Publication Date: August 07, 2006
Author: G. Kay Jacks, General Manager, Application, Operations and Delivery Services, Federal Student Aid
Summary: HERA Operational Implementation Guidance (CPS, COD System, EDExpress Suite) – Availability of Enhanced Return of Title IV Funds (R2T4) Web Application
Posted on 08-07-2006Federal Student Aid is pleased to announce the availability of the enhanced Return of Title IV Funds (R2T4) on the Web product. This updated version of R2T4 on the Web implements changes to R2T4 calculations resulting from provisions of the Higher Education Reconciliation Act of 2005 (the HERA), Pub. L. 109-171.
R2T4 on the Web is an online, non-year-specific application that calculates the earned and unearned portion of Title IV program assistance in accordance with section 484B of the Higher Education Act.
R2T4 on the Web is accessible through the FAA Main Menu of the FAA Access to CPS Online Web site (http://www.fafsa.ed.gov/FOTWWebApp/faa/faa.jsp) and from the View menu in the EDExpress for Windows software.
R2T4 on the Web Enhancements
As a result of the HERA provisions, R2T4 and Post-Withdrawal disbursement worksheets now differ for students who withdrew from school before July 1, 2006 versus students who withdraw from school on or after July 1, 2006.
Before you create a new R2T4 record, you must now provide the student’s withdrawal date, award year, and school calendar profile. Based upon that information, either the pre-HERA R2T4 on the Web calculation is performed (for students who withdrew prior to July 1, 2006) or the revised, HERA-compliant R2T4 on the Web calculation is performed (for students who withdrew on or after July 1, 2006).
The following additional changes related to the HERA have been implemented on the R2T4 on the Web site:
1) The R2T4 and Post-Withdrawal tabs for students with a withdrawal date on or after July 1, 2006 display new entry fields for tracking award data for the Academic Competitiveness Grant (ACG), National Science and Mathematics Access to Retain Talent Grant (National SMART Grant), and Graduate and Professional Student PLUS Loan (Grad PLUS) award data. We also updated R2T4 reports and the Data Export feature to include ACG, National SMART Grant, and Grad PLUS data when it is present on the student’s record.
2) The R2T4 tab for clock-hour students with a withdrawal date on or after July 1, 2006 automatically calculates the percentage of Title IV aid earned based on scheduled hours, rather than allowing a choice between scheduled or completed hours.
3) The R2T4 tab automatically calculates the Title IV grant protection amount in Step 9, Box T to 50% of the total amount of Title IV grants that were disbursed or could have been disbursed to the student. The R2T4 tab displays Step 9 calculations when the View Printable Page option or the R2T4 Tab is selected for a student who has a withdrawal date of July 1, 2006 or later.
4) The R2T4 tab for students with a withdrawal date on or after July 1, 2006 automatically calculates the de minimis student repayment obligation amount for each Title IV grant. Students with a withdrawal date on or after July 1, 2006 are not responsible for returning funds to any Title IV grant programs to which the student owes $50 or less. Note: If the amount of Title IV owed by the student is $50 or less for any of grant programs, it will be shown in the View mode on the R2T4 tab as well as on the R2T4 report. Remember, a school should NOT report a student owing $50.00 or less to any Title IV grant program to the National Student Loan Data System (NSLDS), refer him or her for collection to Federal Student Aid – Borrower Services, or attempt to collect on Title IV grant overpayments of $50.00 or less.
5) The HERA provides that schools must now contact borrowers and receive an affirmative response prior to making a post-withdrawal disbursement of loan funds. New data edits covering this HERA provision have been added to the Post-Withdrawal tab for students with a withdrawal date on or after July 1, 2006.
6) The HERA increases the deadline that schools have to return funds to the Department of Education (or to FFEL lenders for FFEL funds) from 30 to 45 days from the date of the school’s determination that the student withdrew. The “Days Remaining” calculations on R2T4 on the Web’s status tracking pages for “School Portion of Title IV Funds To Be Returned” and “School Portion of Title IV Funds Returned” are now calculated using the 45-day rule for student records with a withdrawal date on or after July 1, 2006. The 30-day calculation rule will continue to be followed for student records with a withdrawal date prior to July 1, 2006.
In order to familiarize yourself with the HERA changes to R2T4 calculations, Federal Student Aid recommends that you refer to the paper pre- and post-July 1, 2006 R2T4 worksheets before performing calculations online using the redesigned forms. The redesigned worksheets for students who withdraw on or after July 1, 2006 display different field labels, worksheet steps, and worksheet item numbering than the worksheets for students with a withdrawal date before July 1, 2006.
The redesigned paper R2T4 worksheets are provided as Adobe Acrobat (PDF) attachments to the June 30, 2006 electronic announcement, posted to the Information for Financial Aid Professionals (IFAP) Web site, located at http://ifap.ed.gov.
For additional information and guidance regarding enhanced R2T4 on the Web functionality related to the HERA, access the R2T4 on the Web site, click the “FAQ” button at the top of the home page, and select the FAQ titled “What updates have been made to R2T4 on the Web to ensure compliance with the Higher Education Reconciliation Act (the HERA) of 2005, Pub. L. 109-171?”
Enrollment Requirements for R2T4 on the Web
Financial aid administrators need to be enrolled for both FAA Access to CPS Online and Return of Title IV Funds specifically to access the R2T4 on the Web site.
The destination point administrator (DPA) or secondary destination point administrator (SDPA) of the TG number currently used by the school to send and receive Free Application for Federal Student Aid (FAFSA) and Institutional Student Information Record (ISIR) corrections has access to the FAA Access to CPS Online Web by default and can add or modify rights.
The DPA or SDPA can easily sign up additional staff members for FAA Access to CPS Online and R2T4 on the Web on the SAIG Enrollment Web site, located at http://www.fsawebenroll.ed.gov. Signature pages are not required for FAA Access to CPS Online or R2T4 on the Web enrollment.
R2T4 PC Product Archival
On June 2, 2006, we relocated the PC version of R2T4 to an archival section of the Federal Student Aid Download (FSAdownload) Web site (>http://fsadownload.ed.gov). As communicated in our May 19, 2006 electronic announcement> on the IFAP Web site, the PC software version of R2T4 will not be updated to include provisions of the HERA. Therefore, we would like to remind you that the R2T4 PC product cannot be used for students with a withdrawal date on or after July 1, 2006.
If You Have Questions
If you have any questions regarding R2T4 on the Web, the R2T4 PC software, or enrollment for the FAA Access to CPS Online or R2T4 Web sites, contact CPS/SAIG Technical Support at 800/330-5947 (TDD/TTY 800/511-5806) or by e-mail at CPSSAIG@ed.gov.
For other questions about the HERA, contact the Federal Research and Customer Care Center (RCCC) at 800/433-7327, 202/275-5532 (fax), or by e-mail at firstname.lastname@example.org.