Purpose and Scope 

This policy outlines the process for calculating and returning Title IV federal financial aid funds when a student withdraws from the Maryland Institute College of Art. It applies to all students who receive Title IV financial aid, including Federal Pell Grants, Federal Direct Loans, and other federal student aid programs. R2T4 impacts students who receive funding and subsequently withdraw from all courses before completing 60% of the enrollment period. 

Regulatory Reference 

This policy complies with the federal regulations regarding the return of Title IV funds, which are set forth in 34 CFR 668.22. 

Withdrawal Definition 

• Official Withdrawal: An official withdrawal occurs when a student formally notifies the institution of their intent to withdraw from all courses. 

• Unofficial Withdrawal: An unofficial withdrawal occurs when a student ceases attendance without providing formal notification, as determined by the last date of academic activity or the Professor's entry of a Technical Failure "TF" grade for all courses attended.  

Determination of Withdrawal Date 

• Official Withdrawal Date: The date the student begins the official withdrawal process or notifies the institution of their intent to withdraw. 

• Unofficial Withdrawal Date: The last date of attendance at an academically related activity, as documented by the institution. 

• F Grade: Professors are asked to enter an F grade for students who have failed a course but attended class and have an attendance history throughout the term. This indicates that the student “earned” the F grade by participating in the course activities.  

• TF (Technical Failure) Grade: This grade should be used if a student stops attending class at any point in the semester. Professors must enter the Last Date of Attendance (LDA) for any student who did not "earn" their F grade by failing to attend and participate in the course. 

Calculation of Earned and Unearned Aid 

• Percentage of Aid Earned: The percentage of the payment period or term completed determines the amount of Title IV aid earned. This is calculated by dividing the number of days completed by the total number of days in the period (excluding scheduled breaks of five days or more). 

• Percentage of Aid Unearned: The unearned aid is the complement of the earned aid percentage. For example, if a student completes 30% of the payment period, 70% of the aid is unearned. 

Return of Unearned Aid 

• Order of Return: Title IV funds will be returned in the following order as specified by federal regulations: Unsubsidized Federal Direct Loans, Subsidized Federal Direct Loans, Federal Direct PLUS Loans, Federal Pell Grants, Iraq and Afghanistan Service Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), and other Title IV programs. 
  

• Institutional Responsibility: The institution will return unearned aid to the appropriate Title IV program within 45 days of determining the student’s withdrawal. 
  

• Student Responsibility: If unearned funds are returned, the student may owe a repayment to the institution. The student will be notified of any balance owed. 

Post-Withdrawal Disbursements 

• Eligibility: Students may be eligible for a post-withdrawal disbursement if they earned more aid than was disbursed before withdrawal. 

• Notification and Authorization: The institution will notify the student or parent (in the case of a PLUS loan) of their eligibility for a post-withdrawal disbursement. Authorization is required before loan funds are disbursed. 

Timeframes 

• Return of Funds: The institution must return unearned funds within 45 days of determining the student’s withdrawal date. 

• Notification: Students will be notified of their obligations and the calculation outcome within 30 days of the determination of withdrawal. 

Communication and Notification 

• Student Notification: Students will be informed of the R2T4 policy during the financial aid counseling process and through institutional publications such as the student handbook and website. 

• Counseling: Financial aid counseling is available to help students understand the impact of withdrawal on their financial aid. 

Procedures and Responsibilities 

• Institutional Procedures: The institution follows established procedures to determine the withdrawal date, calculate earned and unearned aid, return unearned funds, and notify students. 

• Student Procedures: Students should consult with the financial aid office before withdrawing to understand the financial implications and complete the necessary forms.  

Recordkeeping and Documentation 

• Documentation Requirements: The institution will maintain records of the withdrawal date, calculation of earned and unearned aid, and return of funds for at least three years. 

• Compliance and Audits: MICA will ensure compliance with federal regulations and be prepared for audits by maintaining accurate records and documentation. 

Impact on Future Aid 

Satisfactory Academic Progress (SAP): Withdrawal may impact a student’s SAP status and future eligibility for Title IV aid. Students must meet SAP standards to receive federal aid. 

Reapplication for Aid: Students who withdraw and later return must reapply for financial aid and meet all eligibility requirements. 

Policy Review and Updates 

• Regular Review: This policy will be reviewed annually to ensure compliance with federal regulations and institutional policies. 

• Policy Changes: Any changes to the policy will be communicated to students and staff through institutional publications and updates to the student handbook and website.