Withdrawal/Return of Title IV Funds (R2T4) Policy
Return of Title IV (Federal) Financial Aid
When a student withdraws during a term, the amount of federal financial aid earned by the student is determined on a pro-rata basis up to the end of 60% of the term. For example, if the student has completed 30% of the term, he or she has earned 30% of the aid originally scheduled to be received. Once a student has completed more than 60% of the term, he or she has earned all of his or her federal financial aid. (Federal Work Study funds are excluded from the return of Title IV funds requirements.)
If a student has received excess funds, the College must return a portion of the excess equal to the lesser of:
- the student's institutional charges multiplied by unearned percentage of funds, or
- the entire amount of the excess funds.
If the aid to be returned is in the form of a loan that has been released to the student (or parent) borrower, the student (or parent) can repay the loan in accordance with the terms of the promissory note over a period of time.
If the aid to be returned is in the form of grant funds, the law provides that the student may repay 50% of the grant rather than 100%.
Within 30 days of the date of GMC’s determination that a student withdraws, GMC will provide written notification to the student, or parent in the case of parent PLUS loan, that outlines results of the refund calculation and post-withdrawal disbursement eligibility, if applicable. Any unearned Title IV funds are returned within 45 days of the date GMC determined the student withdrew.
Order of Funds to be Returned
The funds must be credited to outstanding loan balances or to any amount awarded for the term in which a return of funds is required in the following order:
- Unsubsidized Federal Direct Stafford Loans
- Subsidized Federal Direct Stafford Loans
- Federal PLUS Loans received on behalf of the student
- Federal Pell Grants
- Federal SEOG Grants
Refund of Funds from the Georgia Student Finance Commission (GSFC)
Per the rules of the Georgia Student Finance Commission (GSFC), if a recipient withdraws after the census date (the end of the drop/add period), the student may receive state grant or scholarship payment for the costs incurred up to the term award provided the college’s tuition refund policy indicates that the student has incurred charges in the amount of the claim.
Refund of Private Scholarships, Grants and Loans
Unless otherwise requested by the donor or a private scholarship, grant or loan award, the refund/cancellation of private financial assistance follows the pro-rata policy for the cancellation of institutional charges and institutional financial aid.
Example of a Refund and Return of Title IV Financial Aid
Student enrolls for Fall Term, beginning on October 10 and ending on December 6 (57 days). Student withdraws from all courses on November 5.
Total Charges for Tuition and Fees = $2,010
October 10 to November 5 (withdrawal date)
= 26 days/57 days in term = 46% of the term
Return of Title IV Aid Calculation
Step 1 . Title IV Aid Disbursed on November 5:
Subsidized Direct Loan $ 866.25
Unsubsidized Direct Loan $990
Total aid disbursed $1,856.25
Step 2 . Percentage of Title IV Aid Earned:
26 days of enrollment/57 days in term = 46%
Step 3 . Amount of Title IV Aid Earned: 46% x $1,856.25 = $853.88
Step 4 . Total Title IV Aid to be Returned: $1856.25 - $853.88 = $1,002.37
Step 5 . Amount of Unearned Title IV Aid Returned by the School:
Subsidized Direct Loan $12.37
Unsubsidized Direct Loan $990.00
Total Title IV aid returned to federal programs $1,002.3