The Department of Education introduced updates to the Return to Title IV (R2T4) calculation requirements that became effective on July 1, 2020. The two primary changes include the withdrawal exemptions and the R2T4 Calculation Freeze Date (RCFD). While an R2T4 calculation is applicable to all financial aid students who withdraw or cease attendance, the new changes apply to programs offered in modules.
For financial aid purposes, a student is generally considered to have withdrawn when they do not complete all of their scheduled days in the payment period. However – based on the updated requirements – it’s no longer that simple. Below are brief explanations of the updates made to the R2T4 calculation.
The new withdrawal exemption regulation adjusts the way days are counted to determine if an R2T4 is necessary (only programs offered in modules). A student may not be considered to have withdrawn if:
If a student meets any of the above items, an R2T4 may not be necessary. However, Pell grant recalculation rules may still apply for any courses the student does not begin.
An RCFD is an optional policy for programs offered in modules. It uses the student’s enrollment schedule at a fixed point in the denominator of the R2T4 to determine the amount of aid earned by the institution. The RCFD can be the same as a census date used by an institution. An institution needs to determine the scheduled days at the freeze date to use in the denominator in Step 2 of the R2T4.
Resources: https://fsapartners.ed.gov/knowledge-center/library/fsa-assessments/2019-04-02/return-title-iv-funds
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