The return of Title IV funds is administered by Student Financial Services Ouachita Baptist University. This policy applies to students who withdraw (official, unofficially) or are dismissed from enrollment at SFS Ouachita Baptist University. It is separate and distinct from the SFS Ouachita Baptist University. Refund Policy (see Refunds section under Student Expenses in the University General Catalog). Therefore, the student may still owe funds to the school to cover unpaid institutional charges. The school may also attempt to collect from the student any Title IV program funds that the school was required to return. The calculated amount of the “Return of Title IV Funds” that is required for students affected by this policy are determined according to the following definitions and procedures, as prescribed by regulation.
The Institution has 45 days from the date the institution determines that the student withdrew to return all unearned funds for which it is responsible. The school is required to notify the student if they owe a repayment via written notice. The school must advise the student or parent that they have 14 calendar days from the date the school sent the notification to accept a post-withdrawal disbursement. If a response is not received from the student or parent within the permitted time frame or the student declines the funds, the school will return any earned funds that the school is holding to the Title IV programs. Post-withdrawal disbursement must occur within 120 days of the date the student withdrew.
The Return of Title IV Funds (R2T4) regulation does not dictate the institutional refund policy, however. The calculation of Title IV funds earned by the student has no relationship to the student’s incurred institutional charges.
Title IV funds are awarded to a student under the assumption that he/she will attend school for the entire period for which the assistance is awarded. When a student withdraws from all his/her courses, for any reason including medical withdrawals, he/she may no longer be eligible for the full amount of Title IV funds that he/she was originally scheduled to receive.
A school is required to determine the earned and unearned Title IV aid a student has earned as of the date the student ceased attendance based on the amount of time the student was scheduled to be in attendance.
If the student withdraws from all his courses prior to completing over 60% of a semester, he/she may be required to repay a portion of the federal financial aid that he/she received for that term. A pro rata schedule is used to determine the amount of federal student aid funds he/she will have earned at the time of the withdrawal. Federal aid includes Federal Stafford Loan (subsidized and unsubsidized), Perkins Loans, Parent Plus Loan, Pell Grants, SEOG Grants, ACG, SMART, TEACH and any other Title IV funds.
The return of funds is based upon the concept that students earn their financial aid in
proportion to the amount of time in which they are enrolled. Under this reasoning, a student who withdraws in the second week of classes has earned less of his/her financial aid than a student who withdraws in the seventh week. Once 60% of the semester is completed, a student is considered to have earned all of his financial aid and will not be required to return any funds.
Withdrawal before 60%:
SFS Ouachita Baptist University. must perform a R2T4 to determine the amount of earned aid up through the 60% point in each payment period. SFS Ouachita Baptist University will use the Department of Education’s prorate schedule to determine the amount of R2T4 funds the student
has earned at the time of withdrawal. After the 60% point in the payment period or period of enrollment, a student has earned 100% of the Title IV funds he or she was scheduled to receive during the period. The institution must still perform a R2T4 to determine the amount of aid that the student has earned.
Withdrawal after 60%:
For a student who withdraws after the 60% point-in-time, there are no unearned funds. However, SFS Ouachita Baptist University will still determine whether the student is eligible for a post- withdrawal disbursement.
Note: SFS Ouachita Baptist University has provided an example of the calculation used to determine the amount of unearned aid a student would be expected to repay based on the reported last day of attendance of the term from which a student withdraws.
A student’s official withdrawal date is determined by using one of the following:
In the event that a student does not go through the proper withdrawal procedures as defined in then Academic Information section of the University General Catalog the student’s unofficial withdrawal date is determined by using one of the following:
The student must inform in a timely fashion, in person or by email if personal appearance is not possible, the Student Financial Services Office at email@example.com of any withdrawal occurring during a semester.
Ouachita Baptist University does no allow students to take a Leave of Absence during a semester.
Student Financial Services (SFS) determines the return of Title IV funds percentage. Institutions are required to determine the percentage of Title IV aid “earned” by the student and to return the unearned portion to the appropriate aid program.
Step 1: Student’s Title IV information
SFS will determine:
Return of Title IV Funds (R2T4) Policy SFS Ouachita Baptist University
A) The total amount of Title IV aid disbursed (Not aid that could have been disbursed) for the semester in which the student withdrew.
A student’s Title IV aid is counted as aid disbursed in the calculation if it has been applied to the student’s account on or before the date the student withdrew.
B) The total amount of Title IV aid disbursed plus the Title IV aid that could have been disbursed for the semester in which the student withdrew.
Step 2: Percentage of Title IV Aid Earned:
SFS will calculate the percentage of Title IV aid earned as follows:
The number of calendar days completed by the student divided by the total number of calendar days in the semester in which the student withdrew.
The total number of calendar day in a semester shall exclude any scheduled breaks of more than five days.
Days Attended ÷ Days in Enrollment Period = Percentage Completed
If the calculated percentage exceeds 60%, then the student has “earned” all the Title IV aid for the enrollment period.
Step 3: Amount of Title IV Aid Earned by the Student
SFS will calculate the amount of Title IV Aid earned as follows:
The percentage of title IV aid earned (Step 2) multiplied by the total amount of Title IV aid disbursed or that could have been disbursed for the term in which the student withdrew (Step 1-B).
Total Aid Disbursed x Percentage Completed = Earned Aid
Step 4: Amount of Title IV Aid to be Disbursed or Returned:
If the aid already disbursed equals the earned aid, no further action is required. If the aid already disbursed is greater than the earned aid, the difference must be returned to the appropriate Title IV aid program.
Total Disbursed Aid – Earned Aid = Unearned Aid to be Returned
If the aid already disbursed is less than the earned aid, the SFS will calculate a Post- Withdrawal Disbursement.
Title IV aid is earned in a prorated manner on a per diem basis (calendar days or clock hours) up to the 60% point in the semester. Title IV aid is viewed as 100% earned after that point in time. A copy of the worksheet used for this calculation can be requested from the financial aid director.
In accordance with federal regulations, when Title IV financial aid is involved, the calculated amount of the R2T4 Funds” is allocated in the following order:
Return of the Title IV Aid, based on the type of aid disbursed, in the following order:
Loans must be repaid by the loan borrower (student/parent) as outlined in the terms of the borrower’s promissory note.
The student’s grace period for loan repayments for Federal Unsubsidized and Subsidized Stafford Loans will begin on the day of the withdrawal from the University. The student should contact the lender if he/she has question regarding their grace period or repayment status.
Institutional and student responsibility in regard to the Federal Return of Title IV Funds policy
SFS’s responsibilities in regard to the Return of Title IV funds policy include:
The student’s responsibilities in regard to the Return of Title IV Funds policy include:
In the event a student is eligible for a post-withdrawal disbursement based on the student’s budget, awarded financial aid and Title IV funds and R2T4 calculations, a post-withdrawal disbursement must be made only after the following conditions are met.
The post-withdrawal disbursement must be applied to outstanding institutional charges before being paid directly to the student.
The procedures and policies listed above are subject to change without advance notice.