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Return to Title IV (R2T4) Policy

Important Information for Students Receiving Federal Financial Aid

In accordance with federal regulations, students who receive federal financial aid - such as Pells Grants, Direct Loans, or FSEOG - but withdraw from all courses before completing 60% of the term may be required to return a protion of their aid. The Return to Title IV (R2T4) policy determines the amount of financial aid earned based on the number of days attended, and any unearned funds may need to be repaid. 

Who This Applies To

This policy applies to students who:

  • Withdraw from all classes, officially or unofficially
  • Receive federal financial aid, including Pell Grants, Direct Loans, and Federal Supplemental Educational Opportunity Grants (FSEOG)

How R2T4 Works

Step-by-Step Process:

  1. Calculating Earned Aid: Chabot College determines the amount of financial aid earned based on the number of days attended in relation to the total days in the term.
  2. Determination of Earned Aid Percentage: The percentage of earned aid is calculated by dividing the number of days attended by the total days in the term.
  3. Return of Unearned Aid: If the total aid disbursed exceeds the amount earned, the unearned portion must be returned. Responsibility for returning unearned aid is shared between Chabot College and the student.

Consequences of Withdrawing

  • Withdrawing from all courses before completing 60% of the term may result in a required return of a portion of your financial aid.
  • You may be responsible for repaying any unearned financial aid received.
  • Additionally, any outstanding tuition balance could impact your ability to enroll in future courses or receive further financial aid until the balance is resolved.

How to Minimize the Impact of R2T4

Tips for Students:

  • Consult Before Withdrawing: Speak with a Financial Aid Advisor and your Academic Counselor to understand how withdrawing could affect your aid and academic progress.
  • Consider Partial Withdrawal: Remaining enrolled in at least one class may help you avoid an R2T4 calculation.

Understanding Financial Aid Repayment Requirements

If you have to return funds, you will be notified with details including:

  • The exact amount owed
  • Available payment options
  • Impact on future eligibility for financial aid

Example Calculation (Hypothetical Scenario)

Example:

  • Term Length: 100 days
  • Days Attended: 30 days
  • Earned Aid: 30% of Title IV funds
  • Unearned Aid: 70% returned proportionally by the student

Frequently Asked Questions (FAQs)

  • Title IV aid refers to federal student aid programs authorized under Title IV of the Higher Education Act, including Pell Grants, Federal Direct Loans, and Federal Supplemental Educational Opportunity Grants (FSEOG).
  • The withdrawal date is the date you officially notify Chabot College of your intent to withdraw. If you stop attending classes without formal notification, the withdrawal date may be determined based on your last documented academic activity.
  • If you stop attending classes without formally notifying the college, a Return to Title IV (R2T4) calculation is still required. In such cases, the college will use the semester’s midpoint to perform the calculation unless you confirm that you completed 100% of the course. The financial aid office will then verify your completion status with your instructor(s).
  • R2T4 only applies if you completely withdraw from all classes. Dropping individual classes may impact your financial aid award for the term but will not trigger an R2T4 calculation.
  • You will receive a letter or email from the Financial Aid Office explaining the R2T4 calculation, the amount of unearned aid, and any funds you are required to repay.
  • R2T4 calculations are federally mandated. However, if you believe there was an error, contact the Financial Aid Office for review.
  • If you owe unearned funds, the Financial Aid Office will provide payment instructions. You may be able to set up a repayment plan, but failure to repay could result in a hold on your account or affect your future financial aid eligibility.
  • We offer repayment options and can provide resources to assist you with payments.
  • No, federal regulations require repayment of unearned aid separately. Future financial aid cannot be used to cover an R2T4 repayment.
  • Yes, withdrawing may impact your SAP status since it can affect your GPA, pace (completion rate), and maximum time frame. This may make you ineligible for future financial aid unless you meet SAP standards or file a successful appeal.
  • No, if you complete 60% or more of the term, you are considered to have earned 100% of your financial aid, and no funds need to be returned.
  • If you must withdraw due to extenuating circumstances, such as a medical emergency, reach out to the Financial Aid Office to discuss your situation. While the R2T4 calculation is mandatory, there may be additional resources or support available to help you.
  • To avoid triggering an R2T4 calculation, try to stay enrolled in at least one class for the term. If you’re considering withdrawing, consult with the Financial Aid Office to understand your options.
  • Yes, withdrawing can affect your future financial aid eligibility. Unearned funds must be repaid, and your SAP status may be impacted. Addressing these issues promptly can help you regain eligibility.

For questions or personalized assistance, please contact the Financial Aid Office: