On January 11, Federal Student Aid (FSA) released volume 5, “Withdrawals and the Return of Title IV Funds,” of the 2021-2022 FSA Aid Handbook. Pages 5-2 through 5-4 contain important guidance changes related to the Return of Title IV Funds (R2T4) and when a student is considered withdrawn (“W”). The new guidance is effective July 1, 2021.
Please review FSA Handbook Volume 5 to determine if your school should consider any procedural or policy changes when a student has withdrawn regarding the appropriate effective date to report the student’s “W” status in your Enrollment Reporting submission to the Clearinghouse.
Exemptions you should consider include:
- Withdrawal exemption for graduates or completers (page 5-8)
- Withdrawals from a clock-hour program prior to successful completion of all hours in the program (page 5-8)
- Withdrawal exemptions for programs offered in modules (page 5-9)
- Withdrawal exemptions for successful completion of 49% or more of a period (page 5-10)
- Withdrawal exemptions for successful completion of half-time coursework (page 5-13)
- Title IV disbursements and R2T4 withdrawal exemptions (page 5-14)
The Clearinghouse recommends that you adhere to federal guidance when reporting your school’s enrollment to us to ensure you meet Title IV compliance reporting requirements. This will also help you mitigate compliance reporting inconsistencies and audit findings.
For compliance or audit questions, please contact us at email@example.com.