Refunds and Return to Title IV (R2T4)
Tuition and Fees Refund Policy:The following refund policy applies to students who withdraw, cancel their Enrollment Agreement, have their enrollment terminated by the school, or otherwise discontinue attendance at Philadelphia Technician Training Institute. Refunds are calculated based upon the “term”, which is generally equivalent to one-half of the program (450 scheduled clock hours over a period of approximately thirteen weeks):
- If an applicant is rejected by the school before actually attending class he/she will receive 100% refund of all monies paid.
- If an applicant withdraws within 5 calendar days of signing the enrollment agreement, he/she is entitled to a full refund of all monies paid.
- If an applicant withdraws after 5 calendar days of signing the enrollment agreement but prior to the program start, he/she is entitled to a refund of all monies paid less the Registration Fee.
- For a student withdrawing from or discontinuing the program during the first 7 calendar days of the term the student shall be refunded at least 75% of the tuition for the term.
- For a student withdrawing from or discontinuing the program after the first 7 days, but within the first 25% of the term, the tuition charges refunded by the school shall be 55% of the tuition for the term.
- For a student withdrawing from or discontinuing after 25% but within 50% of the term, the tuition charges refunded by the school shall be at least 30% of the tuition.
- For a student withdrawing from or discontinuing the program after 50% of the term, the student is entitled to no refund.
The termination date for refund computation purposes is the “Withdrawal Date”, which is the last day of attendance (LDA) as documented in the school’s official attendance record.
If a student’s enrollment is terminated by the school for any reason, he/she will still be entitled to the appropriate refund according to the policy.
Refund Processing:All refunds will be issued within thirty days after the school has determined that the student has withdrawn. Refunds to students who officially withdraw or are terminated once classes have begun will be made within 30 days from the last date of attendance (LDA).
Program Cancellation:If the school cancels or discontinues a program for any reason, the school shall refund all monies paid for tuition and fees (to all students currently enrolled in the affected program). Such refund will be made no more than 30 days from the notice of cancellation.
Failure to Return from LOA:Refunds to students who are terminated because of failure to return as scheduled from a Leave of Absence will be calculated from the last day of attendance (LDA) and paid (refunded) within 30 days of the last scheduled day of Leave of Absence.
Books and Supplies: Books and supplies are included in the tuition charges. Students are encouraged to return any unused books and supplies in new, reusable condition.
Return to Title IV (R2T4)
When a student withdraws or his/her enrollment is otherwise terminated, the school will not only calculate the amount of tuition/fees that will be refunded to the student (if any), but also the amount of federal student financial aid (“Title IV”) that must be returned to the Federal Student Aid Programs (if any). This process is referred to as “Return to Title IV” (R2T4). The calculation of R2T4 has no relationship to the tuition and fees that the student may owe to the school. The R2T4 calculation is performed using forms and/or software provided by the U.S. Department of Education for that purpose, and all transactions shall be completed within forty-five days after the school becomes aware of the student’s withdrawal/termination (Date of Determination).
R2T4 Calculation Information:Title IV funds are earned in a prorated manner based upon calendar days. R2T4 is required up to the 60% point in the payment period based upon the pro-rata methodology. (A “payment period” is generally one-half of the student’s period of enrollment at PTT – consult with the Financial Aid Office for more information). After the 60% point in the payment period, a student is considered to have earned 100% of the federal student financial aid funds they were eligible to receive.
The percentage of the payment period completed is the total number of scheduled clock hours (in the payment period for which financial aid has been awarded) that have already occurred as of the Withdrawal Date, divided by the total number of scheduled clock hours in that payment period (usually 450 clock hours).
If, based on the calculation, the student has earned less than the amount of Title IV funds disbursed, the unearned funds must be returned. The school must return the lesser of:
- the amount of federal student financial aid funds that the student has not earned, or
- the amount of institutional charges that the student incurred for the payment period multiplied by the percentage of federal student financial aid funds that were not earned.
The student (or parent, in the case of a PLUS loan) must return or repay, as appropriate:
- any Federal Direct Student Loan Program or Federal PLUS funds in accordance with the contracted terms of the loan, and
- the remaining unearned federal grant funds (not to exceed 50% of the grant owed) as an “overpayment” of the grant (see below).
Refunds are calculated according to applicable federal laws. All returned funds for which the school is responsible will be issued promptly after the school has determined that the student has withdrawn and the applicable return calculations have been completed.
Overpayments:Any amount of unearned federal grant funds that a student must return directly is called an “overpayment”. The maximum amount of a grant overpayment is one half of the grant funds received or scheduled to be received. While this occurs very rarely, students in this circumstance must make arrangements with the school and/or the U.S. Department of Education to return the unearned grant funds. Failure to do so will result in loss of future eligibility for Federal Student Aid and potential other legal actions by the U.S. Department of Education.
Financial Aid Programs R2T4 Refund Sequence: Unearned funds returned by the school must be credited to outstanding balances on Title IV loans made to the student or on behalf of the student for the payment period for which a return of funds is required. Those funds will be credited to outstanding balances in the following order:
- Unsubsidized Federal Direct Stafford Loan,
- Subsidized Federal Direct Stafford Loan, and
- Federal Direct PLUS Loan received on behalf of the student.
If unearned funds remain to be returned after repayment of all outstanding loan amounts for the payment period, the remaining excess must be credited to any amount awarded for the payment period in the following order:
- Federal Pell Grant,
- Federal SEOG, and
- Other grants or loan assistance authorized by Title IV of the Higher Education Act.
Post-Withdrawal Disbursement:The school will disburse Federal Pell Grant funds that had not yet been disbursed at the time of the student’s withdrawal/termination, but for which the student remains eligible under the R2T4 calculation. In the case of student or parent loan funds, the school will calculate the student (or parent’s) eligibility for a “post-withdrawal disbursement”. The Financial Aid Office will advise the student and/or parent borrower of the amount(s) available and the fourteen calendar day deadline to accept or decline the post-withdrawal disbursement. If a response is not received from the student and/or parent within the permitted time frame or the student declines the funds, the school will not request the funds from Title IV programs. If the post-withdrawal disbursement is accepted, the funds will first be used to settle any outstanding financial obligation to the school.