Return to Title IV Funds Policy

The Return to Title IV (R2T4) is a requirement for aid return in regards to federal student aid programs. This R2T4 policy is based on EARNED and UNEARNED aid at the time of total withdrawal from all classes for a term. The School must determine how much unearned aid must be returned by the School as opposed to how much the student must return.

During the first 60% of the period of enrollment (semester), a student earns Title IV funds in direct proportion to the length of time he or she remains enrolled. A student who remains enrolled beyond the 60% point earns all aid for the period. Unearned aid is the amount of disbursed Title IV aid that exceeds the amount of aid earned under the R2T4 formula.

The percentage of the period that the student remained enrolled is derived by dividing the number of days the student attended by the number of calendar days in the period (excluding breaks of 5 consecutive days or more). This is referred to as the Percentage Completed:

Number of days enrolled = Percentage Completed (% completed)
Number of calendar days in term/semester

EARNED aid is calculated as follows: Total aid disbursable x % completed

• If EARNED aid equals disbursed aid, no action is required
• If EARNED aid exceeds disbursed aid, the School must calculate a Post-Withdrawal Disbursement
• If EARNED aid is less than disbursed aid, the School must calculate the difference to be returned by Jefferson and by the student

[A]UNEARNED aid: Total aid disbursable EARNED aid
[B]Percentage of UNEARNED aid: 100 - % completed (% UNEARNED)

The School's share of unearned aid return is the lesser of Total amount of unearned aid [A] or School charges multiplied by the % UNEARNED aid [B]

The student's responsible share of return is the difference between the total unearned amount and the school's share. UNEARNED aid school's share = student's share.

The order of aid to be returned is as follows: Unsubsidized Stafford loan, Subsidized Stafford loan, Parent PLUS loan, Pell grant, Academic Competitiveness Grant (ACG), then Supplemental Educational Opportunity Grant (SEOG).

If the Financial Aid Office determines that a student owes a return of financial aid funds, the student will be sent a notice to inform the student of his/her financial obligation to the School. Keep in mind that the Return of Title IV funds calculation is separate from the School's Tuition/Fee Reduction schedule.

• The school may bill the student for any unpaid institutional charges.
• The Financial Aid Office will evaluate Tuition/fee reductions to Non-Title IV Aid Programs on a case-by-case basis.
• Aid will be returned to aid programs in the following priority: Federal Unsubsidized Stafford Loan, Federal Subsidized Stafford Loan, Federal PLUS Loan, Federal Pell Grant, Federal ACG program, Federal SEOG program, other Title IV or Title VII aid, other Federal, State, private, or institutional student financial assistance and to the student.
• The net amount (as opposed to the gross amount of the loan borrowed) of Federal Stafford and Federal PLUS loans will be used in the return calculation.
• Please remember that all financial aid recipients will be held accountable under the school's Satisfactory Academic Progress (SAP) policy.

Examples of Return policy:

A student who receives a Pell Grant drops from 12 to 9 credit hours during the 100% tuition/ fee reduction period. The student's Federal Pell Grant award must be adjusted from the full-time award to the three-quarter time award. The amount of aid adjustment would be returned to the Federal Pell Grant program. Because this student did not totally withdraw for the term, the Return of Title IV aid policy does not apply.

A student drops from 9 to 6 hours during the 50% tuition/fee reduction period. The only financial aid the student is receiving is a Federal Stafford Loan. The Return of Title IV aid calculation is not required since the student is still enrolled. The student would receive the tuition/fee reduction, but would be evaluated for Satisfactory Academic Progress from the standpoint of the original attempted hours (9).

A student totally withdraws from 12 credit hours during the 50% tuition/ fee reduction period. The term is 110 days in length and the date of withdrawal was on the 11th day of the term. The student received Federal Subsidized Stafford loan ($1750), Federal Pell Grant ($1000), Federal SEOG ($200) and KY CAP grant ($950) for the term.

a) Percentage completed	0.10 (11/110)
b) Total Disbursable aid	$2950 (Loan+Pell+SEOG)*
c) Earned aid	$295 ( b x a)
d) Total Unearned aid	$2655 ( b c)
e) School charges	x % unearned $1404 ($1560 x 0.90)
f) Jefferson's return share	$1404 (lesser of d or e)
g) Student s return share	$1251 ($2655-$1404)

* Since the CAP is not considered Title IV funds, it is excluded from the Return of Title IV calculation.

Allocation of Title IV aid to be returned is as follows:

	Jefferson's share of Unearned aid to return	$1404 Student's share of Unearned aid to return $1251
Unsubsidized Stafford loan	NA	NA
Subsidized Stafford loan	$1404	$346
PLUS loan	NA	NA
Pell Grant	NA	$452
ACG Grant	NA	NA
SEOG Grant	NA	NA
LEAP (if known Title IV)	NA	NA

Student's return of grant funds is reduced by half per Federal Return policy

CONTACT INFORMATION:

For assistance, please call 855.246.5282 (855.2GO.JCTC) or visit our Student Service Center online.