Title IV Program Refund

Source: Federal Student Aid Handbook 2023-2024, Department of Education

If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, the school must perform an R2T4 calculation to determine the amount of Title IV assistance (Financial Aid) earned by the student. 

The Financial Aid and Scholarships office is required by regulation to calculate a Return of Title IV Funds amount for all students who withdraw during a semester. The policy also applies to students who discontinue enrollment in all classes, on or after the first day of the term. 

 A student who is no longer enrolled and in attendance is no longer eligible for in-school status or an in-school deferment, so the school must report the student's enrollment status as withdrawn ("W") in NSLDS (National Student Loan Data System) Enrollment Reporting. See 34 CFR685.309(b) and 34 CFR 682.610(c). The policy applies to all students who discontinue enrollment in all classes, on or after the first day of the term. This includes academic dismissals along with medical and mental health withdrawals, as well to include tuition and fee appeal withdraws to never attended. Title IV funds are awarded to a student under the assumption that the student will attend school for the entire period for which the assistance is awarded. When a student withdraws, the student may no longer be eligible for the full amount of Title IV funds that the student was originally scheduled to receive. For example, if you completed 30% of your payment period or period of enrollment, you earn 30% of the assistance you were originally scheduled to receive. Once you have completed more than 60% of the payment period or period of enrollment, you earn all the assistance that you were scheduled to receive for that period.

The Title IV programs that are covered by this regulation are: Federal Pell Grants, Teacher Education Assistance for College and Higher Education (TEACH) Grants, Federal Direct Subsidized and Unsubsidized Loans, Federal Direct Parent Loan for Undergraduate Students (PLUS) Loans, Federal Direct Graduate PLUS Loans, Federal Supplemental Educational Opportunity Grants (FSEOGs), and the Iraq and Afghanistan Service Grant.

For additional information, including examples of refund calculations, contact the One Stop Enrollment Center.