Students on Federal Financial Aid who drop all their classes in a term are governed by two refund policies. The school’s policy applies to tuition and fee charges (not all fees are refundable). The R2T4 federal policy applies to how much Federal Financial Aid (Pell, FSEOG, Stafford Loans, PLUS loans) a student has earned at the time they dropped all their classes. Refunds are made to the DOE or lender. State programs like TPEG, TEXAS Grant and TEOG are not affected. Once 60% of the semester has elapsed (66 days in our examples) the student has earned or is allowed to keep 100% of the financial aid posted to his account. Effective on 7/1/06 amounts the student owes back to the financial aid program that do not equal or exceed 50% of the original amount posted to the account will not have to be paid back by the student.
Example 1
A student receives $2000 in a Pell Grant and drops classes at various times through the semester. The student has been charged $500 for tuition and fees.
| DAY | Drop Date | Tuition and Fee Refund Amount 500 * refund % per policy |
Financial Aid Refund Amount 2000 * (110 days / 110) |
School Pays to Program 500 * (110 days / 110) |
Student Pays to Program Column D – Column E |
New Overpayment (effective 7/1/06) |
|---|---|---|---|---|---|---|
| Day 0 | Jan.16 | 500 | 0 aid received | 0 | 0 | 0 |
| Day 10 | Jan. 26 | 350 | 1818 | 455 | 1363 | 1363 |
| Day 22 | Feb. 7 | 125 | 1600 | 400 | 1200 | 1200 |
| Day 31 | Feb. 16 | 0 | 1436 | 359 | 1077 | 1077 |
| Day 49 | Mar. 6 | 0 | 1109 | 277 | 832 | 0 |
| Day 59 | Mar. 16 | 0 | 927 | 232 | 695 | 0 |
| Day 80 | Apr. 6 | 0 | 0 | 0 | 0 | 0 |
| Total Term = 110 Days | ||||||
Example 2
A student receives $2000 in a Pell Grant and drops classes at various times through the semester. The student has been charged $500 for tuition and fees and $1000 for books were charged to her account.
| DAY | Drop Date | Tuition and Fee Refund Amount 500 * refund % per policy |
Financial Aid Refund Amount 2000 * (110 days / 110) |
School Pays to Program 1500 * (110 days / 110) |
Student Pays to Program Column D – Column E |
New Overpayment |
|---|---|---|---|---|---|---|
| Day 0 | Jan.16 | 500 | 0 aid received | 0 | 0 | 0 |
| Day 10 | Jan. 26 | 350 | 1818 | 1364 | 454 | 0 |
| Day 22 | Feb. 7 | 125 | 1600 | 1200 | 400 | 0 |
| Day 31 | Feb. 16 | 0 | 1436 | 1077 | 359 | 0 |
| Day 49 | Mar. 6 | 0 | 1109 | 832 | 277 | 0 |
| Day 59 | Mar. 16 | 0 | 927 | 695 | 232 | 0 |
| Day 80 | Apr. 6 | 0 | 0 | 0 | 0 | 0 |
| Total Term = 110 Days | ||||||
These examples assume that the student had not already received a check back for the credit balance on their account. Had a refund already been made, the student would have to return enough of it to bring the balance down to the final balance shown in each example.
| Jan. 26 drop | |||
|---|---|---|---|
| Example 1 | Example 2 | ||
| T & F | 500 | T & F | 500 |
| Fin Aid | -2000 | Books | 1000 |
| Due student | -1500 | Pell | -2000 |
| T &F refund | -350 | Due student | -500 |
| Pell back to DOE | 455 | T &F refund | -350 |
| -1395 | Pell back to DOE | 1364 | |
| Student returns to Pell | 1363 | 514 | |
| Refund to Student | -32 | Student returns to Pell | 454 |
| Balance Due | 968 | ||
| Feb. 7 drop | |||
|---|---|---|---|
| Example 1 | Example 2 | ||
| T & F | 500 | T & F | 500 |
| Fin Aid | -2000 | Books | 1000 |
| Due student | -1500 | Pell | -2000 |
| T &F refund | -125 | Due student | -500 |
| Pell back to DOE | 400 | T &F refund | -125 |
| -1225 | Pell back to DOE | 1200 | |
| Student returns to Pell | 1200 | 575 | |
| Refund to Student | -25 | Student returns to Pell | 400 |
| Balance Due | 975 | ||
| Feb. 16 drop | |||
|---|---|---|---|
| Example 1 | Example 2 | ||
| T & F | 500 | T & F | 500 |
| Fin Aid | -2000 | Books | 1000 |
| Due student | -1500 | Pell | -2000 |
| T &F refund | 0 | Due student | -500 |
| Pell back to DOE | 359 | T &F refund | 0 |
| -1141 | Pell back to DOE | 1077 | |
| Student returns to Pell | 1077 | 577 | |
| Refund to Student | -64 | Student returns to Pell | 359 |
| Balance Due | 936 | ||
| March 6 drop | |||
|---|---|---|---|
| Example 1 | Example 2 | ||
| T & F | 500 | T & F | 500 |
| Fin Aid | -2000 | Books | 1000 |
| Due student | -1500 | Pell | -2000 |
| T &F refund | 0 | Due student | -500 |
| Pell back to DOE | 277 | T &F refund | 0 |
| -1223 | Pell back to DOE | 832 | |
| Student returns to Pell | 832 | 332 | |
| Refund to Student | -391 | Student returns to Pell | 277 |
| Balance Due | 609 | ||
| March 16 drop | |||
|---|---|---|---|
| Example 1 | Example 2 | ||
| T & F | 500 | T & F | 500 |
| Fin Aid | -2000 | Books | 1000 |
| Due student | -1500 | Pell | -2000 |
| T &F refund | 0 | Due student | -500 |
| Pell back to DOE | 232 | T &F refund | 0 |
| -1268 | Pell back to DOE | 695 | |
| Student returns to Pell | 695 | 195 | |
| Refund to Student | -573 | Student returns to Pell | 232 |
| Balance Due | 427 | ||
| April 6 drop | |||
|---|---|---|---|
| Example 1 | Example 2 | ||
| T & F | 500 | T & F | 500 |
| Fin Aid | -2000 | Books | 1000 |
| Due student | -1500 | Pell | -2000 |
| T &F refund | 0 | Due student | -500 |
| Pell back to DOE | 0 | T &F refund | 0 |
| -1500 | Pell back to DOE | 0 | |
| Student returns to Pell | 0 | -500 | |
| Refund to Student | -1500 | Student returns to Pell | 0 |
| Refund to Student | -500 | ||
Example 3
A student receives 2000 in Pell Grant and drops classes at various times through the semester. The student has been charged $1500 for tuition and fees and has charged $1000 in books.
| DAY | Drop Date | Tuition and Fee | Financial Aid | School | School Pays |
|---|---|---|---|---|---|
| Refund Amt. | Refund Amount | charges not earned | lower amount | ||
| 500* ref. % per policy | 2000 * (110 days / 110) | 2500 * (110 days / 110) | of Col D or E | ||
| Day 0 | Jan.16 | 1500 | 0 aid received | 0 | 0 |
| Day 10 | Jan. 26 | 1050 | 1818 | 2275 | 1818 |
| Day 22 | Feb. 7 | 375 | 1600 | 2000 | 1600 |
| Day 31 | Feb. 16 | 0 | 1436 | 1795 | 1436 |
| Day 49 | Mar. 6 | 0 | 1109 | 1385 | 1109 |
| Day 59 | Mar. 16 | 0 | 927 | 1160 | 927 |
| Day 80 | Apr. 6 | 0 | 0 | 0 | 0 |
| Total Term = 110 days | |||||
Student does not owe any portion to the programs because the initial award was not enough to cover the whole initial balance.
| Jan. 26 drop | Mar 6 drop | ||
|---|---|---|---|
| T & F | 1500 | T & F | 1500 |
| Books | 1000 | Books | 1000 |
| Pell | -2000 | Pell | -2000 |
| Due from student | 500 | Due from student | 500 |
| T &F refund | -1050 | T &F refund | 0 |
| Pell back to DOE | 1818 | Pell back to DOE | 1109 |
| 1268 | 1609 | ||
| Student return to Pell | 0 | Student return to Pell | 0 |
| Balance Due | 1268 | Balance Due | 1609 |
| Feb. 7 drop | Mar 16 drop | ||
|---|---|---|---|
| T & F | 1500 | T & F | 1500 |
| Books | 1000 | Books | 1000 |
| Pell | -2000 | Pell | -2000 |
| Due from student | 500 | Due from student | 500 |
| T &F refund | -375 | T & F refund | 0 |
| Pell back to DOE | 1600 | Pell back to DOE | 927 |
| 1725 | 1427 | ||
| Student return to Pell | 0 | Student return to Pell | 0 |
| Balance Due | 1725 | Balance Due | 1427 |
| Feb. 16 drop | Apr 6 drop | ||
|---|---|---|---|
| T & F | 1500 | T & F | 1500 |
| Books | 1000 | Books | 1000 |
| Pell | -2000 | Pell | -2000 |
| Due from student | 500 | Due from student | 500 |
| T &F refund | 0 | T &F refund | 0 |
| Pell back to DOE | 1436 | Pell back to DOE | 0 |
| 1936 | 500 | ||
| Student return to Pell | 0 | Student return to Pell | 0 |
| Balance Due | 1936 | Balance Due | 500 |