Return To Title IV Policy (R2T4)

Purpose and Scope

Federal law requires Alabama A&M University (AAMU) to determine the amount of federal Title IV financial aid a student has earned when the student completely withdraws or otherwise ceases attendance during a payment period. If the amount of Title IV aid disbursed exceeds the amount earned, the unearned portion must be returned in accordance with federal Return of Title IV Funds (R2T4) requirements. If the amount earned exceeds the amount disbursed, the student may be eligible for a post-withdrawal disbursement.

For most students enrolled in standard-term programs at AAMU, the payment period is the individual semester. The applicable payment period or period of enrollment is used for the R2T4 calculation in accordance with federal requirements.

Official Withdrawal Process

Students who wish to officially withdraw from Alabama A&M University must initiate the University's official withdrawal process through the Office of the Registrar. The University utilizes an electronic withdrawal form through Laserfiche, which is routed to the appropriate University departments for review and processing.

For R2T4 purposes, the withdrawal date for a student who officially withdraws is generally the date the student initiates the University's official withdrawal process or otherwise provides official notification of the intent to withdraw to the Office of the Registrar.

Completion of the University's withdrawal process may result in adjustments to institutional charges, federal financial aid, institutional aid, and the student's account balance in accordance with applicable University policies and federal requirements.

Identification of Unofficial Withdrawals

AAMU uses academic records, including Failure to Attend (FA) reporting, to identify students who may have ceased attendance without completing the University's official withdrawal process. When a student is identified as a potential unofficial withdrawal, the University will review available academic information to determine the appropriate withdrawal date in accordance with federal requirements.

For an unofficial withdrawal, the withdrawal date is generally the midpoint of the payment period unless the University has documentation of the student's last date of attendance at an academically related activity that may be used in accordance with federal requirements.

AAMU will determine unofficial withdrawals within the timeframes prescribed by federal regulations. For an institution not required to take attendance, this determination will be made no later than 30 calendar days after the earliest of the end of the payment period or period of enrollment, the end of the academic year, or the end of the student's educational program.

Failure to Begin Attendance

Alabama A&M University conducts attendance verification during the initial weeks of each payment period to confirm that students have begun attendance in their registered courses. If the University determines that a student did not begin attendance during the payment period or period of enrollment, the student is not considered to have withdrawn for purposes of the R2T4 requirements.

Federal Title IV aid eligibility will be adjusted in accordance with federal requirements applicable to students who fail to begin attendance. Title IV aid for which the student is not eligible will be canceled or returned, as applicable. Any resulting balance on the student's account will be the responsibility of the student.

R2T4 Withdrawal Exemptions

Before performing an R2T4 calculation, AAMU will determine whether the student qualifies for an applicable withdrawal exemption. A student is not considered withdrawn for R2T4 purposes if the student:

• Completes all requirements for graduation from the program before completing the days or hours scheduled for the payment period;
• Is enrolled in a program offered in modules and successfully completes one module or a combination of modules that includes 49% or more of the number of days in the payment period, after required exclusions; or
• Is enrolled in a program offered in modules and successfully completes coursework equal to or greater than the coursework required for the University's definition of a half-time student for the payment period.

Because AAMU offers courses in modules, including 8-week courses, the University will apply the federal module rules when determining whether a student has withdrawn and whether an R2T4 exemption applies. Completion of an 8-week course does not automatically establish that the 49% exemption has been met; the percentage is determined using the applicable federal methodology.

Calculation of Earned Title IV Aid

The amount of Title IV aid a student earns is determined by the percentage of the payment period completed as of the student's withdrawal date.

For students who withdraw after beginning attendance but before completing more than 60% of the payment period, the percentage of Title IV aid earned is generally equal to the percentage of the payment period completed.

For standard credit-hour periods, the percentage completed is generally determined by dividing the number of calendar days completed by the total number of calendar days in the payment period. Scheduled breaks of at least five consecutive days are excluded from the calculation as required by federal regulations.

Once a student has completed more than 60% of the payment period, the student is considered to have earned 100% of the Title IV aid disbursed and that could have been disbursed for the payment period. The University must still determine whether all earned aid was disbursed or whether the student is eligible for a post-withdrawal disbursement.

Title IV Aid Included in the Calculation

The R2T4 calculation includes applicable Title IV aid that was disbursed or could have been disbursed as of the student's withdrawal date, in accordance with federal eligibility requirements.

Title IV aid considered in the calculation may include Federal Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and other Title IV programs in which the University participates, as applicable.

The inclusion of Title IV aid as aid that could have been disbursed does not necessarily mean that the funds will be disbursed to the student. Any post-withdrawal disbursement will be made only when permitted under applicable federal requirements.

Post-Withdrawal Disbursements

If the R2T4 calculation determines that a student earned more Title IV aid than was disbursed prior to withdrawal, the student may be eligible for a post-withdrawal disbursement.

Eligible post-withdrawal disbursements of Title IV grant funds will be credited to the student's account in accordance with federal requirements. Once credited, the funds will be applied to eligible institutional charges, and any resulting credit balance will be processed in accordance with Alabama A&M University's normal student refund procedures. Any eligible grant funds that must be disbursed directly will be disbursed within the applicable federal timeframe.

If a post-withdrawal disbursement includes Direct Loan funds, AAMU will notify the student, or the parent in the case of a Parent PLUS Loan, within 30 days of the University's date of determination that the student withdrew. The notification will identify the type and amount of loan funds available and provide the recipient an opportunity to accept or decline all or a portion of the loan funds. The recipient will be provided at least 14 days to respond. Accepted loan funds will be disbursed as soon as possible, but no later than 180 days after the University's date of determination that the student withdrew. Once accepted and disbursed, the funds will be credited to the student's account, and any resulting credit balance will be processed in accordance with the University's normal student refund procedures.

Order of Return of Title IV Funds

When Alabama A&M University is required to return unearned Title IV funds, the funds will be returned, as applicable, in the following order:

1. Direct Unsubsidized Loans (other than Direct PLUS Loans)
2. Direct Subsidized Loans
3. Direct PLUS Loans (Graduate PLUS and Parent PLUS)
4. Federal Pell Grants
5. Federal Supplemental Educational Opportunity Grants (FSEOG)
6. Teacher Education Assistance for College and Higher Education (TEACH) Grants

AAMU will return the amount of unearned Title IV funds for which the University is responsible as soon as possible, but no later than 45 days after the University's date of determination that the student withdrew.

Student Responsibility for Title IV Funds

Alabama A&M University will return any unearned Title IV funds for which the University is responsible in accordance with federal R2T4 requirements. The return of funds by the University may result in a balance owed by the student to Alabama A&M University.

Any Title IV loan funds that are the responsibility of the borrower will be repaid in accordance with the terms and conditions of the applicable loan agreement and promissory note.

If the R2T4 calculation determines that a student is responsible for returning Title IV grant funds, the amount will be handled in accordance with applicable federal requirements.

Institutional Refund Policy and R2T4

Alabama A&M University's institutional tuition and fee refund policy is separate from the federal R2T4 calculation. The amount of tuition and fees adjusted by the University does not determine the amount of Title IV aid a student has earned.

When a student withdraws, the University will apply its institutional refund policy to determine any adjustment to institutional charges and will separately perform the federal R2T4 calculation to determine the amount of Title IV aid earned. As a result of these separate calculations, a student may have an outstanding balance owed to AAMU after Title IV funds are returned. The student is responsible for any remaining balance on the account.

The University's current tuition and fee refund schedule is published in the applicable University catalog and/or on the University website.

Institutional Aid

The R2T4 calculation applies to federal Title IV financial aid and is separate from Alabama A&M University's policies governing institutional scholarships, grants, tuition adjustments, and other non-federal assistance. Adjustments to institutional aid following a withdrawal will be made in accordance with the terms and conditions of the applicable award and University policy.

A student's eligibility for institutional financial assistance upon returning to Alabama A&M University will be determined in accordance with the eligibility and renewal requirements of the applicable scholarship, grant, or other institutional aid program.

Federal Timeframes

AAMU will complete R2T4-related actions within applicable federal timeframes. This includes returning unearned Title IV funds for which the University is responsible as soon as possible, but no later than 45 days after the University's date of determination that the student withdrew, and processing post-withdrawal disbursements within the applicable federal deadlines described in this policy.

Regulatory Authority

This policy is administered in accordance with Section 484B of the Higher Education Act and applicable U.S. Department of Education regulations and guidance, including 34 CFR 668.22. AAMU will apply current federal requirements when a federal requirement changes or when federal guidance provides additional direction.