According to the Return of Title IV (R2T4) Fund regulations, any student who receives financial aid and withdraws from all classes prior to completing 60 percent of the semester, will have a R2T4 calculation performed to determine if the institution and/or student is required to repay any federal Title IV funds which were disbursed. This calculation will determine the percentage of completion at the time of withdrawal. The mid-point of the semester is used for withdrawal calculations. If the R2T4 calculation determines the student withdrew after completing more than 60 percent of the term, the student and school are considered to have earned 100 percent of their Title IV funds and enrollment fees. Students with an "FW" grade, at the end of the semester, are reviewed individually to calculate percentage of attendance and R2T4.
If the R2T4 calculation determines the student withdrew at or before the 60% point in the term, a notification letter is sent with the amount of Title IV aid the student must repay to the Title IV program(s). The school will also return any unearned portion of the enrollment fees to the Title IV programs. Students are billed by the college for any monies to be repaid.
The return of the Title IV funds to the programs from which the student received aid during the payment period must be in the following order.
- Unsubsidized Federal Direct Loans
- Subsidized Federal Direct Loans
- Federal Direct Plus Loans
- Federal Pell Grant
- Federal Supplemental Educational Grant (FSEOG)
- Other Financial Aid Programs
Time Frame for the Return of Title IV Funds
A school must return unearned funds for which it is responsible as soon as possible but no later than 45 days from the determination of a student's withdrawal. Citrus College returns any unearned funds as soon as the R2T4 calculation has been performed, but no later than 45 days from the determination of a student's withdrawal. The funds may be returned by one of the following methods:
- Deposits or transfers the funds into the school's federal funds bank account, and then awards and disburses the funds to another eligible student;
- Returns the funds to the Department electronically using the "Refund" function in G5;
- Issues a check to the Department.
Refund and Repayment Policies
There are two types of refund policies, the Citrus College Refund Policy and the financial aid repayment policy.
Citrus College Refund Policy
All deadlines must be met to be eligible for a refund and are subject to approval by the district. It is the student's responsibility to drop classes by the refund deadline date. All deadline dates vary according to the beginning and ending dates of classes. Please refer to Admissions and Records important dates for deadlines on the Citrus College website. Classes are dropped via WingSpan.
Checks are processed by an outside agency and are issued approximately 45 days after the first week of school. There are NO cash refunds. Students do not need to fill out a refund form. All refund checks are made payable to the student and sent to the mailing address on record.
Title IV Post Withdrawal Disbursements
A post withdrawal calculation is performed to determine if a student has not received all the Title IV aid he or she earned. The college will make a post withdrawal disbursement to the student for all federal grant eligibility and a post withdrawal offer for any loan eligibility. For example, if the student withdrew from all their classes during the semester, but the student did not receive all or any funds from the college and met all the eligibility criteria prior to withdrawing or stopped attending, the college will make a post withdrawal disbursement based on the percentage earned using the mid-point of the semester (if it is a grant). To do a post withdrawal of any loan proceeds, the college must have permission from the student. Additionally, the student must have had a loan certified (originated) by the college and met all eligibility criteria for the loan prior to withdrawing or not attending class (enrollment criteria for a loan will be determined based on the student's enrollment on their last date of attendance).
Student Aid Repayment Policy
When a student withdraws from all courses at any point in the term and has received a federal grant/loan disbursement (Federal Work Study is not counted in this calculation), the Financial Aid Office must determine the amount of earned aid through a R2T4 calculation. Any aid not earned must be repaid.
Students with overpayments are informed in writing if they owe an overpayment. Overpayments are due to Citrus College within 45 days. If the student does not repay Citrus College within 45 days, then the overpayment record is sent to the ED for collection. Students are then reported to the National Student Loan Data System (NSLDS).
An overpayment exists when a student receives a payment in excess of need/eligibility or when a student receives a payment incorrectly. In the event of an overpayment, the Financial Aid Office will notify the student, in writing, of the exact amount of the overpayment and the reason(s) it occurred. Students who owe an overpayment have 45 days to repay and will have their financial aid file put on hold.