total financial assistance that the student has earned until the time that the student withdrew.  The portion of the federal grants and loans that the student is entitled to receive is calculated on a percentage basis by comparing the total number of days in the semester to the number of days that the student completed before he/she withdrew.  For example, if a student completes 30% of the semester, 30% of the approved federal aid has been earned which in turn means that 70% of the students scheduled or disbursed aid remains unearned and must be returned to the Federal Programs. 

The State and Federal Grant Coordinator begins the R2T4 calculation by entering accurately entering aid based on the student’s award status.  The Office of the Bursar is notified via email that the R2T4 is ready to be completed with applicable charge information.  Once the charge information is entered in the R2T4 the State and Federal Grant Coordinator is responsible for working with Financial Aid personnel to return funds to the designated aid programs within the allowable timeline.  For example, the State and Federal Grant Coordinator will work with the Loan Coordinators to return unearned subsidized and unsubsidized loan funds.

When a student receives (or the university receives on the student’s behalf) more assistance than the student earns, the unearned funds must be returned to the Department of Education or to the Federal Loan Programs.  If it is determined that a portion of the financial aid received on the student’s behalf is unearned, the University shares with the student the responsibility of returning those funds.  The State and Grant Coordinator notifies the students of the aid that will be returned to the Federal aid programs on their behalf.  Once the aid has been returned to the programs, the Office of the Bursar notifies the student of any outstanding charges that exist with the University.

Any grant funds that the student is required to return to the Federal Programs are considered an overpayment.  The student must either repay the amount in full or make satisfactory payment arrangements with the Department of Education to repay the amount. If the student fails to repay, or make payment arrangements, to repay an overpayment the student will lose his/her eligibility to receive future federal financial aid at any institution.  If a student must make payment directly to the Department, the Office of the Bursar notifies the student of their need to make repayment arrangements within 45 days.  If repayment arrangements are not made then the State and Grant Coordinator is responsible for working with Assistant Director of Support Systems in the Office of Financial Aid to report the overpayment status to NSLDS.

If student’s charges are less than the amount of aid earned, and a refund is due, the student may be able to receive those funds.  The State and Grant Coordinator notifies the student of the eligible refund and confirms the students desire to receive the funds before they are disbursed.  If a response to the notification is not received, the funds are not disbursed.