Return to Title IV (R2T4) Policy
According to federal regulations, any time a student either ceases attending, or officially withdraws from all of their courses, a portion of the federal title IV aid that they received must be returned to the Department of Education, based on the percentage of time they actually attended. A student failing to complete more than 60% of their expected term will be subject to a return of a portion of their funds.
The following types of Tittle IV Funds would be reduced in the following order:
1. Unsubsidized Direct Stafford Loan
2. Subsidized Direct Stafford Loan
3. Direct Plus Loan
4. Pell grant
In most instances, passing at least one of your classes will prevent the college from preforming a R2T4 calculation; however, there are instances where passing a 1st bi-term course (a course which concludes before the end of the regular semester) and then withdrawing from all other courses, can cause you to owe an R2T4 balance. This is because, although that course was passed, it did not span the full length of your expected term (16 weeks in most cases).
If there are questions, we always encourage students to speak to a financial aid representative before making the decision to withdraw.
Within 30 days of a total withdrawal, a letter will be emailed to the email address that the college has on file, outlining what type of financial aid you received, and how much you owe to the college.
In some instances, it is possible to use next semester’s financial aid to help pay your R2T4 balance; however, for the most part, a student would have to pay the balance themselves. Again, we would encourage speaking to a financial aid representative as this can only be determined on a case-by-case basis.
If the balance is not paid after 120 days, the balance is subject to being sent to the Kentucky Department of Revenue (DOR) for collections. Once there, the balance will begin accruing interest.
As long as there is an outstanding balance on your account, you cannot register for courses with another KCTCS college, and you cannot have your official transcripts released for enrollment in other colleges or universities.