Admissions & Aid

Office of Financial Aid

Financial Aid

Return of Title IV Funds (R2T4)

R2T4 Policy

Understanding How Withdrawal Affects Your Financial Aid

Federal financial aid is awarded with the expectation that students will attend and complete the academic term for which their aid was awarded.

If a student withdraws from all courses before completing the term, federal regulations require the College to determine how much financial aid the student has earned based on the amount of time they attended.

This process is called the Return of Title IV Funds (R2T4).

Depending on when a student withdraws, some federal financial aid may need to be returned to the U.S. Department of Education. This may result in a balance owed to the College.

What Financial Aid Is Subject to R2T4?

The Return of Title IV Funds calculation generally applies to the following federal financial aid programs:

- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- Federal Direct Subsidized Loans
- Federal Direct Unsubsidized Loans
- Federal Direct PLUS Loans
- Federal Work-Study earnings are not included in the R2T4 calculation.

How Is Earned Financial Aid Calculated?

Students earn federal financial aid based on the percentage of the academic term they complete.

Before completing more than 60% of the term: Students earn federal financial aid proportionally based on the percentage of the term completed.

After completing more than 60% of the term: Students are considered to have earned 100% of their eligible federal financial aid for that term.

If a student receives more financial aid than they have earned, the unearned portion must be returned in accordance with federal regulations.

Example: How R2T4 Works

A student receives $5,000 in federal financial aid and withdraws after completing 30% of the term.

Federal aid received $5,000
Percentage of term completed. 30%
Financial aid earned $1,500
Unearned financial aid $3,500

This simplified example illustrates the general calculation. The actual amount the College must return and any student repayment obligation depend on federal requirements and the student's individual circumstances.

What Happens If I Withdraw?

If a student withdraws from the College, the Financial Aid Office will review their federal financial aid eligibility and determine whether a Return of Title IV Funds calculation is required.

The College will:
1) Determine the student's applicable withdrawal date.
2) Calculate the percentage of the academic term completed.
3) Determine the amount of federal financial aid earned.
4) Identify any unearned financial aid that must be returned.
5) Adjust the student's financial aid and student account, as applicable.
6) Notify the student of any resulting financial aid adjustments or repayment obligations.

Students who stop attending classes without officially withdrawing may also be subject to the R2T4 process.

Will I Owe Money to the College?

Withdrawing from the College may result in an outstanding student account balance.

If federal financial aid is returned, the funds previously applied toward tuition, fees, housing, or other educational expenses may be reduced or removed from the student's account.

Students are responsible for any remaining balance owed to the College after all applicable financial aid adjustments and institutional refunds have been processed.

The College's tuition refund policy and the federal Return of Title IV Funds policy are separate processes. A student may qualify for a tuition refund and still be required to return a portion of federal financial aid.

What Is a Post-Withdrawal Disbursement?

In some circumstances, a student may have earned more federal financial aid than was disbursed before withdrawing.

When this occurs, the student may be eligible for a post-withdrawal disbursement of federal financial aid, subject to federal eligibility requirements.

The Financial Aid Office will determine eligibility and notify the student or parent when authorization or additional action is required.

Important Information Before Withdrawing

Students considering withdrawal are strongly encouraged to contact the Financial Aid Office before making a final decision.

Withdrawal may affect:
- Current federal financial aid eligibility
- Future financial aid eligibility
- Federal student loan repayment obligations
- Satisfactory Academic Progress (SAP)
- Outstanding tuition and student account balances

The Financial Aid Office can help students understand the potential financial consequences of withdrawal and discuss available options.

Return of Title IV Funds Policy

For additional information about the College's procedures, calculation methodology, withdrawal requirements, and federal financial aid return process, please review the complete Return of Title IV Funds Policy.