Clock Hour Programs · 2018. 10. 26. · FASFAA Clock Hour Workshop October 30-November 1, 2018 3...
Transcript of Clock Hour Programs · 2018. 10. 26. · FASFAA Clock Hour Workshop October 30-November 1, 2018 3...
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FASFAA Clock Hour Workshop October 30-November 1, 2018
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R2T4 Clock Hours
For discussion purposes only
Return of Title IV Funds
Clock Hour Programs
David Bartnicki | October 30-November 1, 2018
FASFAA Clock Hour Workshop
Topics
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• Concepts and Definitions
• Attendance
• R2T4 Calculation
• Post-Calculation Actions
• R2T4 on the Web
• Resources/References
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FASFAA Clock Hour Workshop October 30-November 1, 2018
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R2T4 Clock Hours
For discussion purposes only
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Basic Principles
• Title IV funds are awarded under the
assumption that the student will attend school
for entire period for which assistance is awarded
• When a student withdraws, student may not be
eligible for the full amount of Title IV funds the
student was scheduled to receive
• In clock hour programs, student is a withdrawal
if she/he does not complete all scheduled clock
hours/weeks of instructional time
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FASFAA Clock Hour Workshop October 30-November 1, 2018
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R2T4 Clock Hours
For discussion purposes only
Basic Principles
• Student earns Title IV aid through attendance
• Percentage of aid earned is equal to the percentage of
the payment period or period of enrollment completed
• If attend one day, R2T4 applies
• If a school has disbursed more aid than the student
has earned, money is returned to the programs
• If a school has disbursed less aid than the student has
earned, a post-withdrawal disbursement will be
calculated and may, depending on the circumstances,
be disbursed
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Basic Principles
• When the student completes more than 60% of
the payment period or period of enrollment, the
student has earned 100% of the scheduled Title
IV funds
• Institutional or other refund policies (state,
accreditor) do not impact the amount of Title IV
aid earned under an R2T4 calculation
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R2T4 Clock Hours
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Applicability
• R2T4 requirements apply to any
recipient who withdraws during a
payment period or period of
enrollment in which the student
began attendance
• See 34 C.F.R. 668.22
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Eligible Title IV Recipient
• If student never commences attendance for the
period, the student is not an eligible Title IV
recipient
• R2T4 does not apply
• Provisions of 668.21 apply
• All Pell, FSEOG, Perkins, TEACH funds must be
returned
• DL funds credited to student’s account must be returned
• Notify servicer of DL funds disbursed directly to student
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R2T4 Clock Hours
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Consumer Information
• Any refund policy with which school must
comply
• School’s tuition refund policy
• Requirements for treatment of Title IV
funds after withdrawal
• Procedures for official withdrawal
• Office(s) accepting official withdrawal notices
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Payment Period/Period of Enrollment
• Clock hour programs may choose
either payment period or period of
enrollment
• May choose on a program-by-program
basis
• Must treat all students within program
consistently
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R2T4 Clock Hours
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Payment Period or Period of Enrollment
• Payment Period
• Period of Enrollment
450 Clock Hours
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450 Clock Hours 450 Clock Hours
Academic Year
How the R2T4 Calculation Works
• Step One: The institution determines the precise
amounts of Title IV aid for which a student was eligible
at the time of the withdrawal, including amounts
disbursed and amounts that could have been
disbursed
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R2T4 Clock Hours
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Aid That Could Have Been Disbursed
• To include aid, must meet late disbursement
requirements in 668.164(g)(2)
• Student meets requirements if before
withdrawal:
• ED processed ISIR/SAR with official EFC
• Perkins/FSEOG – school made award
• DL – school originated loan
• TEACH – school originated grant
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Aid That Could Have Been Disbursed
• Aid listed in the “could have been disbursed”
section cannot actually be disbursed if
• First-time, first-year borrower withdraws before
the 30th day (default rate waivers apply)
• 2nd and subsequent DL disbursements unless
the student graduated or completed the loan
period
• Valid ISIR requirements not met
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R2T4 Clock Hours
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How the R2T4 Works – Clock Hour • Step Two: The institution calculates the percentage of
the period that the student was scheduled to complete
upon withdrawal
• If greater than 60%, the student earned 100% for the period
• Numerator: Number of hours the student was
scheduled to complete
• Denominator: Total hours
in the period
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Percentage of Title IV Aid Earned (Clock Hour Programs)
• Numerator is clock hours scheduled to be
completed as of student’s LDA
• Denominator is clock hours scheduled to be
completed in payment period/period of enrollment
Student must actually start a payment period to be
considered in that payment period
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FASFAA Clock Hour Workshop October 30-November 1, 2018
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R2T4 Clock Hours
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Percentage of Title IV Aid Earned
• Student withdraws when scheduled to have
completed 500 hours, but only actually
completed 400 hours
• student still considered in first payment period
• regulations require the use of 500 hours in the
R2T4 calculation for the 1st payment period
• calculation is 500/450--rounded down to 100%
• a student may never earn more than 100% of his or
her aid
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Required to Take Attendance
• Under our rules, schools that are required
to measure the clock hours that a student
completes in a program are considered to
be institutions that are required to take
attendance for R2T4 purposes
• See preamble page 66898 of October 29, 2010
Federal Register
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FASFAA Clock Hour Workshop October 30-November 1, 2018
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R2T4 Clock Hours
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Withdrawal Date (Required to Take Attendance)
• Last date of
attendance must be
withdrawal date
• Date of determination
of withdrawal cannot
be more than 14
calendar days after
withdrawal date
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Importance of Dates
• Withdrawal date – determines the
percentage of TIV aid earned
• Date of determination – starts the clock
ticking for doing the calculation, returning
funds, and providing timely notifications to
the student
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FASFAA Clock Hour Workshop October 30-November 1, 2018
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R2T4 Clock Hours
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Approved Leave of Absence (LOA)
• An LOA is only considered an approved LOA for Title
IV purposes if –
• School has formal written LOA policy
• Student must follow policy in requesting LOA
• Student must request LOA in writing
• School has reasonable expectation student will return
• No additional charges are imposed during or because of
the leave
• If the student is a Title IV loan recipient, school must
explain effect of failure to return from leave on loan
repayment
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Approved Leave of Absence (LOA)
• An LOA is only considered an approved LOA for
Title IV purposes if –
• Leaves of absence cannot exceed 180 days in any
12-month period
• School approved the LOA
• Upon completion of leave, student is allowed to
complete coursework started prior to leave
• Approved LOA is not considered a withdrawal
unless student fails to return from leave
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R2T4 Clock Hours
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Failure to Return From Approved LOA
• Withdrawal date is last
date of academic
attendance prior to LOA
• Grace period starts
retroactively to
withdrawal date
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How the R2T4 Calculation Works
• Steps Three and Four: The percentage completed is
multiplied by the total amount of Title IV aid for which
the student was eligible
• If the amount earned is less than the amount disbursed, a
return to the Department is required
• If the amount earned is greater than the amount disbursed, a
PWD is required
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R2T4 Clock Hours
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Rounding Rules for Percentages
• Calculate out to four decimal places
• 45 days/101 days = .4455
• 199 hours/450 hours = .4422
• Round to third decimal place
• .4455 = .446 = 44.6%
• .4422 = .442 = 44.2%
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Rounding Rules for Dollar Amounts
• Round to the nearest penny
–$2,346.00 X 44.6% = 1,046.316 - $1,046.32
–$2,346 X 44.4% = 1,041.624 or $1,041.62
• Disbursement or refund may be rounded to
nearest dollar
• $1,046.32 = $1,046
• $1,041.62 = $1,042
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R2T4 Clock Hours
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How the R2T4 Calculation Works
• Step Five: If a return is required, the institution
determines the amount of unearned Title IV funds that it is
required to return
• The amount of funds due from
the institution is calculated by
adding all the institutional
charges incurred by the
withdrawal date, then
multiplying that total by the
percentage of the period the
student did not complete
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Institutional Charges
• Institutional charges include:
• Tuition and fees
• Room and board if contracted with school
• Course materials if no real and reasonable opportunity to
purchase elsewhere
• Based on charges initially assessed to student
• Only adjusted by changes to charges prior to withdrawal
• If AFTER a student withdraws, the school changes the
amount of charges (for time present, etc.), those changes
do NOT affect the initial charges used in R2T4
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R2T4 Clock Hours
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Institutional Charges
• Assumption that TIV funds are used to pay
institutional charges ahead of ALL other aid
• Charges may NOT be reduced even if other
sources of aid pay those charges
• Example
• Charges = $2,000
• VA benefit covers all $2,000
• Charges used in R2T4 is still $2,000
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Institutional Charges
• Proration of charges
• Used if school charges for a period longer than
a payment period
•Example – charges for 540 hours but has a
450 hour payment period
• Usually the charges used in R2T4 are the pro-
rated amount of charges for the longer period
(540 hours prorated down to the cost for 450
hours) BUT
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FASFAA Clock Hour Workshop October 30-November 1, 2018
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R2T4 Clock Hours
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Institutional Charges • Proration of charges
• However, if school retained TIV funds in excess of prorated
charges then charges for the period are the amount retained
• Example
– Charges - $5,000 for program (900 hours)
– R2T4 uses payment period (450 hours)
– Prorated charge for payment period is $2,500
– School retained $3,000 for payment period
– Charges to be used in R2T4 is $3,000
Please note - Only when the student has provided authorization for the
institution to retain a credit balance would institutional charges for a retained
amount exceed the prorated amount
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Institutional Charges
• Returning equipment
• School may exclude documented costs for
nonreturnable equipment and returnable equipment if
not returned in good condition within 20 days of
withdrawal if –
• School can substantiate that its return policies are
reasonable, consistent, and fair to all students, and students
are notified in writing of those policies when they enroll
• The school can exclude the total amount the school paid for
the materials NOT what the school charged the student
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FASFAA Clock Hour Workshop October 30-November 1, 2018
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R2T4 Clock Hours
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How the R2T4 Calculation Works
• Step Six: Once the
institution determines the
total amount of unearned
Title IV aid that must be
returned to the
Department, the
institution must return
funds in the statutory
order (i.e. loans, then
grants)
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Timeframe to Return Funds
• Calculation must be completed within 30 calendar days of the date of determination of
withdrawal
• Return funds to Direct Loan program as
soon as possible, but no later than 45
calendar days after the date of
determination of withdrawal
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R2T4 Clock Hours
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Step 8: Repayment of
Student’s Loans
• Student is responsible to
repay any loan funds not
returned by the school
• Loans are repaid in
accordance with terms of
the promissory note
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Steps 9 &10: Return of Funds
by Student
• Any grant repayment due from student is considered an overpayment
• Student is responsible for repayment
• Amounts of $50 or less in any program are set aside
• Grant 50% protection
• Law specifies order of Title IV programs to which funds must be returned
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FASFAA Clock Hour Workshop October 30-November 1, 2018
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R2T4 Clock Hours
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Example—50% Grant Protection • Initial amount of
grants to be returned: $1,440
• Total Title IV grants aid x 50% = $1,300
• Subtract 50% grant protection from $1,440 to determine the amount student is responsible to repay.
Grant Overpayment
• School must notify student of
overpayment within 30 days
of date of determination of
withdrawal
• Student retains Title IV
eligibility for 45 days following
notification by school
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FASFAA Clock Hour Workshop October 30-November 1, 2018
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R2T4 Clock Hours
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Grant Overpayment
• During 45 day period, student must:
• Repay in full to school; or
• Make satisfactory arrangements to repay with
school (school option); or
• Make satisfactory arrangements to repay with ED
• School must report and refer overpayment to
ED (NSLDS) if not paid in full or no repayment
arrangements made within 45 days
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Post-Withdrawal Disbursements (PWD)
• Box J in Step 4 of worksheet
• Must meet late disbursement
requirements
• Must be made from available
grant funds before available
loan funds
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FASFAA Clock Hour Workshop October 30-November 1, 2018
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R2T4 Clock Hours
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PWD – Notification Requirements
• Within 30 days of date of determination, school
must notify student/parent of any loan PWD:
• Explain student/parent may decline all or a portion of
the disbursement
• Request confirmation of any amount to be credited to
the student’s account, or disbursed directly to
borrower
• Explain obligation to repay loan funds
• Specify deadline of at least 14 days for response
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PWD - Loans
• Must receive confirmation prior to disbursement
• If timely response, disbursement must be made
within 180 days of date of determination
• If response is late, school may or may not
disburse
• If school chooses not to disburse, must notify
borrower in writing of outcome
• If no response from borrower, no disbursement
can be made
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R2T4 Clock Hours
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PWD – Grant Funds
• No student confirmation required to pay
current outstanding charges
• If disbursed directly to student, must be
disbursed within 45 days of date of
determination
• Must be disbursed to student account within
180 days after date of determination
• Must obtain authorization to pay for other
allowable charges on account
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R2T4 Example
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FASFAA Clock Hour Workshop October 30-November 1, 2018
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R2T4 Clock Hours
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Example Profile
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• Max was enrolled in a 1500 hour cosmetology program
• He started the program on December 3, 2018 in the first
450 hour payment period (school performs R2T4 by
payment period)
• Max withdrew from classes on January 18, 2019
• At the time of withdrawal, he was scheduled to have
completed 196 hours within the 1st 450 hour payment
period
• Disbursements made during 1st payment period – Pell
($1872), Sub DL ($1732), and Unsub DL ($990)
• Max was charged $4,500 for costs associated with 1st
payment period
R2T4 Clock-Hour Hand Calculation
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FASFAA Clock Hour Workshop October 30-November 1, 2018
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R2T4 Clock Hours
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Clock-Hour Step 1
Clock-Hour Steps 2 & 3
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FASFAA Clock Hour Workshop October 30-November 1, 2018
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R2T4 Clock Hours
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Clock-Hour Step 4
Clock-Hour Step 5
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R2T4 Clock Hours
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Clock-Hour Step 6
Clock-Hour Steps 7 & 8
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FASFAA Clock Hour Workshop October 30-November 1, 2018
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R2T4 Clock Hours
For discussion purposes only
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Special Circumstances
• Credit Balances
• Verification
• Death of a Student
• Inadvertent overpayments
• Failing to earn a passing grade
• Terms with modules
• Prorating charges
• Student returning within 180 days or transferring into a new program in clock hour and nonterm credit hour programs
Verification and R2T4
• If verification not complete within timeframe
to meet R2T4 deadlines, school excludes
aid subject to verification from calculation
• If verification is then completed after R2T4
deadlines but before verification deadlines,
school must recalculate R2T4 including
verified amounts as aid that could have
been disbursed
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FASFAA Clock Hour Workshop October 30-November 1, 2018
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R2T4 Clock Hours
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• Hold all Title IV Credit Balances until R2T4
• Credit Balance is “Aid Disbursed”
• Determine if Credit Balance changes because of a Refund Policy or R2T4
• Use Credit Balance to repay Grant Overpayment on behalf of student
• Release Credit Balance within 14 days
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Title IV Credit Balances
Return After Withdrawal
• Clock hour programs
• If the student returns to the same
program within 180 days –
• the student is treated as if he/she
never left and returns to the same
payment period
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FASFAA Clock Hour Workshop October 30-November 1, 2018
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R2T4 Clock Hours
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Return After Withdrawal
• Clock hour programs
• If withdrawn student re-enters same program of
study after 180 days, or transfers into new
program at any time
• Student begins new payment period upon re-
entry or transfer
• Remaining portion of program treated as length
of entire program for awarding Title IV funds
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FASFAA Clock Hour Workshop October 30-November 1, 2018
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R2T4 Clock Hours
For discussion purposes only
What is R2T4 on the Web?
• Free web-based software that calculates
and manages the return of Title IV funds
• Available through FAA Access to CPS
Online
• Must be enrolled on SAIG Enrollment web
site – https://www.fsawebenroll.ed.gov/
• Once enrolled, R2T4OW can be accessed
at www.fafsa.ed.gov/FOTWWeb/faa/faa/jsp
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FASFAA Clock Hour Workshop October 30-November 1, 2018
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R2T4 Clock Hours
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Resources and References
• FSA Handbook, Volume 5
• 34 CFR 668.22
• DCL GEN-00-24, GEN-04-03, GEN-11-14
• FSA Assessments
• http://www.ifap.ed.gov/qahome/qaassessments/ret
urntivfunds.html
• Federal Register – October 29, 2010
• R2T4 Demo Site
• http://fafsademo.test.ed.gov/
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Contacts
• Atlanta School Participation Team
– Main Number: 404-974-9303
• Point-of-Contacts
– Arva Thomas (IIS) – 404-974-9412
– Cassandra Weems (IIS) 404-974-9305
• Atlanta Training Officer
– David Bartnicki – 404-974-9312
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Email: [email protected]
http://www.ifap.ed.gov/qahome/qaassessments/returntivfunds.htmlhttp://www.ifap.ed.gov/qahome/qaassessments/returntivfunds.htmlhttp://fafsademo.test.ed.gov/
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FASFAA Clock Hour Workshop October 30-November 1, 2018
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R2T4 Clock Hours
For discussion purposes only
Training Feedback
To ensure quality training we ask all participants to
please fill out an online session evaluation
• Go to http://s.zoomerang.com/s/DavidBartnicki
• Evaluation form is specific to David Bartnicki
• This feedback tool will provide a means to educate and
inform areas for improvement and support an effective
process for “listening” to our customers
• Additional feedback about training can be directed to
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QUESTIONS?
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David Bartnicki
404-974-9312
http://s.zoomerang.com/s/DavidBartnickihttp://s.zoomerang.com/s/DavidBartnickimailto:[email protected]:[email protected]