TASFAA Conference 2014 Dianne Cox, UTC Jeanne Hinchee, Chattanooga State Based on NASFAA Fall 2013 Training Compliance and Campus Collaboration – R2T4.

R2T4End of the Road

TASFAA Conference 2014Dianne Cox, UTC

Jeanne Hinchee, Chattanooga State

Based on NASFAA Fall 2013 TrainingCompliance and Campus Collaboration – R2T4

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Terminology and General Principles

Possible Pitfalls in Working with Modules

Hands-on R2T4 Calculations

Agenda

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Overview of R2T4 Process

Determine student’s withdrawal date

Calculate percentage of payment period or period of enrollment completed

Determine amount earned by applying percent

completed to total Title IV aid disbursed and that could

have been disbursed

Decide if earned funds are due to the student through a

Post-Withdrawal Disbursement; obtain

permissions and credit as allowed

Decide if unearned funds are due to Title IV programs, and

whether they are due from the student or the school

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Return of Title IV funds – An institution is required to determine earned and unearned portion of Title IV aid when a student ceases enrollment prior to the planned completion date

Post-withdrawal disbursement – Amount paid to student as earned Title IV funds after R2T4 calculation is completed

Unearned funds – Funds that must be returned to appropriate Title IV program

Definitions & General Principles

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Withdrawal date – The withdrawal date is used to calculate the amount of earned and unearned funds

Determination of the withdrawal date is driven by whether the institution is required to take attendance

Withdrawal Date

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Official withdrawal – Student begins school’s

withdrawal process or provides notification he or she will

withdraw, or both Date of determination is the earlier of the two dates

Unofficial withdrawal – Date of determination is the

date the school becomes aware the student has ceased

attendance

Date of Determination

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Required to take attendance – Can be required by an outside entity (such as an accreditor or state agency), or the institution itself.

Must use official attendance records Could apply to a subset of students, or for a certain time period.

At schools required to take attendance – Date of determination should be no more than 14 days after the last date of attendance

Withdrawal Date – additional considerations for institutions required to take attendance

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Student who actually received a disbursement of Title IV grant or loans fundsor who met the qualifications for a late disbursement of Title IV funds [R2T4 does not apply to Federal Work-Study (FWS)]

If student never began attendance, R2T4 does not apply (all Title IV aid must be cancelled)

Title IV recipient

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Includes tuition and fees (required of all students in program)

Room and board, if contracted with the school

Books, supplies, materials, and equipment, if the student cannot reasonably get them anywhere besides from the school

Institutional Charges

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For students who withdraw from a trimester, semester, or quarter program – use payment period

For students who withdraw from a nonstandard term-based or non term-based program – School can choose to use either payment period or period of enrollment

Payment period versus period of enrollment

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14 days – Institution required to take attendance must have a process to determine that a student withdrew no later than 14 days after last date of attendance

30 days – Institution must perform the R2T4 calculation and notify student of any grant overpayment or post-withdrawal disbursement

45 days – Institution must return Title IV funds

Important Deadlines

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Modules are courses in a student’s program that do not span the entire length of the payment period or period of enrollment

Example: School has 14-week summer term, during which students can enroll in any or all of the following sessions:

Two 5-week sessions offered one after the other A single 14-week session

Modular Programs

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Example, continued: A student enrolled in one or both 5-week sessions is

considered to be enrolled in a program offered in modules

A student enrolled in one 5-week session and the 14-week session is considered to be enrolled in a program offered in modules

A student enrolled in only the 14-week session would not be considered enrolled in a program offered in modules

Defining a Modular Program

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If student begins one or more modules:

but does not begin next module he is scheduled to attend and

does not provide written confirmation at time of withdrawal stating his planned attendance in a module beginning later in same payment period or period of enrollment;

he is considered to have withdrawn because he did not complete all the days he was scheduled to attend

Determining withdrawal from Modular Programs

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Under current regulations, completion of one course in one module in a term-based credit-hour program no longer means student has not withdrawn

NASFAA Handout includes R2T4 in modules decision tree

Withdrawal from a Modular Program

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Case Study 6 from 1314 FSA Handbook. Thompson Hunter

School Profile: Academic Yr. = 2 semesters/32 weeks and 24 semester hours

Payment Period = 1 Semester Fall Semester = 117 calendar days Period Start Date = August 22 Period End Date = December 16 Institutionally scheduled break of 9 days from Saturday , November 19

through Sunday, November 27. Attendance Taking Not Required

R2T4 Case Study 1 – Credit hours

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Module start and end dates within the semester are:Start EndAugust 22 September 16September 19 October 14October 17 November 11November 14 December 16

Student is enrolled in 3 credit hours in each of the 4 modules.

COA Profile: Title IV Award Profile:Tuition & fees:$1200 for 12 credits Pell Grant: $2775/semesterBooks: $400/semester FSEOG: $1825/semesterRoom (contracted with institution): $1400/semesterBoard: $800/semesterTravel & Personal: $800/semester

R2T4 Case Study 1, continued

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Thompson completes first 2 modules.

On October 14, he indicates he will not attend the last 2 modules for the semester.

Step 1: Recalculate Pell Grant & SEOG eligibility for the semester: Pell Grant – reduced to half-time award or $1388 FSEOG – recalculated using costs attributable to the first 2 modules. Based on a revised COA of $3600 and revised Pell Grant of $1388, remaining need is $2212. No change to FSEOG award.

R2T4 Case Study 1, continued

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Step 2: R2T4 calculation Use recalculated Title IV amounts. Date of withdrawal = October 14 There is a scheduled break of 9 days within the enrollment period, so these 9 days must be subtracted from total calendar days (subtract breaks of 5 or more days)

117 days minus 9 days = 108 total days

R2T4 Case Study 1, continued

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For nonterm credit-hour programs: If student makes progress at their own pace:· Ending date and number of days in payment period will

not be same for all students

· School must project an end date of the payment period based on student’s progress as of his or her withdrawal date; and

· Use projected end date to determine the number of days in the payment period

Determining Percentage of Days Completed

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Schedule hours are used to determine % completed versus actual hours attended

Determining Percentage of Days Completed, cont.

# of clock hours student

was scheduled to complete at withdrawal

Total # of clock hours in period

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Determining Percentage of Days Completed, cont.

Example:

• Student attended 1st 30 class days in the semester• WD on the 30th day – last scheduled day of class• Program hours = 6.5 hours a day• On 4 different occasions, student only attended 2 hours

each day• Student’s actual hours = 177• Student’s scheduled hours = 195 (used in R2T4

calculation)

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Sample Student• School Profile: Academic Yr. = 900 clock-hours/30 weeks

Payment Period = 450 scheduled clock-hours Period Start Date = August 24 Period End Date = December 10 Institutional Scheduled Breaks = None Attendance Taking = Required Date Institution determined WD: October 3

Equals scheduled hours completed = 175 (28 days * 6.25 hrs) Period Used in the Return Calculation = Payment Period

• COA Profile: Title IV Award Profile: Tuition & fees: $1104/PP Pell Grant: $2823/PP Books & supplies: $ 546.24/PP Subsidized DL $1732 & Unsub $990

R2T4 Case Study 2 – clock hours

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Dianne CoxUniversity of [email protected]

Jeanne HincheeChattanooga State Community [email protected]

Questions?