Return to Title IV (R2T4)

Financial Aid may be adjusted for the following circumstances:

• • Never Attended
    Federal financial aid will be adjusted down for classes the student does not begin attendance or is reported as never attended by the instructor. Classes dropped prior to its start date may also result in aid being reduced, and also applies to classes canceled by the institution due to lack of prerequisite or for other reasons.
  • Complete Withdrawals
    If a student completely withdraws (all F, W, or WI grades) from a semester without one passing grade, a recalculation of Federal aid may have to be done. Attendance for each class will be evaluated based on the last date of attendance reported from the instructors. Students that do not attend their classes for more than 60 percent of the semester may be required to pay a percentage of their aid back.
  • Module/Accelerated Class Withdrawals
    If a student withdraws from a module class and also have later starting class(es) that have not begun, written confirmation is required to confirm attendance in the later starting class(es). If written confirmation is not received Federal aid may be adjusted down, and the student may be required to pay a percentage of their aid back.

Academic attendance and attendance at an academically-related activity must include academic engagement, which includes, but is not limited to:

• • Physically attending a class where there is an opportunity for direct interaction between the instructor and students
  • Submitting an academic assignment
  • Taking an exam, an interactive tutorial, or computer-assisted instruction
  • Attending a study group that is assigned by the institution
  • Participating in an online discussion about academic matters
  • Initiating contact with a faculty member to ask a question about the academic subject studied in the course

Academic engagement is active participation by a student in an instructional activity related to the student's course of study that includes, but is not limited to:

• • Attending a synchronous class, lecture, recitation, or field or laboratory activity, physically or online, where there is an opportunity for interaction between the instructor and students
  • Submitting an academic assignment
  • Taking an assessment or an exam
  • Participating in an interactive tutorial, webinar, or other interactive computer-assisted instruction
  • Participating in a study group, group project, or an online discussion that is assigned by the institution
  • Interacting with an instructor about academic matters

Attendance is not:

• • Logging into an online class or tutorial without any further participation
  • Participating in academic counseling or advisement

If a recipient of Title IV grant or loan funds withdraws from class(es) after beginning attendance, the amount of Title IV grant or loan assistance earned by the student must be determined, and any unearned funds must be returned. If the amount disbursed to the student is less than the amount earned, the student may receive a post-withdrawal disbursement if eligible.

Delta College is required to follow rules set forth by the U.S. Department of Education through Code of Federal Regulations - CFR 668.22 and Program Integrity Regulations, which govern the treatment of Title IV Federal funds when a student withdraws from a class or semester.

There are three types of withdrawals that fall under the return to Title IV (R2T4) federal calculation regulations:

1. 1. Official Withdrawals
      Student has completed the formal drop process with the Registration Office.
   2. Unofficial Withdrawals
      If a student begins to attend class, then ceases attendance without providing official notification to the college considered an "unofficial withdrawal". For Title IV purposes, the withdrawal date for students who unofficially withdraw is the instructor’s reported last date of attendance.
   3. Module Withdrawals
      A module/accelerated class is defined as a class that is shorter in length than the length of the semester. If a student withdraws from a module that was used in determining a student's federal aid, a return of Title IV funds calculation (R2T4) may need to be performed.*

*Some module class exemptions from the R2T4 process may include:

1. 1. If student successfully completes Title IV eligible classwork in a module or combination of modules that includes 49% or more of countable days in the semester.
   2. If student successfully completes Title IV eligible classwork in a module or combination of modules that is equal to or greater than half time enrollment (6 or more credits).
   3. If student completes all requirements for graduation.
   4. If student confirms attendance in writing (for a Title IV eligible class) for a later starting module in the semester, which begins no later than 45 calendar days after the end of the module they ceased attending.

If a student completely withdraws (all F, W, or WI grades) from a semester, attendance for each class will be evaluated based on the last date of attendance reported from the instructors. For successfully completed module classes, the end date of the class determines last date of attendance.

When a student is considered to have withdrawn from a semester and received Title IV Federal financial aid, Delta College is required to determine the amount of earned and unearned Federal aid based on attendance. The determined unearned Federal aid must then be returned to the appropriate federal aid program(s). Students that have attended more than 60% of the semester are not required to return their Title IV Federal aid.

The following steps will be followed when determining the amount of Federal aid to be returned upon withdrawal:

1. 1. Determine percentage of semester attended by student. Divide the number of days attended by the number of days in the semester. If the calculated percentage exceeds 60%, the student has earned all of their Federal aid.
   2. Calculate the amount of earned Federal aid. Multiply the percentage of the semester attended by the total Federal aid disbursed (or could have been disbursed as defined by late disbursement rules).
   3. Determine amount of unearned aid to be returned to the applicable Federal aid programs. Subtract the amount of earned federal aid from the total amount of federal aid disbursed. The difference is considered “unearned” and must be returned to the appropriate Federal aid program(s).
   4. Return of Title IV funds by institution and student:
      • Delta College will return unearned Title IV Federal aid up to an amount that is equal to the total institutional charges for the semester multiplied by the percentage of the Federal aid that was unearned.
      • The student will be responsible for the balance of unearned Federal aid.
      • If the student’s portion of unearned aid is a loan, Delta College will restore the loan funds to the appropriate Federal account, and the student will be responsible for repaying Delta College for the loan overpayment. The terms of the original loan repayment agreement will apply. If the student's portion of unearned aid is a grant, Delta College will restore the grant funds to the appropriate Federal account and the student will be responsible for repaying Delta College for the grant overpayment.

Delta College must offer any post-withdrawal disbursement of loan funds within 30 days of the withdrawal date. Delta College must always return any unearned Federal aid within 45 days of the student withdrawal date.

Delta College must disburse any earned Federal grant funds, determined as a post-withdrawal disbursement, within 45 days of the withdrawal date. Accepted loan funds earned, determined as a post-withdrawal disbursement, must be disbursed within 180 days of the withdrawal date.

Unearned Title IV Funds will be returned to federal programs in the following order:

1. 1. Federal Unsubsidized Stafford Loan
   2. Federal Subsidized Stafford Loan
   3. Federal PLUS Loan
   4. Federal Pell Grant
   5. Iraq and Afghanistan Service Grant
   6. Federal Supplemental Educational Opportunity Grant

Example of a Title IV Return of Funds calculation for a Federal aid recipient who is considered to have withdrawn*:

Institutional Charges – $5,000
Title IV Federal Loans – $2,000
Title IV Federal Grants – $1,000
Total Title IV Federal aid – $3,000
Student withdrew on 35th day of a 110-day semester,

Percent of semester attended:   35/110 = 32%
Percent Unearned 100% - 32% = 68%
Amount of Federal aid unearned $3,000 x 68% = $2,040

Delta College is responsible for returning the lesser of unearned Federal aid ($2,040 from above) or unearned institutional charges ($5,000 x 68% = $3,400). Delta College will return aid as follows:

• Title IV Loans – $2,000 (student's remaining loan debt = 0)
• Title IV Grants – $40

*Every student situation is different based on enrolled classes, and the example shown may not apply to every student. Questions regarding the Return of Title IV Funds process for students should be addressed to the Financial Aid Office.

The student's responsibility is the amount of aid unearned ($2,040) less school responsibility ($2,040), which is zero. Students are responsible for paying Delta College any unearned aid, and must make arrangements with the Student Billing Office to repay the funds in full.

If you purchased books with Federal aid through the Delta College Bookstore that are not needed because of dropped/canceled classes, refer to the Bookstore’s refund policy.  

If your enrollment has been impacted by COVID-19 and you are receiving Federal aid, please contact the Financial Aid Office for guidance.

Delta College reserves the right to amend the Return to Title IV (R2T4) process at any time in order to comply with Federal regulations.