Title IV aid and incomplete (“I”) grade

As of July 1, 2021, new rules were issued from the U.S. Department of Education about the way the grade of incomplete (“I” grade) is treated in the Return of Title IV calculations.

Under these rules, a student who completes a module but receives all incomplete grades, or a combination of course incompletes and failing grades, is not considered to have successfully completed that module unless at least one course with an incomplete grade converts to a passing grade before the deadline in which the institution must perform an R2T4 calculation for that student.

ASU’s sessions A and B are considered modules by the Department of Education. Therefore, the following are the main scenarios to consider under the new treatment of incomplete grades.

All “I” grades. R2T4 calculation will be required. Some portion of the student’s federal aid will be returned to the Department of Education.

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Any combination of “I,” “W,” “EN” and “EU” grades. R2T4 calculation will be required. Some portion of the student’s federal aid will be returned to the Department of Education.

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At least one passing grade (“A” through “D,” “P” or “Z”*) or an earned failing grade (“E”) in session B or C, with an incomplete grade in any session. R2T4 calculation will not be required. No aid will be returned to the Department of Education.

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Passing grade in session A but a combination of “I,” “W,” “EN” and “EU” grades in session B or C. R2T4 calculation will be required. Some portion of the student’s federal aid will be returned to the Department of Education.

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Note: Emphasis is on passing or earned failing grades in the latest session to determine if a R2T4 calculation is needed.

Completes at least half-time credit requirements in session A with all incomplete grades in session B or C. Meets the half-time exemption requirement and will not require a R2T4 calculation. No aid will be returned to the Department of Education.

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Completes less than half-time credit requirements in session A with all incomplete grades in session B or C. R2T4 calculation will be required. Some portion of the student’s federal aid will be returned to the Department of Education.

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Timeline for potential reinstatement of financial aid

If the incomplete (“I”) grade can be updated to a letter grade (“A” through “E,” “P” or “Z”*) within the 45-day Return of Title IV deadline, reinstatement of the student’s aid is possible. If the student does not complete any coursework (with a new grade posted) before the R2T4 calculation is completed, but subsequently completes the coursework after the 45-day deadline, the student is considered to have withdrawn from the semester and the R2T4 stands with no possibility for reinstatement of federal student aid for the semester.

*Exception — “Z” grade for MAT 117 is not passing.