When a student receives financial aid funds to attend school, it is assumed that the student will complete the enrollment period for which they have received funding. If a student officially withdraws or unofficially withdraws (stops attending without formally notifying the school) after beginning courses, they are subject to the US Department of Education’s Return to Title IV (R2T4) policy and the school's institutional aid return policy. Other return policies for external sources of funding may also apply.
The U.S. Department of Education R2T4 policy requires a calculation to determine the amount of funding the student received compared to what the student actually earned based on the portion of the enrollment period the student completed. This calculation may result in a financial obligation for the student. Such financial obligations may include immediate repayment of student loan funds to their lender/bank, a balance owed to Prescott College, and/or a debt owed to the U.S. Department of Education. Upon withdrawal, the financial aid office will complete the necessary calculations and notify the student in writing of any obligations within 45 days of the school's date of determination that the student withdrew. The R2T4 policy is mandated by federal regulation and cannot be appealed.
For institutional aid, Prescott College will prorate the amount of aid earned to the amount of tuition charged per the school's Refund Policy. For instance, if a student who drops a semester session course after the drop/add deadline for the first block is permitted a refund of 90% for this course, this means the student will still be charged for 10% of the tuition for those courses. In this case, the student will be allowed to keep 10% of their institutional aid for that course. The remaining 90% must be returned.
When it is determined that a student has failed to start a course or courses, and/or a student chooses to drop or is otherwise dropped from a course or courses for administrative reasons, Prescott College will redetermine the student’s enrollment level for financial aid purposes. For federal grant funds, this enrollment level re-determination is completed prior to any R2T4 calculation described above. As a result, students may lose full or partial financial aid eligibility which may result in a financial obligation for the student. Such financial obligations may include immediate repayment of student loan funds to their lender/bank, a balance owed to Prescott College, and/or a debt owed to the US Department of Education.