Return of TITLE IV

The U.S. Department of Education specifies how the University of Louisville (UofL) must handle federal student aid Title IV funds when a recipient of such funds ceases to be enrolled prior to the end of a payment period or period enrollment. For Title IV aid recipients who are deemed to have 100% withdrew from coursework after beginning attendance and/or participation, a calculation is performed to determine the amount of federal student aid assistance earned through a process called the Return of Title IV (R2T4). The federal student aid programs included in the R2T4 calculations are Federal Direct Loans (unsubsidized and subsidized), Federal Direct PLUS Loans (Graduate/Professional and Parent), Federal Pell Grant, Federal Iraq Afghanistan Service Grant, Federal Supplemental Education Opportunity Grant (FSEOG), and Federal TEACH Grant.

Determination of Aid Earned vs Unearned:

The formula used in the R2T4 calculation categorizes the aid disbursed to your [the student’s] account into “earned aid” and “unearned aid”. During the first 60% of the period of enrollment (semester), you "earn" Title IV funds in direct proportion to the
length of time you remain enrolled. If you remain enrolled beyond the 60% point of the semester, you’ve earned 100% of the Title IV funds you were scheduled to receive for the semester.
UofL does not use a R2T4 freeze date, so the types of aid you are receiving determines the percentage of aid you get to keep. For a student enrolled in a standard, term-based program in all courses that expand the entire length of the term, the total days completed up to the student’s withdraw date is used as the number of days completed in the numerator of the R2T4 calculation, and the denominator of the calculation is based on the number of days within the standard period, excluding any scheduled breaks of five or more days during the term. For a student enrolled in a standard, term- based program in a course(s) that does not expand the entire length of the term (a module course/courses) or is enrolled in the one non-term program at UofL, a serious of questions are reviewed to determine if the student is considered a withdrawal during the period of enrollment (additional information below). If it is determined the student is a withdrawal for the term, the same method outlined above is used to determine the percentage of completed days for the numerator of the R2T4 calculation, and the denominator of the calculation will include all of the modules in which the student initiated attendance and, for Federal Direct Loans and FSEOG, any other modules for which the student was enrolled or registered on or after the first day of the period, even if the student did not attend the module, excluding any scheduled breaks of five or more days during this period. This calculation determines the percentage of aid earned for the term.
"Unearned" Title IV funds is the amount of disbursed aid that exceeds the amount of aid
earned under the R2T4 calculation. If you are contemplating withdrawing from all coursework PRIOR to completing more than 60% of the semester or if you are enrolled in a module course(s), then you should contact the Student Financial Aid Office to discuss how this will affect your federal student aid awarded.
If you receive (or UofL or your parent on your behalf) excess federal student aid program funds that must be returned, UofL must return a portion of the excess equal to the lesser of:

1. Your institutional charges multiplied by the unearned percentage of your funds, or
2. The entire amount of excess funds.

UofL must return this amount even if the amount of your federal student aid program funds were not kept.

If UofL is not required and does not return all of the excess funds, you may be required to return the remaining amount. For any Federal Direct Loan funds you must return, you (or your parent for a Federal Direct Parent PLUS Loan) will repay in accordance with the terms of the promissory note. That is, you make scheduled payments to the holder of the loan over a period of time.

Any amount of unearned federal grant funds you must return is called an overpayment. At UofL, unearned federal grant funds are returned to the U.S. Department of Education on your behalf, potentially creating an outstanding balance that must be paid to the University.

If you did not receive funds you earned, you may be due a post-withdrawal disbursement. If the post withdrawal disbursement includes Federal Direct Subsidized, Unsubsidized, and/or PLUS (Graduate/Professional/Parent) Loan funds, UofL must get permission before those funds can be disbursed to your account at UofL or directly to the borrower. You (and/or your parent for Federal Direct Parent PLUS Loan funds) may choose to decline some or all of the Federal Direct Loan funds, so additional debt is not incurred.

UofL will send a written notice outlining your eligibility for a post-withdrawal disbursement of federal loan funds within 30 days of the date determined you withdrew. You (and/or your parent for Federal Direct Parent PLUS Loan funds) will have 14 days to make your decision and respond to the University. UofL will automatically use all or a portion of your post-withdrawal disbursement of federal grant funds (Federal Pell Grant, Iraq Afghanistan Service Grant, and FSEOG) for tuition, fees, and room and board charges on your account. Your account will be credited with post-withdrawal disbursement within 180 days of the date of determination. For all other institutional charges, UofL will need your permission to use those funds to cover such charges, and if permission is not granted, you will be offered the funds. However, it may be in your best interest to allow UofL to keep the funds to reduce any outstanding charges owed to the University. For post-withdrawal grant disbursements not credited to your account at UofL to cover allowable charges, UofL will made the disbursement as soon as possible but no later than 45 days after the date of the determination that you withdrew.

Whether credited to your account at UofL or disbursed directly to you or your parent, post-withdrawal disbursements are made from available grant funds before available loan funds. If eligible to be refunded a Title IV credit balance, a refund will be made to your (or your parent for a Federal Direct Parent PLUS Loan) utilizing the University’s refund methods.

There are some federal student aid funds you cannot earn, even if scheduled to receive, once you withdraw because of other eligibility requirements.

For each federal Title IV aid recipient who withdraws, prior to the R2T4 calculation being performed and any potential post-withdrawal disbursement is determined, UofL first

completes an evaluation to determine if any recalculation of federal student aid funds is needed. For Federal Pell Grant recipients, verification will be sought to determine if a student began attendance or academically participated in all courses for which their Federal Pell Grant is based upon. If attendance/participation is not verified, a recalculation occurs prior to the R2T4 calculation being performed.

Return of Unearned Federal Student Aid:

The total federal aid disbursed at the point of withdrawal less the earned amount constitutes the unearned aid that must be returned to U.S Department of Education as soon as possible but no later than 45 days after the date of determination of a student’s withdrawal.

University of Louisville will allocate the return of unearned aid in the following order:

1. Federal Direct Unsubsidized Loan
2. Federal Direct Subsidized Loan
3. Federal Direct PLUS (Parent/Graduate/Professional) Loan
4. Federal Pell Grant
5. Federal Iraq Afghanistan Service Grant
6. Federal Supplemental Education Opportunity Grant (FSEOG)
7. Federal TEACH Grant

The total amount of aid returned may result in the student owing an outstanding balance to UofL, if the remaining earned aid does not cover charges for the same period of enrollment. Once the Student Financial Aid Office has completed the R2T4 calculation, if any aid is deemed unearned, a notice is sent via mail detailing the student’s revised eligibility.

If after the R2T4 calculation is performed the student is eligible to be refunded a Title IV credit balance, a refund will be made to the student (or parent for a Federal Direct Parent PLUS Loan) as soon as possible and within 14 days from the date the R2T4 calculation, utilizing the University’s refund methods.

Determination of Date of Withdrawal for Students who Officially Withdraw:

When a student withdraws from a term from which he/she received Title IV federal financial aid, since UofL is not a school required to take attendance, the Student Financial Aid Office will use the student’s official withdraw date in the R2T4 calculation, unless a last date of attendance/participation is provided through some other means that is prior to the student’s actual withdraw date. For information regarding the last day to officially withdraw from coursework during a term, please review the applicable academic calendar at https://student.louisville.edu/registrar/registration/calendars.

The R2T4 calculation is separate from any tuition refund you may receive. For information on tuition refund periods, please visit the Registrar’s Office published calendars at https://student.louisville.edu/registrar/registration/calendars

The Student Financial Aid Office will evaluate tuition/fee reductions to non-title IV aid programs on a case-by-case basis.

The University will monitor Title IV aid recipients enrolled in coursework based on standard-or- nonstandard term programs or if they are enrolled in standard-nonstandard term programs with modules (either all modules or a combination of modules included within a regular standard term that spans the entire period of enrollment). Modular session’s classes at UofL, are known as ‘First Half of Term’, ‘Second Half of Term’, or ‘Special’ course dates. It is always in your/the student’s best interest to talk with the Student Financial Aid Office to discuss the implications of withdrawing during a period of enrollment.

If a student is enrolled in a standard – or – nonstandard term program without modules, UofL completes the following review to determine if R2T4 calculation needs to be performed, beginning with asking:

1. After beginning attendance in at least one course that spans the entire payment period or period of enrollment, did the student stop attending or fail to begin attendance in a scheduled course applicable to the student’s Title IV-eligible program of study?

2. If the answer is No, the student has not withdrawn, and no action is required.

   1. If the answer is Yes, the following question is asked:

3. When the student stopped attending or failed to begin attendance in a scheduled course that spans the entire payment period or period of enrollment, was the student currently attending any other course(s)

   applicable to the student’s Title IV-eligible program of student in the payment period or period of enrollment?

   1. If the answer is Yes, the student is has made a schedule change. Recalculate Title IV aid per applicable program regulations and school policies.

   2. If the answer is No, student has withdrawn. Perform return of Title IV funds calculation. An evaluation of recalculation of aid will be done first if student never attended/participated in the class per applicable program regulations.

      If all title IV aid was not disbursed before the withdrawal occurred, per applicable regulations, the student may be eligible for a post-withdrawal disbursement. Each student will be evaluated on case-by-case situation.

If a student is enrolled in a standard – or – nonstandard term program offered in modules (either all modules or a combination of modules included within a regular standard term that spans the entire period of enrollment), UofL completes the following review to determine if R2T4 calculation needs to be performed, beginning with asking:

1. After beginning attendance in at least one course, did the student stop attending or fail to begin attendance in a scheduled course applicable to the student’s Title IV-eligible program of study?
   1. If the answer is Yes, the student has made a schedule change. The aid will be evaluated for recalculation of the Title IV aid per applicable program regulations and school policies.
   2. If the answer is No, the following question is asked:
2. Did the student complete all requirements for graduation?
   1. If the answer is Yes, student has not withdrawn. It may be necessary to recalculate Title IV aid per applicable program regulations and school policies.
   2. If the answer is No, the following question is asked:

3. Did the student successfully complete coursework applicable to the

student’s Title IV-eligible program of study equal to or greater than what the school considers to be half-time for the payment period or period of enrollment?

1. If the answer is Yes, the student has not withdrawn. It may be necessary to recalculate Title IV aid per applicable program regulations and school policies.
   1. If the answer is No, the following question is asked:
2. Did the student successfully complete coursework applicable to the student’s Title IV-eligible program of study in one module or a combination of modules that equals 49% or more of the number of countable days in the payment period or period of enrollment?
   1. If the answer is Yes, the student has not withdrawn. It may be necessary to recalculate Title IV aid per applicable program regulations and school policies.
   2. If the answer is No, the following question is asked:
3. Did the student confirm attendance in writing for a course applicable to the student’s Title IV-eligible program of student in a later module in the payment period or period of enrollment that begins no later than 45 calendar days after the end of the module the student ceased attending?
   1. If the answer is Yes, the student has not withdrawn. No return of Title IV funds calculation is required unless the student fails to begin attendance in a later module. It may be necessary to recalculate aid per applicable program regulations and school policies.
   2. If the answer is No, the student has withdrawn. Perform return to Title IV funds calculation. It may be necessary to first recalculate Title IV aid for courses the student never attended, per applicable program regulations.

Unofficial Withdrawals (F-grades):

A student who fails to officially withdraw and/or drop a course but ceases attendance in their coursework will be considered an “unofficial withdrawal”. Such students are assigned all unearned F-grades (UF) or have a combination of UF, a never/non- participation F-grade(s) (NP), and/or a recorded withdrawal(s) (W) as the final grade(s) recorded for the semester. UofL uses the greatest date reported by the instructor of an academically related activity in which the student participated as the withdraw date. If no date is provided for a course for which the student received a UF grade, the midpoint of the term will be used as the withdraw date for the R2T4 calculation. The same R2T4 calculation utilized for students who officially withdraw is used for students who unofficially withdraw.

The chart below describes the implemented grade types instructors are required to record when a F-grade is reported. All F-grades are required to be documented internally as earned (EF), unearned (UF), or never/non-participation (NP), all of which will reflect on the grade report as an ‘F’.

The Student Financial Aid Office must identify federal Title IV aid recipients who unofficially withdraw and determine the withdraw date within 30 calendar days from the earliest of the end of the term, the academic year, or the student’s education program.