Return of Title IV Funds Summary
Students who have already received Title IV aid disbursements may lose some aid if they opt to withdrawal, depending upon the percentage of the class completed. If a student leaves the institution prior to completing 60% of a payment period or term, the financial aid office recalculates eligibility for Title IV funds. Recalculation is based on the percentage of earned aid using the following Federal Return of Title IV funds formula: Percentage of payment period or term completed = the number of days completed up to the withdrawal date divided by the total days in the payment period or term. (Any break of five days or more is not counted as part of the days in the term.)
When a student withdraws by using the “Withdrawal from All Classes” form, the Director of Financial Aid will be notified by the Academic Dean and will perform a Return to Title IV (R2T4) calculation. Should a refund be required, the Director will transmit a negative “award”, requesting a refund to the Student Accounts Manager and the aid funds will be removed from the student’s account. The Student Accounts Manager will then transfer funds to KCC’s Federal Account. The Director will send a negative disbursement record to CPS via EDExpress or COD and when the negative disbursement is acknowledged and accepted, use G5 to generate an electronic refund of the funds. This process shall be completed within 45 days from the date of determination of withdrawal.
On occasion students leave school without properly withdrawing. Since KCC instructors take daily attendance, the instructors must notify the Academic Dean when any student fails to attend class for a two-week period. The academic dean should then investigate the reason for the absences and determine if the student has dropped out. The Academic Dean will notify all affected offices of the student’s withdrawal and determine the date of withdrawal as outlined above. Upon notification, the Director will perform the R2T4 calculation and process as outlined above.
If the Director learns that a student has left and has not received official notification, the Director will immediately send a written request to the Academic Dean requesting a determined withdrawal date. (DOD) When the Academic Dean has provided this date, the Director will perform the R2T4 calculation and process as outlined above.
In the event that a refund is due the Refunds will be allocated in the following order:
· Unsubsidized Federal Stafford Loan
· Subsidized Federal Stafford Loan
· Federal Pell Grant
· Other state private and institutional aid
· The student
Any post-withdrawal disbursements will be paid by KCC check to the student and will be sent to the latest address on record.
See also: https://faaaccess.ed.gov/