Eligibility for Title IV funds (federal student financial aid funds) is based on the courses the student takes each trimester (full-time, half-time, etc.). Franklin University courses that do not span the entire length of the trimester are considered modular courses. Title IV funds are only disbursed and retained by the University if the student starts the courses for which the funds were disbursed. Eligibility for these funds may be recalculated if the student withdraws from a course(s) during a trimester. If a federal student financial aid recipient is considered a withdrawal from the trimester, the student will be subject to a Return of Title IV Funds (R2T4) calculation to determine the student's actual earned federal student financial aid.
The outcome of the R2T4 recalculation is dependent on the student's last day of attendance, how much federal student financial aid has been disbursed or is pending, and the number of days the student was scheduled to complete. Franklin University will not use a R2T4 Freeze Date and will therefore determine the number of days a student was scheduled to complete based upon the Title IV programs for which the student was eligible and which modules the student actually attended during the period. The last day of attendance, as determined by the institution from its attendance records, is either the last day of academically related activity or the last day of classroom attendance. The date of determination of an unofficial withdrawal for all students will be effective no later than the 14th day after the last day of attendance or academic related activity (see below Withdrawal Policy). This date is used to determine the percentage of the trimester that the student has completed and this percentage is applied to the amount of federal financial aid disbursed and pending to determine how much aid is earned for the trimester and how much needs to be removed. Weekends and non-class days are included in this calculation and institutional scheduled breaks of five (5) or more consecutive days are excluded from the calculation. A student will not be required to return any portion of their federal financial aid if they complete more than 60% of the term (as determined by the date of attendance reported by the instructor(s)).
Return of Title IV Funds Calculation Example - this example is not indicative of every situation. Each Return of Title IV Funds calculation determination is dependent on individual student circumstances.
The date that the Financial Aid Office is notified that the student is no longer enrolled (0hrs) or no longer concurrently enrolled, therefore necessitating a Return of Title IV Funds calculation can be determined by the table below:
|Type of Withdrawal
||Date of Notification
||Date that the student initiated the withdrawal
||Date that the grade was verified by the Registrar's Office
|Community College Alliance
||Date of official confirmation of non-attendance
The R2T4 calculation will be completed within thirty (30) calendar days of the date of the determination of withdrawal and all unearned funds will be returned to the respective federal financial aid programs as soon as possible, but no later than forty-five (45) calendar days from the date of the determination of withdrawal.
All tuition charges and mandatory fees, and book and supply advance funds to eligible students for the trimester that were present on the student account the day prior to the withdrawal date will be included in the R2T4 calculation as institutional charges.
Post Withdrawal Disbursements
In some cases, the student and/or parent may be eligible for federal financial aid funds that were not disbursed as of the student's withdrawal date. In such circumstances, the student and/or parent may be eligible for a post-withdrawal disbursement (PWD) of these eligible funds. The student's R2T4 calculation will indicate if the student and/or parent may be eligible for a PWD. All conditions listed below are required for a PWD to be considered:
- A valid Institutional Student Information Record (ISIR) with an eligible estimated family contribution;
- Meet the requirements for a late disbursement;
- A student must be previously packaged with federal aid eligibility;
- Award letter must be received and processed for loan eligibility;
- A completed Master Promissory Note (MPN) must be on file in order to be eligible for loans;
- Student must have a completed Entrance Interview on file to be eligible for loans;
- Loan(s) must have been certified;
- Student and/or parent must accept the eligible loan PWD in writing;
- Student must accept a grant PWD for non-institutional charges in writing;
- Student must have established half-time enrollment (starting courses) for a loan PWD; and
- For Pell Grant funds, the actual hours attended will be used to determine Pell eligibility.
Some pending loan funds may be included in the R2T4 calculation, but may not be eligible for a PWD due to regulatory restrictions.
After the determination of eligibility for a PWD, the student and/or parent are notified within 30 days of the date the institution determined the student withdrew, of the available funds and will be given 14 days to reply if eligible for a PWD of loan funds. If the student and/or parent fails to reply within that allotted deadline for a loan PWD, the loan funds will not be disbursed or will be returned if the PWD is inadvertently disbursed before the withdrawal was processed. Eligible grant funds from a PWD will automatically disburse to the student's Franklin University account. If the student has an unpaid balance and is eligible for a grant PWD, the funds equal to the student's outstanding balance will be credited to the student's account as soon as possible, but no later than 45 calendar days after the date of determination of withdrawal. If a grant or loan PWD results in a credit balance on a student’s account, it will be refunded to the student within 14 days of the disbursement of these funds.
The PWD notification to the student includes the following information:
- The amount and type of PWD available to the student and/or parents.
- How to respond to request the PWD and the deadline for that request.
- Notification that any remaining portion of the grant PWD that is not needed to pay outstanding charges may be sent to the student in the form of a refund check.
- Reminder that any loan funds must be repaid and do effect the student's total aggregate borrowing limits.
- Authorization for Franklin University to use any credit balance resulting from the PWD to pay any outstanding charges on the account for the current trimester, any past due charges for the current award year, and any past due charges up to $200 from prior academic years.
An overpayment occurs when a federal financial aid recipient receives more aid than they were eligible for. If the outcome of the R2T4 calculation finds that a student must repay all or part of a Title IV grant, then Franklin University will return the funds to the Department of Education on behalf of the student. Any balance owed as a result of the overpayment should be paid to the University.
Return of Unearned Title IV Funds
Once the R2T4 calculation is completed and it is determined that it is necessary that federal financial aid funds be returned, an email will be sent to the student indicating how much aid was returned and to which programs. The following information is included in the letter:
- Notification that the R2T4 calculation has been performed due to the student's official or unofficial withdrawal
- The amount of aid and the type (grants, loan funds, etc.) of aid returned
- Warning that financial aid eligibility will be adjusted on the account within the next 10 to 14 business days
- Indication that a balance may be due to the University or a refund may be due to the student and the student may request that the funds be used to pay down student loan debt
- Reminder that changes in enrollment status may affect Standards of Academic Progress and the student may be required to complete Exit Counseling
All grant and loan refund amounts are rounded to the nearest dollar for transmitting purposes. The University will return ineligible funds within 45 days of the student's date of determination of withdrawal. Funds will be returned in the following order, up to the amount disbursed from each source:
- Unsubsidized Direct Stafford loans
- Subsidized Direct Stafford loans
- Federal Direct PLUS Loan (parent or graduate)
- Federal Pell Grants
- Iraq Afghanistan Service Grant
- Federal Supplemental Educational Opportunity Grants (FSEOG)
- TEACH Grant
Institutional Refund Policy and R2T4 Calculation
It is important to note that when a student withdraws, the University is not only required to determine the amount of federal student financial aid the student has earned, but also the tuition and fees for which the student is responsible. One calculation determines the amount of charges the student owes and the other determines how much federal student financial aid may be retained to pay for the charges. In some cases, the student may be obligated to pay more institutional charges than funding retained and the student may owe a balance to the University that was previously funded with federal student financial aid. In other cases, the student may have excess funding that will be returned to the student. Following a student’s withdrawal, if a student has a credit balance, it will not be refunded to the student until the institution performs a R2T4 calculation. Once the R2T4 calculation is completed, any credit balances will be refunded to the student within 14 days.
Community College Alliance Students and R2T4 Calculations
For Community College Alliance (CCA) students, a confirmation of enrollment changes must be received from the participating institution prior to the determination of whether or not the student has withdrawn and an R2T4 calculation is necessary. If the Financial Aid Office is unable to obtain a positive confirmation of enrollment within 14 business days of initial notification of a withdrawal at Franklin, hours included as CCA hours will be assumed to be zero (0) and the R2T4 calculation will be completed based on Franklin credit hours and charges.