Title IV financial aid funds are awarded under the assumption that a student will attend school for the entire quarter in which the aid was awarded. When a student withdraws from all courses for any reason, including medical withdrawals, the student may no longer be eligible for the full amount of Title IV funds that the student was originally scheduled to receive.

The return of funds (R2T4) is based upon the premise that students earn their financial aid in proportion to the amount of time in which they are enrolled. A pro-rated schedule is used to determine the amount of federal student aid funds the student will have earned at the time of the withdrawal. Thus, a student who withdraws in their second week of classes has earned less of their financial aid than a student who withdraws in their fifth week. Once more than 60% of the quarter is completed, a student is considered to have earned all of their financial aid and will not be required to return any funds.

When is R2T4 Required?

If a student’s enrollment status changes for an entire quarter, (i.e. official, unofficial, and administrative withdrawals) the College must recalculate the student’s financial aid award to determine the amount the student will have earned based on the date of withdrawal.

If a student does not begin attendance in all their classes, the College must recalculate the student’s financial aid awards based on the lower enrollment status. For example, a student enrolls in a full-time course load (15 credit hours) but only attends three courses (10 credit hours); in this case the student’s financial aid awards must be recalculated on the lower enrollment status (10 credit hours).

When a Student Fails All Classes

If a student fails to earn a passing grade in every course during a quarter (i.e. transcript shows F or W grades), the student is considered to have, for purposes of federal Title IV funds, unofficially withdrawn from the College. As a result, a federal withdrawal calculation will be performed to determine if any Title IV funds need to be repaid.

When is R2T4 not Required?

If you withdraw from one or more courses during a quarter but remain enrolled in a class(es), a R2T4 is not required. Withdrawing from one or more courses may however affect your Satisfactory Academic Progress (SAP) and in turn your financial aid eligibility for future quarters.

Timeliness of R2T4

The Financial Aid Office must determine the amount of financial aid that was earned and how much was unearned. The unearned aid is returned to the U.S. Department of Education by the College on the student’s behalf. The College is required to recalculate Title IV funds within 30 days from the date of withdrawal. If funds need to be returned, the College is required to return funds within 45 days from the date of withdrawal.

Note: The amount of unearned aid will be returned to the U.S. Department of Education. Since the institutional refund policy is different than the R2T4 Policy, any return of funds may result in a balance due to the College. This is posted on your student ledger card, your student account, and must be repaid immediately.

How is the R2T4 Calculation Completed?

The Financial Aid Office must first determine the number of calendar days in the quarter, as well as the number of calendar days a student attended class. The percentage of earned Title IV financial aid is calculated based upon the number of days a student attended class, compared to the number of calendar days in the quarter.

Institutional charges are calculated and the amount that must be returned to each Title IV Program is determined. Funds are then returned to the programs according to regulatory requirements. Financial aid awards are adjusted as needed, which may result in charges due to the College.

Post-Withdrawal Disbursements

If you did not receive all the funds that you earned prior to your date of withdrawal, you may be due a Post-Withdrawal Disbursement (PWD). If your PWD includes loan funds, the College must get permission before it can disburse them by collecting a Post-Withdrawal Disbursement Authorization Form. You may choose to decline some or all the loan funds so that you do not incur any additional debt. The College may automatically use all or a portion of your PWD grant funds for tuition and fees charges (as contracted with the college).

Order of Return of TIV Funds

If Title IV funds are required to be returned, they are based on the following order of return:

1. Unsubsidized Direct Loan
2. Subsidized Direct Loan
3. Direct PLUS Loan
4. Federal Pell Grants
5. Iraq and Afghanistan Service Grants
6. FSEOG
7. Other TIV Programs

Withdrawal Date(s)

If you officially withdraw from the College, the withdrawal date (last date of attendance) used to determine your financial aid eligibility will be:

• The date that you last attended a course, as reported by your instructor(s), or
• The date that you last participated in an academically related activity.

If you unofficially withdraw by abandoning all your classes, the withdrawal date used to determine your financial aid eligibility will be:

• The date that you last attended a course, as reported by your instructor(s), or
• The date that you last participated in an academically related activity.