It is the responsibility of the Office of Financial Aid to complete the calculation of the Title IV returns within the time frame required by federal regulation. Any student with Title IV funding that has attended at least one class will be run through the R2T4 calculation process. The FAO provides the student with a withdraw calculation form once R2T4 has been completed. Students are instructed to complete the counseling online at www.studentaid.gov. The University of Pikeville returns the calculated amount to ED which may result in a bill owed to the University of Pikeville. The student receives notification from the Finance Office of any remaining balance.
Title IV Return Calculation Procedures – The following steps outline the general procedures used to calculate a Title IV return:
- Determine the last date of attendance as indicated on the withdrawal form or determined by the Registrar.
- Determine percentage of aid earned by calculating the percentage of the period that the student completed.
- Aid is prorated because of the formula.
- Determine the amount of earned aid by applying the percentage of the total Title IV aid that was or could have been disbursed.
- Determine the amount of unearned aid by subtracting earned aid from disbursed aid.
- If unearned funds must be returned, determine the school’s and the student’s shares.
- If unearned funds must be returned, allocate unearned aid to the program from which the student was funded.
- Return the institution’s share and any funds repaid by the student or refer the student to ED; or make the post-withdrawal disbursement.
- Institutional aid is prorated at the same rate as federal aid.
- State aid is returned based on the week they withdraw.
- Week 1- return 100% of aid.
- Week 2- return 50% of aid.
- Week 3 and beyond- no return of funds
- A letter is generated notifying the student of earned aid eligibility.
The portion of the unearned funds the school is responsible for paying is returned by the school immediately. The student is then notified of the school’s responsibility to return funds to the federal aid program, and is subsequently billed, via a balance on their institutional account for any funds the school was required to return. Any funds returned by the school represent a debt owed by the student to the University of Pikeville. A student may not enroll in subsequent terms, or have academic records released, until such time that all debts have been repaid to the institution. The University of Pikeville is required to return unearned financial aid assistance in a particular order when a student officially or unofficially withdrawals:
- Unsubsidized Direct Loans
- Subsidized Direct Loans
- Federal Perkins Loans
- Direct PLUS Loans
- Federal PELL Grant
- Federal SEOG
- TEACH Grant