Federal Title IV financial aid funds are awarded under the assumption that a student
will remain in attendance for the entire semester and complete all classes for which
Title IV funds or loans were awarded.
If a recipient of these funds withdraws from classes a school after beginning attendance,
the amount of Title IV grant or loan assistance earned by the student must be determined
by performing a Return to Title IV (R2T4) calculation, as required under Department
of Education regulations. If the amount disbursed to the student is greater than the
amount the student earned, unearned funds must be returned. If the amount disbursed
to the student is less than the amount the student earned, the student may receive
a post-withdrawal disbursement. Note: Institutional scholarship funds, Federal Work
Study and Cal Grant funds are not subject to the R2T4 policy.
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Pell Recalculation Date
Pell Recalculation Date
Each semester there is a Pell Recalculation Date (PRD), also known as a census date.
On this date each student’s unit load (number of units enrolled) is recorded, which
determines the student’s eligibility for financial aid awards for the semester. Any
classes that are added or dropped after this date will not impact (either increase
or decrease) the student’s financial aid unit load eligibility for the semester.
Withdrawals & Return of Funds
Withdrawals & Return of Funds
Grossmont College is required to complete a Return of Title IV (R2T4) calculation
for any student that withdraws from or ceases to attend all classes during a semester,
since they may no longer be eligible for the full amount of aid received or scheduled
to receive. The purpose of the calculation is to determine the earned and unearned
amounts of federal student aid that the student was entitled to receive. Students
who withdraw from all courses prior to completing more than 60% of the semester will
have their financial aid eligibility recalculated based on the percentage of the semester
completed.
Withdrawals are classified as official or unofficial. Since Grossmont College is not
an attendance-taking institution, a student's withdrawal type and date for the Return
of Title IV calculation is determined as follows:
Official Withdrawal
An official withdrawal occurs when a student drops, withdraws from classes, or is
administratively dropped or withdrawn. The date of withdrawal is considered to be
the date the student provides notification, orally, in writing, or electronically
to the Admissions and Records Office that they intend to withdraw, or the date the
administrative withdrawal occurs.
For a student that withdraws from all classes on or before the 60% point of the term, a portion of unearned funds may be required to the returned by the college,
the student and/or both.
For a student who withdraws after the 60% point of the semester, they are considered to have earned all of the financial aid originally
awarded and will not be required to repay most funds as a result of withdrawal.
Unofficial Withdrawal
Students who do not officially withdraw and complete zero (0) units for the term will
be considered unofficially withdrawn. The midpoint (or 50% point) of the term will
be used as the effective withdrawal date to determine earned and unearned aid amounts
for students who unofficially withdraw from the College.
Combination of Official & Unofficial Withdrawal
Students who have official and unofficial withdrawals in one payment term will be
calculated based on the date of the last official withdrawal or the midpoint date
(50%), whichever is later.
Military Withdrawals
If a student withdraws due to being called to active duty or military mobilization,
the school must perform the required Return of Title IV Funds calculation. If this
calculation results in the school being required to return funds to one or more of
the Title IV programs, it must do so. An institution, however, is not required to
collect an overpayment of funds from the student or notify the student of the calculation.
Failure to Begin Attendance
Failure to Begin Attendance
If a student receives financial aid, but never attends any class meetings, all funds
received by the student are considered unearned and results in a 100% institutional
liability, which is be required to be repaid by the student.
Short-term Courses
Short-term Courses
Short-term courses are courses that do not span the entire length of the semester.
If a student withdraws and does not attend a subsequent short-term class, it is considered
a complete withdrawal and a R2T4 calculation must be completed. If at the time of
withdrawal, the student will attend another short-term course within the same semester,
then it is not considered a withdrawal. However, Federal Regulations requires the
Financial Aid Office to request the student to provide written confirmation or email
to the Financial Aid Office within 7 days that they will be enrolling in an upcoming
short-term course. This confirmation is required even if the student was previously
registered for future courses prior to withdrawing.
Post-Withdrawal Disbursement
Post-Withdrawal Disbursement
If the student received less aid than the amount earned based on the R2T4, the College
will offer a Post-Withdrawal Disbursement (PWD) within 30 days of the determination
date. Federal Pell grants will be disbursed without written confirmation; however,
a student may decline or reduce their PWD to preserve grant eligibility. Loan proceeds
will require written confirmation from the student for disbursement within 14 days
of the notification, and funds will be disbursed no later than 45 days from the determination
date.
Grossmont College may use all or a portion of a student’s PWD (including student loan
funds, if accepted) to offset any eligible, outstanding tuition and fees.
Return & Repayment of Unearned Funds
Return & Repayment of Unearned Funds
If a determination is made that a student did not earn all funds for the payment period
(semester) that were disbursed, a repayment of funds may be required. The student
will be notified of the amount owed to the institution (Institutional Liability) and/or
the amount owed to the Department of Education (Student Portion Liability).
Repayment Timeframe
The R2T4 calculation should be completed within 30 days after the type and date of
withdrawal is determined. If the student has been overpaid, he/she will be notified
via email of the amount and program of funds that are required to be returned.
Students who have an Institutional Liability will have a hold placed on their record,
prohibiting registration for future semesters or the receiving of academic transcripts
until the debt is paid in full.
Students who have a Student Liability will be given a period of time in which to repay
the debt to the institution, If payment in full is not received by the given date,
the debt will be reported to the Department of Education’s Debt Resolution Services.
If unpaid after 45 days, a hold will be placed on the student’s DoEd record and he/she
will lose federal financial aid eligibility until the funds have been repaid.
Any student loan funds to be returned must be repaid in accordance with the terms
of the promissory note, making scheduled payments to the lender or holder of the loan
over a period of time.
Order of Return of Title IV Funds
R2T4 calculations require the return of funds in the following order:
- Unsubsidized Loans
- Subsidized Loans
- Federal Pell Grants
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- Iraq & Iran Service Grant
Scholarship funds, Federal Work Study payments, and Cal Grant funds are not subject
to this calculation.
School / Student Responsibilities
School / Student Responsibilities
Grossmont College's responsibilities:
Providing each student with the information given in this policy;
Identifying students affected by this policy and completing the Return of Title IV
Funds (R2T4) calculation;
Informing the student of the result of the R2T4 calculation and any balance owed to
Grossmont College as a result of a required return of funds;
Returning any unearned Title IV aid that is due to the Title IV programs and, if applicable;
notifying the borrower’s holder of federal loan funds of the student’s withdrawal
date;
Notifying student of eligibility for a Post-Withdraw Disbursement, if applicable.
Students' responsibilities:
Becoming familiar with the Return of Title IV Funds (R2T4) policy and how withdrawing
from all courses effects eligibility for Title IV aid;
Resolving any outstanding balance owed to Grossmont College resulting from a required
return of unearned Title IV aid;
Resolving any repayment to the U.S. Department of Education as a result of an overpayment
of Title IV grant funds.