Originator: Associate Vice President, Financial Aid
Subject: Federal Financial Aid Return of Title IV Funds Policy
Title IV funds are awarded to a student under the assumption that the student will attend school for the entire period for which the aid is awarded. Pursuant to federal regulation 34 CFR 668.22, the university is required to perform a Return of Title IV Funds (R2T4) calculation when a student who is receiving Title IV funds does not attend for the entire period. The requirement to perform a calculation is triggered by any of the following: course cancellations, disenrollment, when a student stops participating and receives a Failure Due to Non-attendance (FN) grade, withdraws, or drops his/her last class on or before the 60 percent attendance point for his/her term enrollment scenario. A student who certifies his/her intent to return later within the same term when he/she withdraws or drops will not require a calculation unless the student does not return as scheduled. If an R2T4 calculation is required, any unearned funds are returned to the Title IV program(s). This can result in a balance owed to UMGC, and the student is responsible for repaying the outstanding debt or it will be transferred to the State Central Collections Unit (SCCU).
Title IV Recipient: a student who is awarded aid under one or more of the following programs: Federal Unsubsidized Direct Stafford Loan, Federal Subsidized Direct Stafford Loan, Federal Perkins Loan, Federal Direct PLUS Loan (parent), Federal Direct Graduate PLUS Loan, Federal Pell Grant, Federal Supplemental Educational Opportunity Grant, Iraq Afghanistan Service Grant.
Term: Fall, Winter, Spring, or Summer
Session/Module: a course that does not span the entire length of a term.
Period of enrollment: the combination of sessions a student is enrolled in during a term.
Exclusions from Return of Title IV Funds: includes Federal Work Study, alternative loans, UMGC, state, and private grants/scholarships.
Drop: when a student rescinds his/her enrollment in class(es) either before the class has begun or during the drop period.
Withdraw: when a student either formally ends his/her enrollment in class(es) after the drop period or stops participating and receives a Failure due to Non-Attendance (FN) grade.
Earned Aid: Title IV funds that a student is entitled to keep based on the percentage of the term that was completed prior to withdrawal. Earned aid is determined based on a pro rata schedule that is set by the Department of Education.
Post-Withdrawal Disbursement (PWD): aid that is disbursed to a student after he/she has withdrawn because the student earned more aid than was disbursed prior to withdrawal.
Last Date of Participation (LDP): the last date of academically related activity is used as the withdrawal date for courses that are dropped or receive an FN grade. Examples of academically related activity include but are not limited to attending a face-to-face class, submitting an assignment or quiz, participating in the discussion area in an online course, or asking a question of a faculty member about the subject studied in the course. Academically related activity does not include logging into an online classroom, participating in academic advisement, or work/studying performed outside of the classroom.
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