Federal Student Aid - IFAP

Publication Date: June 30, 2006

Author: G. Kay Jacks, General Manager, FSA Application, School Eligibility and Delivery Services

Summary: HERA Operational Implementation Guidance - Return to Title IV Funds worksheets

Posted on 06-30-2006

Return to Title IV Funds Worksheets

On May 19, 2006, Federal Student Aid posted an electronic announcement to our IFAP web site that provided information on the changes required to the Return to Title IV Funds (R2T4) software and worksheets, as a result of the Higher Education Reconciliation Act of 2005 (the HERA). That announcement also noted that the PC version of the R2T4 software was archived on June 1, 2006 and cannot be used to perform R2T4 calculations for withdrawals that occur on or after July 1, 2006.

This announcement alerts the community to the availability of revised R2T4 paper worksheets, which are included as an attachment to this announcement. As in the past, there is one set of worksheets for students who withdraw from Credit-Hour Programs and another set of worksheets for students who withdraw from Clock-Hour Programs. We are also including a revised format for referring student overpayments due to withdrawal to the Department (Borrower Services). These HERA modified worksheets should only be used for students who withdraw from a period on or after July 1, 2006.

The R2T4 worksheets have been revised to accommodate the following HERA changes:

  • Inclusion of the two new grant programs - Academic Competitiveness Grant (ACG), and the National SMART Grant
  • Deletion of the LEAP, SLEAP, and GEAR UP programs
  • The new clock-hour program calculation for scheduled hours in Step 2
  • The new 50% of total grants reduction from the student's repayment responsibility in Step 9
  • The new order for the amounts of Title IV Funds to be Returned in Steps 6 and 10
  • The new $50 de minimis repayment amounts for grants that student's have the responsibility to repay in Step 10
  • The new postwithdrawal disbursement confirmation requirement on Page 3

As indicated in the May 19 announcement, a HERA conforming version of the R2T4 web product will be available in early August.

The Department has not yet issued regulations to implement the provisions of the Higher Education Reconciliation Act of 2005. Program participants, including institutions, lenders, and guarantee agencies, should implement the provisions of the Act in accordance with subregulatory guidance provided by the Department in Dear Colleague Letters and other materials until the regulations are published and effective. In general, the regulations will be effective 30 days after they are published in the Federal Register.

If you have questions on the information included in this letter or in the attachment, please contact our Federal Student Aid Research and Customer Care Center. Center staff is available Monday through Friday between 9:00 am and 5:00 pm (Eastern Time) at 1-800-433-7327. After hours calls are accepted by an automated voice response system. Callers leaving their name and phone number will receive a return call the next business day. You may also send an inquiry by FAX to the Research and Customer Care Center at 202-275-5532, or by e-mail to fsa.customer.support@ed.gov.


Treatment of Title IV Funds When a Student Withdraws from a Clock-Hour Program in PDF Format, 112KB, 3 pages

Treatment of Title IV Funds When a Student Withdraws from a Credit-Hour Program in PDF Format, 100KB, 3 pages