Federal law requires a financial aid office to recalculate federal financial aid eligibility for Title IV funds for students who stop enrollment in all classes prior to completing 60 percent of a payment period or period of enrollment. This requirement does not apply to a student who withdraws from some but not all their classes in the quarter.

For R2T4 purposes, a withdrawal can be official or unofficial.

An official withdrawal occurs when a student who has begun attendance decides to withdraw (stop attending) all their classes before the quarter ends. Students are required to notify the Office of Admission. The effective date of the withdrawal is the date the student submits the withdrawal request via email, the effective date is the email date.

An unofficial withdrawal occurs if a student drops out without notifying the school. The withdrawal date is the documented last date of participation in an academically related activity.

For more information:

https://fsapartners.ed.gov/knowledge-center/library/functional-area/Return%20of%20Title%20IV%20Funds%20%28R2T4%29

Return of Title IV Funds The law specifies how Austin Medical Assistant Training must determine the amount of Title IV program assistance that has been earned if a student withdraws from school.

The Financial Aid Office will perform a Return of Title IV Funds calculation when a federal student financial aid (Title IV) recipient withdraws from his/her program. This process ensures that the institution correctly calculates the amount of federal student financial aid earned by the student and returns any unearned funds back to the respective federal student financial aid program(s). In some cases, the student will be required to return unearned Title IV funds. In addition, the Return of Title IV process may result in the student owing the school for unpaid tuition and fees. The requirements for Title IV program funds when you with draw are separate from the Austin Medical Assistant Training institutional refund policy. Therefore, the student may still owe a balance to the school to cover unpaid institutional charges.

A student may withdraw from Austin Medical Assistant Training at any time by notifying the Financial Aid office in writing of his/her decision to withdraw. Date of Determination that you are with drawn will be determined as follows:

1. Official Withdrawal – by the postmark on written notification, the date said notification is delivered to Austin Medical Assistant Training in person or the date of termination by Austin Medical Assistant Training.
2. Unofficial Withdrawal –
3. after 14 consecutive calendar days of absence, on the 15th day the student will be considered withdrawn.
4. failure to return on the approved return date of a Leave of Absence. In all cases, the Withdrawal Date will be the student’s Last Date of Attendance. It is highly recommended that the student speak to a Financial Aid Administrator prior to withdrawing. The portion of Title IV funds a student is allowed to retain is calculated on a percentage basis by dividing the total number of clock hours scheduled to be completed as of the withdrawal date in the period, by the total clock hours in the payment period. For example, if the student withdrew at 223 scheduled clock hours of a payment period that has 500 clock hours, the student has completed 50% of the period and therefore has earned 50% of federal student financial aid that was disbursed or could have been disbursed. That means that 50% of the aid that was disbursed or could have been disbursed remains unearned and must be returned to the federal student financial aid programs(s). A student earns 100% of federal financial aid once he or she has completed more than 60% of the scheduled clock hours in the payment period. If the amount of aid disbursed to the student is greater than the amount of aid earned by the student, the unearned portion must be returned to the federal student financial aid program(s).

In returning unearned funds, Austin Medical Assistant Training is responsible for returning the portion of the excess equal to the lesser of:

1. The institutional charges for the payment period multiplied by the unearned percentage of funds, or
2. The entire amount of excess funds.

A student may be required to return excess unearned Title IV funds. However, if the excess unearned funds consist of Title IV loans, then the student repays the loan(s) in accordance with the terms and conditions of the promissory note. If the excess unearned funds consist of a Title IV grant, the student is required to repay only the portion which exceeds 50 percent of the amount of grant received over $50. If the amount of aid disbursed to the student is less than the amount of aid earned by the student, a post-withdrawal disbursement may be available to assist the payment of any outstanding tuition and fee charges on the student’s account. The post withdrawal disbursement will be made from Title IV grant funds before available Title IV loan funds. If the post-withdrawal disbursement is grant only, student permission to disburse is not required. If part of the post-withdrawal disbursement is a grant, the institution may apply the grant funds to tuition and fees or disburse the grant funds directly to the student. If a student is eligible to receive a post-withdrawal disbursement from Title IV loan funds, the student will be asked for his/her permission to either disburse the loan funds to the student’s account to reduce the balance owed to the institution, or disburse the excess loan funds directly to the student. The student has the option to choose to have all or part of the funds disbursed. The funds will be disbursed according to the student’s preferred option. Austin Medical Assistant Training has 30 days from the date of Austin Medical Assistant Training I’s determination that the student withdrew to offer the post-withdrawal disbursement of a loan to the student. The student has 14 days from the date Austin Medical Assistant Training sends the notification to accept the post-withdrawal disbursement in writing. If the student accepts the post-withdrawal disbursement, Austin Medical Assistant Training will make payment within 30 days of receipt of the student’s acceptance of the disbursement. No portion of the post-withdrawal disbursement of loan funds will be disbursed if the student does not respond to Austin Medical Assistant Training’s notification. Once the unearned portion of the return of funds has been calculated, the Financial Aid Office will return the aid to the appropriate federal student financial aid program(s) within 45 days of the date of determination that the student withdrew. The order of return is specified below. The unearned funds will be “charged back” to the student’s tuition account, and this may result in unpaid tuition and fees. The students will then be billed for any unpaid institutional charges that result from the return of funds to the Title IV programs and will be responsible for full payment. A student will not be allowed to re-enter, register, or receive an official academic transcript until the outstanding balance has been paid in full.

Unearned Title IV funds will be returned to the federal student aid programs in the following order:

1. Federal Unsubsidized Direct Loan
2. Federal Subsidized Direct Loan
3. Federal plus Direct Loan
4. Federal Pell Grant