The Return of Title IV Federal Funds Policy (R2T4) applies to students who have received federal financial aid assistance and have officially or unofficially withdrawn from Gateway Technical College. Federal financial aid assistance includes Pell Grants, Supplemental Education Opportunity Grant (SEOG), Direct Student Loans (subsidized or unsubsidized), and PLUS Loans for parents. The official withdrawal date is defined as the actual date the student begins the College’s withdrawal process. The student’s last date of academically related activity is used for unofficial withdrawals.
The amount of the federal financial assistance that a student earns is determined on a pro-rata basis. Once the student has completed sixty percent (60%) of the term, all financial aid is considered to be earned. Please contact the Financial Aid Office for the 60% refund dates.
If a student withdraws from school before 60% of the term has been completed or does not officially withdraw and receives all failing grades for the term, the Financial Aid Office will calculate the amount of unearned financial aid and return the funds in the following refund distribution order: Unsubsidized Direct Loan, Subsidized Direct Loan, Direct PLUS Loan, Federal Pell Grant, Federal Supplemental Education Opportunity Grant, and other Title IV assistance programs.
If a student receives all “F” grades for a term, they will be considered an unofficial withdrawal. If a student receives all “F” grades for a term but attended at least one class the entire term and “earned” the grade of “F”, the student will not be considered an unofficial withdrawal and no aid will be returned. If the student received financial aid and failed to attend classes, they are considered a “no show” and have not established eligibility for any financial aid. No shows must repay in full any funds received.
Gateway Technical College must return the Title IV funds to the programs from which they received them during the period of payment or period of enrollment, as applicable, up to the net amount disbursed from each source.
The student will be billed for the funds that Gateway Technical College is required to repay.
Consult with the Financial Aid Office prior to any withdrawal to discuss your situation or if you have any questions regarding your financial aid. Students who want to dispute an amount should address all concerns in writing to: Director of Financial Aid Gateway Technical College, 3520 30th Ave, Kenosha, WI 53144.
How Return of Title IV Funds are Calculated
Federal regulations assume that students “earn” federal financial aid in direct proportion to the percentage of the term they complete. Federal law requires schools to calculate how much federal financial aid a student has earned if that student:
Completely withdrawals, or
Stops attending before completing the semester, or
Does not complete all modules (classes which are not scheduled for the entire term) for which he/she registered at the time those modules began, or
Receives all F’s and W’s (or a combination of both) for all classes in any semester.
Based on this calculation, Gateway Technical College students who received federal financial aid and do not complete all their scheduled classes during a semester could be responsible for repaying a portion of the aid they received.
How is the financial aid that I earn calculated?
Students who received federal financial aid earn the aid they receive by staying enrolled and participating in college. The amount of federal financial aid the student earns is determined on a prorated basis. Students who withdraw or do not complete all registered classes during the semester may be required to return some of the financial aid they were awarded.
For example, if you complete 30% of the payment period or period of enrollment, you earn 30% of the aid you originally were scheduled to receive. This means that 70% of your scheduled awards remain unearned and must be returned to the federal government. Once you have completed more than 60% of the payment period or period of enrollment, you earn all of your federal financial aid.
The following formula is used to determine the percent of unearned aid that has to be returned to the federal government:
For Credit Hour Programs: The percent earned is equal to the number of calendar days completed up to the withdrawal date, divided by the total calendar days in the payment period (minus any scheduled breaks that are at least 5 days long).
For Clock Hour Programs: The percentage earned is equal to the number of clock hours the student was scheduled to complete in the period divided by the total number of clock hours in the period.
The payment period for many students is the entire semester. However, for students enrolled in modules (classes which are not scheduled for the entire semester), the payment period only includes those days for the module(s) in which the student is registered.
The percent unearned is equal to 100% minus the percent earned.
Withdrawals from all classes before aid disburses could result in a post withdrawal disbursement of aid based on percent earned before aid was disbursed. One hundred percent withdrawals, class cancellations, not attending and complete withdrawals may require adjustments and repayments of federal financial aid funds.
What is the withdrawal date?
The withdrawal date used in the return calculation of a student’s federal financial aid is the actual date the student begins the College’s withdrawal.
How are the unearned federal funds returned?
The College is responsible for returning unearned federal financial aid to the federal government. Amounts that must be returned will be applied in the following order:
Unsubsidized Direct Loan, Subsidized Direct Loan, Direct Parent PLUS Loan, Federal Pell Grant, Federal Supplemental Education Opportunity Grant
The College must return the lesser of 1) the total amount of unearned aid or 2) institutional charges multiplied by the unearned percentage.
The College will bill the student for any funds that were returned due to the Return of Title IV Aid calculation. The student must contact the Student Accounts office to make payments.
What happens if I don’t repay?
If a student does not pay funds due to the College that resulted after the College returned their unearned portion of the federal funds, the student’s record will be placed on hold. The student will not be permitted to register for classes or receive transcripts until the balance is paid in full.