How a Withdrawal Affects Financial Aid
Title IV Federal financial aid funds are awarded under the assumption that a student will remain in classroom attendance for the entire semester for which the funds were awarded.
When a student withdraws from all courses, regardless of the reason, s/he may no longer be eligible for the full amount of Title IV funds originally awarded. The return of funds to the federal government is based on the premise that a student earns financial aid in proportion to the length of time during which s/he remains enrolled. A pro-rated schedule determines the amount of federal student aid funds s/he will have earned at the time of full withdrawal. For example, a student who withdraws in the second week of the semester has earned less of his/her financial aid than a student who withdraws in the fifth week. Once the 60% point in the semester is reached, a student is considered to have earned all of 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
CJC students who receive federal financial aid and who do not remain in attendance through the end of the semester could be responsible for repaying a portion of the financial aid originally received.
Students who do not begin attendance in classes are not eligible for federal financial aid and must repay all aid originally received.
NOTE: CJC’s institutional tuition refund policy is separate from federal regulations to return unearned aid. Receiving a tuition/fee refund from CJC will have no impact on the amount the student must repay to the federal aid programs.
How Earned Financial Aid is Calculated
Financial aid recipients “earn” the aid they originally received by remaining in classes. The amount of federal assistance earned is based on a pro-rated system. Students who withdraw or do not complete all classes in which they were enrolled may be required to return some of the aid originally awarded.
CJC is required to determine the percentage of TIV aid “earned” by the student and return the “unearned” portion to the appropriate federal aid programs. CJC is required to perform this calculation within 30 days of the date the school determines that a student has completely withdrawn. The school must return the funds within 45 days of the calculation. The R2T4 calculation is completed by the Financial Aid Office.
The following explains the formula used to determine the percentage of unearned aid to be returned to the federal government:
- The percent earned is equal to the number of calendar days completed up to the withdrawal date divided by the total number of calendar days in the payment period.
- The payment period is for the fall and spring semesters.
- The percent unearned is equal to 100 percent less the percent earned.
- Breaks of 5 days or longer are not included in the count of total days in the payment period.
Institutional scholarship funds are not subject to the R2T4 policy.
- A student who wishes to permanently withdraw from the CJC must file a Withdrawal Form with the Registrar. Withdrawal Forms are available from the Registrar in the Main Office. The notice to permanently withdraw will be considered effective no later than the date it is received by the Registrar. Exceptions may be made for family or medical emergencies with valid documentation. Permanent withdrawal may be effectuated by a student’s written notice or by a student’s conduct, including, but not necessarily limited to, a student’s lack of attendance. The Registrar notifies the Financial Aid and Business offices of all withdrawals.
- The Financial Aid Office determines the amount of TIV aid originally awarded and whether it is “disbursed” or “could have been disbursed.”
- The Business Office provides the student’s original tuition and fee charges.
- An R2T4 worksheet on the “FAA Access to CPS” site is completed using the above data. The calendar for the payment period will have previously been entered and saved.
- The Financial Aid Office will post the recalculated amount of aid for which the student is eligible (as per the results of the R2T4 worksheet) to his/her EDExpress account and exported to COD.
- A copy of the worksheet is maintained in the Financial Aid Office and made part of the student’s record.
- A second copy of the worksheet is forwarded to the Business Office for the purposes of checking the accuracy of data entry and for student billing purposes.
- CJC will return funds to the federal programs on the student’s behalf and will bill the student.
- In the instances in which a student owes a federal grant repayment in addition to what CJC has returned to the federal programs, the student is notified in writing and the amount is reported by the Financial Aid Office as an overpayment.
- The student is responsible for all CJC charges and federal overpayments resulting from an R2T4 calculation.
Post-Withdrawal Disbursement of Loan Proceeds
When the R2T4 calculation results in the student’s being eligible to receive either Federal Direct Stafford Subsidized or Unsubsidized Loan proceeds, s/he will be contacted via e-mail by the Financial Aid Office. Written authorization from the student will be requested and is required before loan proceeds can be processed and awarded to the student.
Determination of Withdrawal Date
The withdrawal date used in the R2T4 calculation is the actual last date of attendance as provided by the Registrar on the withdrawal form.
Attendance is recorded by CJC instructors during each class meeting. The record for the semester is catalogued at the end of the semester by the CJC Administrative Office.
The CJC Financial Aid Office reviews posted grades every term. If a student receives all non-passing grades, attendance in the term cannot be verified and as a result they are determined to have unofficially withdrawn. Students are notified by telephone by the Registrar and by email confirmation, if they are considered an unofficial withdrawal. Per Federal Return to Title IV regulations, financial aid is adjusted using the 50% point of the term as the withdrawal date.
In order to reevaluate this determination, students must provide documentation to support attendance in at least one course through more than half of the term.
Withdrawing Prior to the 60% Point of a Payment Period
Unless and until a student completes 60% of the term in which financial aid was awarded, the student will be required to return all or part of the financial aid originally awarded for the term.
When a Student Fails to Begin Attendance
If financial aid is processed for a student who never begins attendance in any class for which s/he registered in a term, all aid will be canceled.
The Registrar provides a list of student who did not begin class after the census date of the payment period. This report lists the students and the classes in which they never attended. Financial aid originally awarded is canceled for students who failed to begin attendance in all classes in which they were originally enrolled and is adjusted for those who fail to begin attendance in a portion of the classes in which they were originally enrolled.
When a Student Fails All Classes
If a financial aid recipient who has not officially withdrawn fails to receive a passing grade in at least one class during the term, the Financial Aid Office will determine whether the student actually established eligibility for the aid originally awarded. Instructors will be contacted and asked to provide information on the student’s attendance. If the student did not begin attendance, or stopped attending during the payment period, the financial aid originally awarded will be canceled or adjusted.
Order of Return to Federal Aid Programs
In accordance with federal regulations, unearned aid will be returned to the federal programs in the following order:
- Federal Direct Loans: Unsubsidized, then Subsidized
- Federal Direct Parent Loans
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant
Information Regarding Loan Repayment
The R2T4 calculation may result in the student’s and parent’s being responsible for directly returning additional loan amounts to the US Department of Education.
The loan grace period begins on the withdrawal date from the school, or when a student ceases to be enrolled on at least a half-time basis. If the student does not re-enroll as a half-time student within 6 months of withdrawal or less than half-time enrollment, the loans enter repayment. The student should contact the loan servicer or the US Department of Education to make repayment arrangements. The promissory note signed by the borrower outlines repayment obligations. The student should contact the servicer or the US Department of Education with any questions. Log on to www.NSLDS.gov to obtain contact information for your servicer(s).
Consequences of Non-Repayment
Students who owe the US Department of Education for an overpayment of TIV 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.
Students who owe CJC because of an R2T4 calculation will be placed on a financial hold. They will not be allowed to register for subsequent semesters or receive academic transcripts until the balance is paid.
How a Withdrawal Affects Future Financial Aid Eligibility
Refer to the Financial Aid Office Satisfactory Academic Progress Policy to determine how a
withdrawal impacts aid eligibility.
NOTE: This policy is subject to revision without notice based on changes to federal laws and regulations or CJC policies. If changes are made, the student is held to the most current policy. This statement is intended to provide an overview of R2T4 policies and procedures related to a complicated federal regulation.