RETURN TO TITLE IV FUNDS (R2T4)
Title IV (federal) financial aid funds are awarded under the assumption that a student will remain in attendance for the entire payment period (semester) for which the funds were awarded. CSN students who receive federal financial aid and who do not remain in attendance through the end of the semester, regardless of the reason, could be responsible for repaying a portion of the financial aid originally received. Federal Aid includes the Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (FSEOG) and Federal Direct Loans.
NOTE: Once the student has completed more than 60 percent of their payment period or period of enrollment, they are considered to have earned all the financial aid originally awarded and will not be required to return any funds.
Federal regulations require a recalculation of financial aid eligibility if a student:
- Completely withdraws;
- Stops attending before the semester’s end;
- Does not complete all modules (short-term classes);
- Or having all F, W, I, NP, AU, U or any combination
*Students who do not begin attendance in classes are not eligible for federal financial aid and must repay all aid originally received.
If a financial aid recipient who has not officially withdrawn fails to receive a passing grade in a class(es) during the term, the Financial Aid Office will determine whether the student established eligibility for the aid originally awarded.
Students who owe the US Department of Education for an overpayment of Title IV funds are not eligible for any additional federal financial aid until the overpayment is paid in full or payment arrangements are made with the US Department of Education/Debt Resolution Services.
Students who owe CSN because of an R2T4 calculation will be placed on a financial hold. They will not be allowed to register for subsequent terms or receive academic transcripts until the balance is paid.
Refer to the Financial Aid Office Satisfactory Academic Progress Policy to determine how a withdrawal impacts aid eligibility.
Return of Title IV Funds calculations
Return of Title IV Funds calculations are performed on a payment period basis. The amount of financial aid that a student earns for the semester is based on the aid that has been disbursed when the calculation is performed, the number of calendar days in the payment period, and the number of calendar days for the payment period that the student was enrolled prior to withdrawal. Any scheduled breaks (such as spring break) of five days or more are deducted from the total number of calendar days in the semester. The Return of Title IV funds calculation determines a student’s earned and unearned Title IV aid based on the percentage of the payment period completed by the student. The amount of assistance earned is determined on a pro-rata basis. If the number of days that a student was enrolled equals less than 60 percent of the total calendar days (minus breaks) in the semester, Title IV funds may need to be returned by the school, the student or both. If the student has completed more than 60 percent of the semester, they will retain any aid that has been disbursed.
Examples
Student A
Enrolls in two 16-week courses including Art 101 and Soc 101. The student received a federal Pell grant for $1,849. The semester does not offer any breaks of 5 days or more. There is a total of 112 days in the semester. The student dropped Art 101 fifteen days into the semester. The student later dropped Soc 101 sixty-three days into the semester. The Office of Financial Aid performs a recalculation to determine earned and unearned aid by dividing the number of calendar days the student attended up to the withdrawal date (63 days) by the number of calendar days in the payment period (112 days). Based on the student completing 63 days of 112 days in the payment period (63/112= 56.25%), student earned 56.25% in aid thus, $1,040.06 (56.25% of $1,849).
Student B
Enrolls in two 16-week courses including English 101 and Com 101. The student received a federal Pell grant for $1,849. The semester does not offer any breaks of 5 days or more. There is a total of 112 days in the semester. The student successfully completes English 101 with a “B” grade but drops Com 101 fifty days into the semester. The Office of Financial Aid performs a recalculation to determine earned and unearned aid by dividing the number of calendar days the student attended up to the withdrawal date (112 days) by the number of calendar days in the payment period (112). Based on the student completing English 101 (112 days) of 112 days in the payment period, student earned 100% of $1,849 in aid.
Student C
Enrolls in two 16-week courses including PSY 101 and PCS 101. The student received a federal Pell grant for $1,849. The semester does not offer any breaks of 5 days or more. There is a total of 112 days in the semester. The student drops PSY 101 twenty-five days into the semester. The student later drops PSC 101 seventy-five days into the semester. The Office of Financial Aid performs a recalculation to determine earned and unearned aid by dividing the number of calendar days the student attended up to the withdrawal date (75 days) by the number of calendar days in the payment period (112 days). Based on the student completing 75 days of 112 days in the payment period (75/112= 66.96%), student earned 66.96% in aid. Because the student completed more than 60 percent of the semester, the student may retain any aid.
Course Registration and Withdrawal Policy
Contact Information
Helpful Links
- Making sure you are staying eligible for financial aid: https://studentaid.gov/understand-aid/eligibility/staying-eligible
- Understanding Student Loan Delinquency and Default: https://studentaid.gov/manage-loans/default
- CSN Policies and Procedures https://www.csn.edu/policies-procedures
