IMM 7.084: Return To title IV (R2T4)
Federal financial aid is awarded under the presumption that a student will successfully
complete the classes for which they receive aid. Per 34CFR 668.22, a student that
withdraws from classes or fails to earn any passing grades may owe federal financial
aid back to GCSC and/or the United States Department of Education (US ED).
The calculation that determines whether a student owes federal financial aid back
is called Return to Title IV or R2T4. The law that governs R2T4 specifies how GCSC
must determine the amount of Title IV (federal financial aid) program assistance that
a student earns if they withdraw, officially or unofficially. The Title IV programs
that are covered by this law are Pell Grants, Iraq & Afghanistan Service Grants, Direct
Loans, Direct PLUS Loans, and Federal Supplemental Educational Opportunity Grants
(FSEOG).
A student is considered to be withdrawn when they cease attendance or fail to pass
any of their classes in a given payment period (semester). An "official" withdrawal
occurs when a student begins the withdrawal process, as described in the College Catalog,
for all of his/her active classes in a payment period. These are typically indicated
by a W1 registration status and grade. An "unofficial" withdrawal occurs when a student
ceases attendance in all of his/her classes or fails to pass at least one of his/her
classes in a semester or payment period.
The R2T4 calculation is performed by the Financial Aid Office for the appropriate
students in accordance with Federal R2T4 regulations based on the type of withdrawal,
withdrawal date, and appropriate institutional charges.
For official withdrawals, the withdrawal date used is the date the student began the
withdrawal process for their last active class.
For unofficial withdrawals, the withdrawal date used is usually the midpoint of the
student’s payment period except where a documented last date of academic related activity
(LDA) is past the 60% point of the class. In this case, the LDA is used as the withdrawal
date. Except for clock hour programs, GCSC is not required to take attendance and
is therefore able to use the midpoint as the withdrawal date for unofficial withdrawals.
For clock hour programs, the withdrawal date is the last date of attendance since
attendance is required. The scheduled clock hours, as of the withdrawal date, are compared
to the total clock hours in the payment period when performing the R2T4 calculation
for clock hour programs.
This calculation may result in the student owing GCSC and/or US ED, the student owing
nothing, or the student being offered a post-withdrawal disbursement.
Debts owed to GCSC will need to be repaid to the Business Office as soon as possible.
A hold will be placed on the student’s account preventing registration and access
to transcripts until the debt is paid in full. Students may also be responsible for
collection costs if GCSC uses the services of a collection agency.
Note – GCSC early implemented US ED's new R2T4 regulations, as detailed in the September 2nd, 2020 Federal Register, on 05/12/2021 per https://askregs.nasfaa.org/article/35011/if-we-early-implement-the-july-1-2021-r2t4-rules-does-it-apply-only-to-withdrawals-on-or-after-our-implementation-date.