Withdrawal & Return of Title IV Funds (R2T4)
When a student who has received federal Title IV aid (for example, Pell Grant, Direct Loan, TEACH Grant, etc) withdraws or otherwise stops attending before completing a payment period or period of enrollment, the University must determine how much of the aid was earned and how much must be returned. This process is commonly referred to as Return of Title IV Funds (R2T4).
How the Calculation Works
- The University determines the “date of withdrawal” or the last date of attendance/participation for the period.
- The percentage of the period completed is calculated (number of days attended ÷ total days in period). If that percentage is > 60%, the student is considered to have earned 100% of Title IV aid for that period.
- The amount of Title IV aid disbursed (or that could have been disbursed) is multiplied by the percentage of time completed to determine the amount earned.
- Unearned aid is returned by the institution and/or the student according to federal order of return (grant funds first, then loans).
- The University also updates aid records and notifies the student of any amounts owed; failure to return required funds may impact future eligibility and may create an overpayment.
Student Responsibilities & Impacts
- Notify: If you withdraw or stop attending, inform the Registrar and Office of Student Financial Services immediately because your withdrawal date directly affects R2T4 calculations.
- Review institutional refund policy: Institutional refunds may differ from federal R2T4 obligations. You may owe funds to the University and/or federal programs.
- Understand enrollment status: Dropping below half-time or stopping attendance may trigger R2T4, SAP issues, or changes to your award.
- Monitor your aid eligibility: Unreturned funds may create a hold on future disbursements or require repayment; they may also affect your subsidy status or eligibility for future aid.
Understanding how withdrawals affect your financial aid helps you make informed decisions about your enrollment and funding. Before making changes to your class schedule or leaving the University, contact the Office of Student Financial Services to discuss how your decision may impact your aid eligibility and account balance. Our team is here to guide you through the process, help you avoid unexpected costs, and keep you on track toward your educational goals.