Return of Title IV Funds for Federal Aid Recipients
Policy
Purpose:
Determining the amount of financial aid that must be returned to the Federal Student Aid programs when a student withdraws.
Applies to:
All students who are receiving Title IV Federal Aid and who withdraw, either officially or unofficially, from all courses after aid has disbursed. The instructors of classes in which these students enrolled.
Campus:
Edwards
Lawrence
Juniper Gardens
Parsons
Yoder
Topeka
Medical Center, Kansas City
Salina
Wichita
Policy Statement:
When a student withdraws from all classes, the corresponding Financial Aid and Scholarships Office must determine if any aid will need to be returned to the Federal Student Aid programs (Title IV Aid). Both the KU Lawrence campus (KULC) and KU Medical Center campus (KUMC) Financial Aid and Scholarships Offices make these determinations by following the steps listed below (known as “Return of Title IV Funds” or R2T4):
- The withdrawal date for a student who completes the official withdrawal process online through their Enroll & Pay Student Portal will be determined by the effective date of the Withdrawal Form required by the Office of the University Registrar.
- The withdrawal date for a student who unofficially withdraws (students who do not notify the institution that they have ceased or will cease attending) will be determined by an automated learning management system Documentation of Attendance (DA) report. If no results are returned, DA will be requested from instructors via email.
- The time frame for returning the Title IV Aid by the University will be as soon as possible, but no later than 45 calendar days after the date of the University’s withdrawal determination.
- The percentage of Title IV Aid that a student has earned based on the student’s withdrawal date is calculated using credit-hour standard-term programs. The automated Return of Funds worksheet utilizes the Date of Withdrawal, Institutional Determination Date, Total Title IV Aid Disbursed and Total Institutional Charges to determine the Percentage of IV Aid Earned.
- The order in which Title IV Aid is returned:
- Unsubsidized Direct Loans
- Subsidized Direct Loans
- Direct PLUS Loans
- Federal Pell Grants
- Iraq and Afghanistan Service Grants
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- Teacher Education Assistance for College and Higher Education (TEACH) Grants (KULC Only)
- A student must repay Title IV Aid when an R2T4 calculation results in an amount owed that exceeds the school’s portion. The student must be notified by written correspondence addressed to the permanent address in the student’s file confirming what aid has been returned by the school on the student’s behalf and what portion needs to be repaid by the student. The student will receive an e-bill with any debt that incurred as a result of the R2T4 calculation. This debt is subject to all University collection processes.
- If the type of aid that the student is responsible for returning is a loan, then the student is not required to immediately repay the amount as the grace period for that loan is invoked. The grace period is generally six months, but the length may vary based on the type of loan at issue. If the type of aid that the student is responsible for returning is a grant, then the student will incur a charge on the University bill. Federal return of funds regulations require that the student only repay one-half of the grant amount that is unearned.
- If a student has earned Title IV Aid and that aid has not been disbursed to them yet (i.e., post-withdrawal disbursement), the student will be informed of how to accept or decline the aid within 30 calendar days of their withdrawal. The student will be allowed a minimum of 14 calendar days to respond. The amount of undisbursed aid will be adjusted based on the percentage of the term for which the student documented attendance. All post-withdrawal disbursements will first be applied to any balance due to the institution, with any remaining credit balance being refunded to the student within 14 calendar days of the R2T4 calculation being completed. Grant funds must be disbursed within 45 calendar days of the calculation.
Contact:
KULC Financial Aid & Scholarships
KU Visitor Center
1502 Iowa Street
Lawrence, KS 66045
785-864-4700
financialaid@ku.edu
KUMC Student Financial Aid
G035 Dykes Library
3901 Rainbow Boulevard
Kansas City, KS 66160
913-588-5170
financialaid@kumc.edu
Approved by:
Director of Financial Aid & Scholarships
Approved on:
Thursday, May 4, 2023
Effective on:
Wednesday, May 3, 2023
Review Cycle:
Annual (As Needed)
Keywords:
Federal Aid, Documentation of Attendance, Repayment of Financial Aid, Return of Title IV funds
Change History:
05/03/2023: Published in the Policy Library.
Academic Categories:
Academic Work & Evaluations
Financial Categories:
Student Financial Aid
Student Life Categories:
Financial Assistance
