How Withdrawing from Coursework Affects Federal Financial Aid
Federal financial aid eligibility at Adler Graduate School (AGS) is calculated based on an expectation that the recipient will remain enrolled throughout the term for which the aid is awarded.
Each student’s financial aid is “earned” in proportion to the length of time the student is enrolled. If a student completely withdraws from AGS prior to the end of the term for any reason (including family emergencies or medical reasons), a calculation is performed to determine the percentage of financial aid that was “earned” prior to the withdrawal. Any “unearned” funds are returned to the federal financial aid program.
The amount of earned and unearned financial aid is determined using the “Return to Title IV” (R2T4) calculation that is required by the U.S. Department of Education (ED). According to R2T4:
The percent of financial aid that is earned is equal to the number of calendar days completed by the student up to the withdrawal date, divided by the total number of calendar days in the term (excluding any scheduled breaks of five days or longer). The payment period for most students is the entire term. If the student completed 60% of the term or more, the student is determined to have “earned” all the Title IV aid for that term.
The percent of unearned financial aid is equal to 100 percent minus the percent earned.
Determining the Effective Withdrawal Date or Last Date of Attendance
The withdrawal date used in the R2T4 calculation is the actual date indicated on the official drop request that is submitted to the AGS Registrar. If a student stops attending classes without notifying AGS, the withdrawal date will be the last date of attendance as recorded by the instructor. If the instructor cannot provide attendance records, the effective withdrawal date will be the midpoint of the term or the last date of academic activity determined by AGS, whichever is later.
AGS must establish the withdrawal date to be used in the R2T4 calculation no later than 30 days after the end of the affected term. Documentation supporting the last date of academic activity may be provided by the student to establish a withdrawal date that differs from the withdrawal date determined by AGS. Such documentation must be submitted to the Director of Financial Aid within 30 days of the last date of the term. No recalculations of aid eligibility will be performed after that date.
Student Fails to Enroll
If a student receives Title IV financial aid, but never attends classes, AGS’s Financial Aid Office must return all disbursed funds to the federal aid programs.
Student Fails to Earn a Passing Grade in Any Course
If the student has not completely withdrawn but has failed to earn a passing grade in at least one class for the term, federal regulations require AGS to determine whether the student established eligibility for financial aid. A student establishes eligibility by attending at least one class or participating in any academic-related activity. If eligibility cannot be established, all disbursed funds must be returned to the federal aid programs.
Steps for Implementation of R2T4
Step 1: Student’s Title IV information
AGS’s Financial Aid Office will determine:
The total amount of Title IV aid disbursed for the term during which the student withdrew. Aid is considered to have been disbursed if it has been credited to the student’s account on or before the date the student withdrew.
The total amount of Title IV aid disbursed, plus the Title IV aid that could have been disbursed for the semester during which the student withdrew.
Step 2: Percentage of Title IV aid earned
AGS’s Financial Aid Office will calculate the percentage of Title IV aid earned by dividing
the number of calendar days completed by the student up to the withdrawal date by the total number of calendar days in the term (excluding any scheduled breaks of five days or longer). If the calculated percentage completed 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
AGS’s Financial Aid Office will calculate the amount of Title IV aid earned by multiplying the percentage of Title IV aid earned by the total amount of Title IV aid disbursed, plus the amount that could have been disbursed, for the term during which the student withdrew.
Step 4: Amount of aid to be returned the Title IV program or disbursed to the student
If the aid disbursed equals the earned aid, no further action is required.
If the aid disbursed is greater than the earned aid, the difference must be returned to the appropriate Title IV aid program (William D. Ford Federal Direct Loan Program). Unearned funds will be returned first to the Federal Direct Unsubsidized Loan and then to the Federal Direct Graduate PLUS Loan.
If the aid already disbursed is less than the earned aid, AGS’s Financial Aid Office will calculate a post-withdrawal disbursement.
Federal regulations require AGS to perform R2T4 calculations within 30 days of the date AGS determines the student has completely withdrawn from school. AGS must return any unearned funds owed to the Title IV program(s) as soon as possible, but not later than 45 days after the date AGS determines the student has completely withdrawn from school.
If the R2T4 calculation results in the student’s eligibility for a post-withdrawal disbursement, the student must be notified within 30 days of the date AGS determines the student has completely withdrawn from school. If the student accepts the post-withdrawal disbursement, AGS must issue the funds as soon as possible, but not later than 45 days after the date AGS determines the student has completely withdrawn from school.
Should you completely withdraw from Adler Graduate School, and you borrowed student loans through the federal direct loan program, you will need to complete Exit Counseling. Go to http://www.studentloans.gov; near the middle of the page under “Tools and Resources,” there is a link for Exit Counseling. Click there and follow the prompts.
You'll be asked to read through information describing your rights and responsibilities as a borrower of federal student loan funds and to respond to some "quiz" questions. You'll also be required to provide reference information - the names and addresses of individuals that will know your whereabouts after your loans are in repayment. The Financial Aid Office will receive confirmation electronically when you've completed the online counseling requirement.
To monitor compliance with this federal regulation your transcript will not be released until you've completed the counseling exercise.