Return of Title IV Funds
Return of Title IV Funds (R2T4)
Federal student aid (Title IV) fund awards to students occur under the assumption that students will complete the periods for the federal student aid awards. The US Department of Education (ED) requires the University to determine, when students are no longer in attendance (or withdrawn) and if the students have earned the amount of federal aid they have received. The University meets this obligation by calculating a Return of Title IV Funds (R2T4). The University considers students withdrawn if they are administratively withdrawn, officially withdraw, or receive an academic or judicial dismissal.
For Federal Student Aid purposes, the University considers students withdrawn from payment periods if the students do not complete all the scheduled days. This includes students who fail to earn grades or withdraw from all courses and do not confirm future enrollment.
The University will return students’ Title IV financial funding if the withdrawals occur before they complete 60% of the payment period. The formula is a calculation of the number of days attended divided by the number of total days in the payment period. The resulting percentage is used to determine aid earned.
If students earn less than the amount disbursed, The University must return a portion of those funds to ED. The University makes the return of funds in the following order:
- Unsubsidized Direct Stafford Loans
- Subsidized Direct Stafford Loans
- Direct PLUS Loans
- Federal Pell Grants
- Federal Supplemental Educational Opportunity Grants (FSEOG)
If students are eligible for additional disbursements of Title IV funds, also known as post-withdrawal disbursements, notifications will be sent to the students. Unless the students decline, the University will credit Pell and FSEOG grant funds from post-withdrawal disbursements to the students’ accounts to pay for tuition, fees, and room and board, or will make a disbursement directly to the students If post-withdrawal disbursements include loan funds. The students must authorize the University to release all or a portion of the loan amounts within 14 days of the University’s notification. Students may also authorize the University to apply the funds to any prior outstanding balances that are greater than $200. For the students to receive post-withdrawal disbursements, all eligibility requirements must have been met. Any excess funds remaining after a return of Title IV funds or post-withdrawal disbursement will be refunded to the students.