Return of Title IV Funds (R2T4)
Overview
Title IV Federal Financial Aid awards are based on a student’s enrollment status (number of credit hours) in Title IV federal aid eligible classes and the assumption that the student will attend class for the entire term for which assistance is awarded.
When a student ceases to be enrolled in Title IV federal aid eligible classes prior to the end of the term, a R2T4 recalculation must be completed to re-determine earned and unearned award amounts.
Federal Student Aid awards included in the R2T4 recalculation at Macomb are listed in the order unearned funds are returned: Unsubsidized Direct Stafford Loan, Subsidized Direct Stafford Loan, Pell Grant, Supplemental Educational Opportunity Grant (SEOG), and Iraq and Afghanistan Service Grant (IASG).
Official Withdrawal
A student’s official withdrawal date is the last day of physical attendance, determined once Macomb receives notice from the student that they are withdrawing. It is the student’s responsibility to officially drop or withdraw from any class that they will no longer be attending. Official notification must be made by the student either via My Macomb Self-Service or in writing to Office of Records & Registration.
Students are urged to contact the Financial Aid Office at 586.445.7999 before dropping, withdrawing or stopping attendance in classes to understand the impact on financial aid awards, such as reduction of aid and Satisfactory Academic Progress.
Students unable to complete the term due to military call up, hospitalization or illness are advised to submit a Special Circumstances request to the Records & Registration Office.
Unofficial Withdrawal
If a student ceases attendance in a class, but fails to initiate the official withdrawal process, the withdrawal date will be the last date of attendance reported by the instructor.
Changes in Enrollment Status
Students who drop classes during the 100% refund period or receive No Show (NS) grades for never attending within the first three weeks of class will have a reduction in credit hours for the term and financial aid will be recalculated according to Macomb Community College policy. Financial aid funds may be owed back from the student based on the reduction in credit hours.
Changes in Attendance
Students who do not complete all days in the term for Title IV federal aid eligible classes they were scheduled to attend by withdrawing or stopping attendance in any class will be reviewed by the R2T4 recalculation process.
In accordance with federal regulations, a student’s financial aid is recalculated based on the following questions:
- After beginning attendance in at least one class, did the student withdrawal or fail to begin attendance in a scheduled class used to determine the student’s eligibility for Title IV federal aid? If no, the student has not withdrawn and does not require a recalculation at this time. If yes, go to question 2.
- When the student withdrew, was the student currently attending any other classes used to determine the student’s eligibility for Title IV federal aid? If no, go to question 3. If yes, the student does not require a recalculation at this time, but recalculation could be required in the future if the student does not complete all the days for federal aid eligible classes they were scheduled to attend in the term.
- Did the student confirm attendance in writing for a Title IV federal aid eligible class in a later class in the period that begins no later than 45 calendar days after the end of the class they ceased attending?
If yes, the student does not require a recalculation at this time, but recalculation could be required in the future if the student does not complete all the days they were scheduled to attend in the term for Title IV federal aid eligible classes.
If no, the student has withdrawn and the R2T4 recalculation will be performed unless meets a module student exception below for withdrawal 7/1/21 or after.
Definition of a Module Student
Modules are classes that do not span the entire length of the term. Any student who is in enrolled in at least one Title IV federal aid eligible class that is less than the length of the term is classified for that term as a module student.Module students are not considered withdrawn if they meet any of the following criteria:
- The student completed all requirements for graduation
- The student successfully completed Title IV federal aid eligible classes in one or combination of modules that equals 49% or more of the number of countable days in the period.
- The student successfully completed Title IV federal aid eligible classes equal or greater than half time enrollment at time of withdrawal.
R2T4 Recalculation Process
The R2T4 process determines the percentage of the term the student completed (days completed / days scheduled to attend) and must be completed within 45 days from the date of withdrawal.
If the student does not exceed 60% completion, the student’s financial aid awards are prorated to the amount earned for the portion of the term attended.
If the student was disbursed more than the revised award, the student will be notified of reason for reduction, amount due, if the debt must be repaid to Macomb or the Department of Education, payment options and actions that will be taken for delinquent accounts. Unearned funds must be returned to the Department of Education within 45 days.
Program funds will be returned in the following order:
- Unsubsidized Direct Loans
- Subsidized Direct Loans
- Federal Pell Grants
- FSEOG
If the student was disbursed less than the revised award, the student may be due a post-withdrawal disbursement. All post-withdrawal disbursements are applied to student account first, and any resulting credit balance is handled as follows.
- For loan funds, the college will initiate an offer letter to the student within 30 days, allowing the student 14 days to respond to accept or decline the funds. The student may choose to decline some or all loan funds to avoid incurring additional debt.
- For grant funds, disbursement will be made within 45 days.
After R2T4 calculation is complete, any credit balance due to the student will be refunded within 14 days.