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Return of Title IV Funds (R2T4)

Overview

Federal Financial Aid awards are based on a student’s enrollment status (number of credit hours) 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 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 in person at the Records & Registration office, by faxing or e-mailing a copy of the completed withdrawal form to the Records & Registration office, or online via their account on My Macomb Self-Service.

Students are urged to contact the Financial Aid Office at 586.445.7999 before dropping, withdrawing or stopping attendance in courses 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 semester. This represents a change in enrollment status, 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 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:

  1. Did the student withdraw or stop attending a course they were scheduled to attend? If no, the student does not require a recalculation at this time. If yes, go to question 2.
  2. When the student withdrew or stopped attending this course, was the student still attending any other courses? 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 they were scheduled to attend in the term.
  3. When the student withdrew or stopped attending this course, did the student confirm attendance in another course beginning later in the term? If no, the student’s financial aid must be recalculated. 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.

If a student earns a passing grade in a class that is shorter in length than the total number of days the student was scheduled to attend for the term, recalculation is still required.

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 sent a statement indicating the 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.

If the student was disbursed less than the revised award, the student may be due a post-withdrawal disbursement. For loan funds, the college must get the student’s permission before it can disburse them. The student may choose to decline some or all of the loan funds to avoid incurring additional debt. For grant funds, the college may automatically use all or a portion for institutional charges and any remaining funds will be disbursed to the student.