Return to Title IV
Title IV funds are federal student aid (FSA) funds administered by the U.S. Department of Education. They include Federal Pell Grant, Iraq Afghanistan Service Grant (IASG), Federal Supplemental Educational Opportunity Grant (FSEOG), and Direct Loans (Subsidized Direct Loan, Unsubsidized Direct Loan, and Direct PLUS loan). FSA funds are awarded to a student under the assumption that the student will attend the institution for the entire period for which the assistance is awarded. When an FSA recipient withdraws from school prior to the end of a payment period, a Return of Title IV (R2T4) calculation will be performed to determine the amount FSA funds earned as of the date of withdrawal. Neumont uses a third-party processor to assist with this calculation.
Return of Funds Calculation
An R2T4 calculation will not be performed if an FSA recipient withdraws after completing the payment period and all FSA funds have been disbursed or they meet one of the following exceptions for programs offered in modules: completion of graduation requirements, successful completion of 49% or more of the days in the period, or successful completion of half-time enrollment (6 credits or more) in the period.
Students with a withdrawal date that occurs through the completion of sixty (60) percent of a payment period are eligible for a prorated portion of the FSA funds disbursed. Students with a withdrawal date that occurs after completing more than sixty (60) percent of the payment period earn one hundred (100) percent of the FSA funds. In compliance with federal regulations, the College will determine how much federal student financial aid the student has earned or not earned when a student who is a Title IV recipient withdraws.
The amount earned will be based on the percentage of the quarter that was completed in days up to and including the date of withdrawal. To calculate the amount earned, the College will determine the percentage by dividing the number of calendar days completed in the quarter by the total number of calendar days in the quarter.
If there is a scheduled break of five days or more, it will reduce the length of the quarter and if the scheduled break of five days or more occurs before the student's date of withdrawal, it will also reduce the number of calendar days completed.
If the student received more than the amount of federal student financial aid earned, the difference will be returned to the federal programs from which the funds were received. Excess federal student financial aid is returned by the College in the following order: Federal Direct Unsubsidized Loans, Federal Direct Subsidized Loans, Federal Direct PLUS Loans, Federal Pell Grant, and Federal SEOG.
Federal student financial aid funds will be returned to the aid source within forty-five (45) calendar days of the date the College determines the student has withdrawn.
The student may be required to return part of the unearned federal student financial aid funds. Any loan funds to be returned must be returned in accordance with the terms of the Master Promissory Note (MPN). If grant funds must be returned, the student must return any amount in excess of fifty (50) percent of the amount of grant funds originally received. For more information about student responsibilities in the return of funds, the student should refer to 34 C.F.R. § 668.22(h).
Post-Withdrawal Disbursement
If the total amount of FSA funds earned is less than the amount of FSA funds disbursed to the student or parent, for a Direct Parent PLUS loan, the difference or unearned funds will be returned to the applicable FSA programs. However, if the total amount of FSA earned is greater than the amount disbursed to the student or parent, for a Direct Parent PLUS loan, the student may be eligible to receive a post-withdrawal disbursement (PWD) of the earned FSA funds.
If the post-withdrawal disbursement includes loan funds, Neumont must obtain the student’s and parent's (if applicable) permission before it can disburse the loan. Students may choose to decline some or all the loan funds so that s/he does not incur additional debt. A notice will be sent to the student, and the signed, original document must be returned to Neumont within 14 days.
Neumont may automatically use all or a portion of the post-withdrawal disbursement of grant funds for tuition and fees. However, Neumont requires the student’s permission to use the post-withdrawal grant disbursement for all other school charges. If the student does not give their permission, the student will be offered the funds. It may be in the student’s best interest to allow the school to keep the funds to reduce the student’s debt with Neumont.
Unofficial Withdrawal
If the student ceases attendance without providing official notification (unofficial withdrawal), the withdrawal date used in the refund and Federal Return to Title IV calculation is the last date of attendance at an academically related activity.
If the student is unable to begin the institution’s withdrawal process or otherwise provide official notification of their intent to withdraw because of illness, accident, or other such circumstances beyond the student’s control, a third party may provide notice to the Office of the Registrar. The date of withdrawal is the date that most accurately reflects when the student ceased academic attendance due to the circumstances beyond the student’s control.