Financial Aid - Federal School Code: 006972

Return of Title IV Funds

Overview of the Return to Title IV Policy (R2T4)
Date of Withdrawal
Unofficial Withdrawal
Calculation of Earned and Unearned Title IV Aid
Return Policy due to reported NO SHOW courses
Return of Title IV Funds Process in Detail
Fast Track Courses and Return of Title IV Funds

Withdrawal, Refund, Repayment

Federal financial aid is governed by Chapter IV of the Higher Education Act of 1965 and administered by the U.S. Department of Education. This federal law, also known as Title IV, holds Butte College accountable for the funds it disburses. According to regulations, the college must have a written policy regarding Title IV recipients who withdraw or otherwise fail to complete the term for which their financial aid was disbursed. This policy addresses the establishment of a withdrawal date, post-withdrawal disbursements, and the calculation of the amount of funds to be returned to the federal government by Butte College and by you, the student.

The following provides a full explanation of the terms and policies regarding withdrawal, refunds, and repayment. This policy is subject to change at any time. Such changes may be driven by changes in the regulations and guidance provided by the United States Department of Education.

Overview of the Return to Title IV Policy (R2T4)

The Return of Title IV Funds Policy was established by the Higher Education Act, as reauthorized and signed into law on October 7, 1998. The Butte College 2014-2015 Return of Title IV Funds (R2T4) policy reflects the most recent regulations published 10-29-2010 that became effective 7-1-2011. This R2T4 policy applies to any student who receives federal financial aid, has enrolled in classes, and subsequently either drops courses and/or is reported as an "unofficial withdrawal" (FW, No Show) during or after the semester ends. At Butte College, the R2T4 policy applies to all periods of enrollment: fall semester, spring semester, and summer session.

When a student withdraws from his/her courses, for any reason including medical withdrawals, he/she may no longer be eligible for the full amount of Title IV funds they were originally scheduled to receive. Butte College follows the federally prescribed policies and procedures for calculating whether the student has earned all or a portion of their federal financial aid.

For students in fast track courses within the 17-week payment period, such as late-starting, fast track courses, weekend courses and/or any other variable length course that is not scheduled to run the entire 17 weeks, regulations require individual review of each course. Under the most recent federal guidance, this means that, even if a student successfully completes one course and subsequently withdraws from a later course within the same payment period, eligibility must still be reviewed.

Butte College is required to return all unearned federal aid attributed to Non-Resident (out-of-state) fee charges. This means that a portion of Non-Resident student fees is no longer covered by financial aid, and the student is liable for paying the balance of school charges. This amount will be subject to immediate repayment and no further registration activity will be allowed. Official transcripts will not be released until the balance is paid in full. Butte College's fee refund policy will not affect the amount of Title IV aid the student has earned as described in this document. The college fee refund policy is published in the Butte College catalog.

Date of Withdrawal

For an official withdrawal, the effective withdrawal date is the first date of notification by the student to the Office of Admissions and Records, SAS-179. Students should follow the official withdrawal policy as published in the Butte College Catalog.

Unofficial Withdrawal

A student who ceases to attend without officially withdrawing is considered an "unofficial withdrawal." When a student does not follow the official withdrawal procedure and has ceased attending, an effective withdrawal date will be assigned by instructors at the end of the semester with an 'FW' and the last date of attendance.

Butte College may use a last date of attendance at an academically-related activity for the effective withdrawal date, if the last date a student attended class or submitted coursework is verified by an employee at Butte College who has sufficient knowledge of a student's academic participation. In the case of unofficial withdrawals, Butte College does not accept a student's self-reported last date of attendance.

Calculation of Earned and Unearned Title IV Aid

Both Title IV aid recipients, who complete the official withdrawal process or have decided to unofficially withdraw from Butte College, are subject to a prorated calculation of "earned" federal aid based on the withdrawal date and the mandatory return of Title IV funds to the appropriate accounts. Responsibility for repayment of these funds will be shared by Butte College and the student according to the federal formula for prorated refunds of "unearned" Title IV aid.

The portion of "unearned" Title IV funds that the student and Butte College must repay is calculated by the Financial Aid Office. The percentage of "earned" Title IV funds, excluding federal Work-Study, is based on the number of calendar days completed before withdrawing, divided by the number of calendar days in the semester. Official breaks in enrollment of five consecutive calendar days or more are excluded from the number of calendar days in the semester. No repayment of Title IV funds will be required for withdrawals occurring after the 60 percent point of the semester. After this point, Title IV aid is considered 100 percent "earned."

Regulations require schools to perform calculations within 30 days from the date the school determines a student's withdrawal and to process the actual return of funds within 45 days of the date the school sends the student notice of the overpayment (funds not earned). The institution is required to notify the student if they owe a repayment via written notice. It is imperative that students update their mailing address in MyBC whenever they move.

Return Policy due to reported NO SHOW courses

If you receive a grant based on 6 or more units and you are reported as NO SHOW (never attended), and this brings your total attended units below 6, you will owe back a portion of the aid you received to the Department of Education.

  Return of Title IV Funds Process in Detail

The Financial Aid Office follows the instructions outlined in the federal worksheet when calculating Title IV earnings according to the following steps. See our PDF entitled Return of Title IV Funds Policy for examples of Return of Funds calculations and full details of the step-by-step process. 



Student's Title IV Aid Information (amount of aid disbursed)


Percentage of Title IV Aid Earned (Days Attended Divided by Days in Payment Period)


Sample Calculations for "Earned Aid" (Total Aid Disbursed x Percentage Completed)


Amount of Title IV Aid to be Returned or Disbursed (Total Disbursed Aid - Earned Aid = Unearned Aid to be Returned)


Amount of Unearned Title IV Aid to be Returned by the School. Note: All payments made by Butte College will be charged to your student account for collection from you.


Order of Returned Funds by the School (follows order proscribed by the Department of Education). Does not include Federal Work-Study. Grace period for loan repayments begins on day of withdrawal.

R2T4 STEPS 7,8,9,10

 Unearned Title IV Funds Due Directly from the Student

Fast Track Courses and Return of Title IV Funds

Fast track courses for which a student has been funded by financial aid are also subject to Return to Title IV policy. Refer to our PDF entitled Return of Title IV Funds Policy for information on how a student attending fast track courses can determine if R2T4 withdrawal procedures apply to them.

Intent to Attend: Confirmation of Attendance in a late-starting, fast track course during the Payment Period

When it is determined that a student has withdrawn from a fast track course, students must confirm attendance in a future course within the same payment period, even if the student is already registered for future courses. If the student is registered for course offerings within the same payment period that have not yet started, Butte College will send an e-mail and link to an Intent to Attend form. Submission of this form to the Financial Aid Office, in a timely fashion, allows us to suspend the Return of Title IV Funds Calculation. As long as the student successfully completes the future course(s) within the current payment period, no other action is necessary. Note: This form must be returned within 7 days in order to avoid automatic processing of the student's financial aid for Return of Title IV funds.

Overawards - Problems Resulting in Overpayments

Updated Verification Information - If the student was found to be ineligible for grant monies due to new verification information, he/she would have a grant overpayment for any monies received unless the discrepancy is resolved, if possible.

Discrepancies in Student Financial Aid File – If the student was paid grant monies and was then found to be ineligible based upon original/updated file documents, (e.g. had a B.A. degree and received Pell), then this student would have a grant overpayment and would be subject to collection procedures.

Student Fails to Update Financial Information – If the student fails to update relevant financial information in his/her FAFSA, he/she could have a grant overpayment, which would either be repaid through adjustments made in the same award year, or through collection activity.

Fraud or Forgery – Examples: If a student has misrepresented vital information on the FAFSA or has forged instructors' signatures on Course Evaluations in order to make themselves eligible for a grant or loan funds disbursement, the student will owe a repayment on all funds obtained illegally and may be subject to prosecution.