Return of Title IV Aid (R2T4)
Federal financial aid law specifies how a school must determine the amount of Student Financial Aid (SFA) program assistance that you earn if you completely withdraw from all of your classes. The law requires that, when you withdraw during a payment period, the amount of SFA program assistance that you have earned up to that point is determined by a specific formula. If you received (or your school received on your behalf) less assistance than the amount that you earned, you will be able to receive those additional funds. If you received more assistance than you earned, the excess funds must be returned.
The amount of assistance that you have earned is determined on a pro-rated basis. That is, if you completed thirty percent of the payment period, you earn thirty percent of the assistance you were originally scheduled to receive. Once you have completed more than sixty percent of the payment period, you earn all of your assistance.
If you received excess funds that must be returned, SFCC must return a portion of the excess equal to the lesser of:
- your institutional charges multiplied by the unearned percentage of your funds, or,
- the entire amount of the excess funds.
If SFCC is not required to return all of the excess funds, you must return the remaining amount. Any loan funds that you must return, you (or your parent for a PLUS Loan) repay in accordance with the terms of the promissory note. That is, you make scheduled payments to the holder of the loan over a period of time.
If you are responsible for returning grant funds, you do not have to return the full amount. The law provides that you are not required to return 50 percent of the grant assistance that you receive that is your responsibility to pay. Any amount that you do have to return is a grant overpayment, and you must make arrangements with SFCC or the Department of Education to return the funds.
If there are SFA funds to be returned, they must be returned in the following order until the return amount is exhausted.
- Unsubsidized Stafford Loan
- Subsidized Stafford Loan
- PLUS Loan
- Pell Grant
- Other Title IV programs
Schools may exclude unreturnable books or equipment costs, fees that are passed on to other entities, and discretionary costs such as parking fines and service charges from the Return of Title IV Funds calculation.
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.
If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, the amount of Title IV grant or loan assistance earned by the student must be determined. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds must be returned. If the amount disbursed to the student is less than the amount the student earned, and for which the student is otherwise eligible, he or she is eligible to receive a Post-withdrawal
A student is considered to have withdrawn from a payment period or period of enrollment if:
- in the case of a program that is measured in credit hours, the student does not complete all the days in the payment period or period of enrollment that the student was scheduled to complete;
- in the case of a program that is measured in clock hours, the student does not complete all of the clock hours and weeks of instructional time in the payment period or period of enrollment that the student was scheduled to complete; or,
- for a student in a nonterm or nonstandard-term program, the student is not scheduled to begin another course within a payment period or period of enrollment for more than 45 calendar days after the end of the module the student ceased attending, unless the student is on an approved leave of absence.