Presentation on theme: "RETURN OF TITLE IV FUNDS Vicki Kucera November 1, 2013 NeASFAA Support Staff Workshop."— Presentation transcript:
RETURN OF TITLE IV FUNDS Vicki Kucera November 1, 2013 NeASFAA Support Staff Workshop
WHY?? To determine the amount of unearned funds that must be returned to Title IV programs: By whom? Within what time frame?
REQUIREMENTS Amount of earned Title IV aid is proportionate to portion of period completed at the time the student withdrew. Unearned Title IV aid must be returned. Undisbursed earned Title IV aid must be disbursed or offered.
R EQUIREMENTS … Amount of unearned Title IV aid to be returned is independent of institutional charges assessed under school’s refund policy. Title IV regulations do not govern school’s refund policy.
WHAT PROGRAMS ARE APPLICABLE?? Federal Pell Grant Iraq and Afghanistan Service Grant (IASG) Teacher Education Assistance for College and Higher Education (TEACH) Federal Supplemental Educational Opportunity Grant (FSEOG) Federal Perkins Loan; and Federal Direct Student Loan (Direct Loan)
WHAT PROGRAMS ARE NOT APPLICABLE?? Federal Work-Study (FWS) Non Title IV Funds Nebraska Opportunity Grant Scholarships Tuition Waivers Institutional Grants Other
HOW DO WE CALCULATE ROT4 IF STUDENT NEVER STARTS ATTENDING? We don’t. If the student never starts attending any classes in a payment period, they are not eligible for ANY Title IV funds.
WHEN IS R0T4 APPROPRIATE? When student withdraws 100% of coursework. Can be written or oral. If withdrawal is by letter from student, withdrawal date would be date school received the letter. If oral, document date of conversation. If student begins process on one date and officially withdraws another, use earlier date.
WHEN IS R0T4 APPROPRIATE? Date of unofficial withdrawal (last date of attendance for schools required to take attendance). Student fails to earn passing grades – school must treat the student as having unofficially withdrawn using the: Midpoint of the payment period, or Documented last date of attendance at an academically related activity.
MODULES – QUESTIONS TO ASK : 1. After beginning attendance, did student stop attending in a course he/she was scheduled to attend? 2. When student stopped attending was he still attending any other courses? 3. Did student confirm attendance in writing for enrollment in a course in a module later in the payment period or period of enrollment?
S TEP 1: D ETERMINE % OF AID EARNED Days Attended _______________ = Percentage completed Days in period Do not count breaks that are at least five days in length (includes weekends). Example: Student attends 71 days out of 113 days. Percentage completed: 71 divided by 113 = 62.8%
60% RULE If student attends or withdraws past the 60% point in the term, no Return of Title IV Funds. School must still do calculation and keep on record.
S TEP 2: D ETERMINE AMOUNT OF AID EARNED BY APPLYING % COMPLETED TO THE TOTAL T ITLE IV AID THAT WAS OR COULD HAVE BEEN DISBURSED. Earned aid = (Disbursed aid + Aid that could have been disbursed) x % completed. NOTE: Aid that could have been disbursed includes loans. It is very appropriate to give students the option of cancelling their loan request if they are withdrawing (but not mandatory).
S TEP 3: D ETERMINE THE AMOUNT OF UNEARNED AID BY SUBTRACTING EARNED AID FROM DISBURSED AID Unearned aid must be returned to the appropriate Title IV Program.
S TEP 4: D ISTRIBUTE RESPONSIBILITIES FOR RETURNING UNEARNED AID BETWEEN SCHOOL AND STUDENT Formula is designed so that all funds are returned by the school if student’s institutional charges equal or exceed Title IV funds disbursed, OR School and student each return a share of the funds if Title IV funds disbursed exceeds student’s institutional charges. Institutional charges used in the calculation are those charges originally assessed the student or revised amount resulting from enrollment status changes pre- withdrawal.
STEP 5: A LLOCATE UNEARNED AID BACK TO THE T ITLE IV P ROGRAMS Allocate unearned funds to programs in this order: Direct Unsubsidized Loan Direct Subsidized Loan Federal Perkins Loan Direct PLUS Federal Pell Grant FSEOG TEACH Grant, and then IASG
TIMEFRAME School must return unearned Title IV funds for which it is responsible within 45 days of the date school determined the student withdrew. Unearned loan funds to be returned by the student or parent PLUS borrower are repaid according to the terms of the promissory note. If the student must repay unearned grant funds, school must notify the student that he or she has 45 days in which to repay the overpayment in full or enter into a repayment agreement with the school or US Dept. of Education. Round repayment amounts to nearest dollar.
DISCUSSION!! Reauthorization 2014 (or 2015, or 2016, or 2017…) Special circumstances Other