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Return of Title IV (R2T4) Funds

Federal regulations require Title IV financial aid funds to be awarded under the assumption that a student will attend the institution for the entire period in which federal assistance was awarded. When a student withdrawals from all active courses during a payment period for any reason he/she may no longer be eligible for the full amount of Title IV funds that he/she was originally scheduled to receive. The return of funds is based upon the premise that students earn their financial aid in proportion to the amount of time in which they are enrolled. This includes students who are registered not attending in all active courses during the payment period.

Federal regulations established by the U.S. Department of Education require the financial aid office to perform a calculation, Return of Title IV Funds (R2T4), to determine the percentage of federal financial aid a student has earned in the designated payment period. This is based on the last date of an academically related activity in all active courses during the payment period. The following enrollment changes may initiate an R2T4 calculation:

  • Complete withdrawal from all courses within a payment period.
  • Complete withdrawal from all courses in which a student is receiving Title IV funding within a payment period.
  • Course registration status changes to Registered Not Attending (RN) in all active classes.
  • Withdrawing/dropping from modular class without providing written confirmation of return to course later in payment period.
    • A student who withdraws from a part-of-term class within the payment period must still be attending another class or is considered to be a withdrawal, even if registered for future classes in that same period. The student must at the time of withdrawal from a part-of-term class (if they are not attending another class) provide a written statement to the college indicating their intent to attend a future class within that term, or the student is a withdrawal and an R2T4 calculation must be completed. If the student provides written confirmation, but doesn’t attend that future class a R2T4 calculation must be completed using the last date of attendance of prior course.
  • Completing a modular course within a payment period then dropping, not attending, or withdrawing from a course starting later in the payment period.
  • Failure to earn a passing grade in the last course in a payment period even if a student completed a modular course early in the payment period.
  • Failure to earn a passing grade in all courses attempted in the payment period.
  • Completing all courses before the scheduled last day of a payment period.
  • Not returning from a Leave of Absence during a Center for Training and Development clock-hour program.