Return to Title IV (R2T4) Policy

According to federal regulations, any time a student either ceases attending (unofficial withdrawal), 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
5.    FSEOG

If you did not receive all of the funds that you earned, you may be due a Post-withdrawal disbursement. If your post-withdrawal disbursement includes loan funds, we must get your permission before we can disburse them. You may choose to decline some or all of the loan funds so that you do not incur additional debt. SCC may automatically use all or a portion of your post-withdrawal disbursement of grant funds for tuition, and fees. SCC needs your permission to use the post-withdrawal grant disbursement for all other school charges. If you do not give your permission, you will be offered the funds. However, it may be in your best interest to allow SCC to keep the funds to reduce your debt at the school.

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 that concludes before the end of the regular semester) and then withdrawing from all other courses, may 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 official 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 for the charges previously covered by your financial aid.

If your outstanding balance is $200 or less, it is possible to use next semester’s financial aid to help pay your R2T4 balance. The college needs your permission to use the $200 of your current financial aid however, for the most part; students 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.

Official Withdrawals: To completely withdraw from the college the student must follow the appropriate steps outlined by the SCC Student Records Office. For questions regarding the withdrawal process contact the Registrar’s Office at 877-629-9722 or email the office at Somerset-StudentRecords@kctcs.edu . The student will be held responsible for all financial delinquencies that result from failure to complete the withdrawal process by the dates established in the Academic Calendar.

 

Unofficial Withdrawals: A student who does not complete the semester but fails to officially withdraw, student receives all failing grades (grades of E, F, W, or Z), and the instructor does not report in PeopleSoft a last date of academic related activity beyond 60% of the semester. Academic Related Activity includes:

  • Physical class attendance where there is direct interaction between instructor and student.
  • Submission of an academic assignment; study group assigned by school.
  • Participation in online discussion about academic matters.

Unofficial Withdrawals for R2T4 will be calculated at a 50% attendance rate.

Example #1:

William enrolled for the fall semester 
(August 17 to December 13). He was awarded 
a Federal Pell grant only. He withdrew from 
all his classes on September 23. William earned 33.3% of his Federal PELL grant. Enrollment 8/17 to 9/23

÷

Total number of days scheduled to complete

=

Percentage of semester completed

38 days

÷

114 days*

=

33.3%

Tuition and Fees: $2,392.00

Aid Disbursed: $2,363.00 (Federal Pell Grant)

Percentage of aid earned: 33.3%

Total Aid Earned: $787.00

Amount of aid left to be disbursed: $0.00

Percentage of unearned aid: 66.7%

Unearned Tuition and Fees: $1,596.00

Amount returned by SCC: $1,576.00

Amount student must return to Pell Grant program: $0.00

*Excludes Fall Break November 25 to November 29.

Example #2:

 Shelbie enrolled for the fall semester (August 17 
to December 13). She was awarded a Federal Direct 
Loan and a Federal Pell grant. She withdrew from all 
her classes on November 03. Shelbie earned 100% 
of her Federal Student Aid because she had documented academic related activity beyond 60% of the semester. Enrollment 8/17 to 11/03

÷

Total number of days scheduled to complete

=

Percentage of semester completed

79 days

÷

114 days*

=

69.2%

Tuition and Fees: $2,392.00

Aid Disbursed: $4,113.00

Percentage of aid earned: 100%

Total Aid Earned: $4,113.00

Amount of aid left to be disbursed: $0.00

Percentage of unearned aid: 0%

Unearned Tuition and Fees: $0.00

Amount returned by SCC: $0.00

Amount student must return to Pell Grant program: $0.00

*Excludes Fall Break November 25 to November 29.