Return of Title IV Funds Policy (R2T4)
If a recipient of federal title IV aid withdraws from an institution during a payment period or period of enrollment in which the student began attendance, the amount of grant or loan assistance to be returned to the title IV programs must be calculated as outlined in the Higher Education Amendment of 1998.
When is R2T4 required?
R2T4 is required when a student receives title IV financial aid and withdraws from all of his/her classes within the first 60 % point of the term, drops out, fails to earn a passing grade or is expelled from the university. Since funds are awarded based on a student attending the entire term, UHD Office of Scholarships and Financial Aid (OSFA) must recalculate a student’s award based on the actual number of days the student attended. The calculation will determine if the student received funds for which he or she is NOT eligible or if he or she is eligible for a post withdrawal disbursement.
The OSFA encourages students to consult with a Financial Aid Counselor before they actually withdraw. The counselor will explain the Return to Title IV Policy and how it will affect the student.
- The term “Title IV Funds” refers to the federal financial aid programs authorized
under the Higher Education Act of 1965 (as amended) and includes the following programs:
Federal Direct Subsidized Loan, Federal Direct Unsubsidized Loan, Federal Grad PLUS, Federal Direct PLUS loans, Federal Pell Grants, Federal SEOG.
- A student’s withdrawal date is:
- the date the student began the institution’s withdrawal process (as outlined below)
or officially notified the institution of intent to withdraw; or
- the midpoint of the period for a student who leaves without notifying the institution;
- the student’s last date of attendance at a documented academically-related activity.
If you fail to earn a passing grade in at least one of your courses (i.e., all F’s, U’s and I’s or a combination of non passing grades) during a semester, you are considered to have, for purposes of federal Title IV funds, unofficially withdrawn from the university. As a result, a federal withdrawal calculation must be performed to determine the amount of Title IV funds that you must repay. Once semester grades post, and if you fail to earn a passing grade in at least one of your courses, UHD will perform the federal withdrawal (Return of Title IV) calculation.
If you have earned the failing grade or received a grade change and can show proof that you completed at least one of the courses please complete the appropriate “Unearned Aid Letter” and upload to your checklist.
Official Withdrawal Process
Any notification of a withdrawal or cancellation of classes should be done online by the deadline published in the Academic Calendar. The Registrar’s office is the primary contact for withdrawal or cancellation of classes. To officially withdraw from courses, a student should:
- Access student e-services
- Select “My Registration & Schedule”
- Select “Register/Drop Classes”
- Enter your log in information (UHD-ID/Password)
- Select “Register/Drop Online”
- Select the appropriate semester for which you would like to withdraw
- Select all the classes to withdraw
- Confirm the complete withdrawal
- A confirmation page will be displayed.
If the student does not complete the official withdrawal process, the OSFA will use the best available information to determine the date of withdrawal to process the Return to Title IV calculation.
Procedures for R2T4 calculation:
UHD OSFA will determine the date a student began the withdrawal process. Based on available information, the OSFA will use the earliest date, which is established as described above. UHD OSFA will run a withdrawal report on a weekly basis up until the last day to withdraw, to identify students who have withdrawn from the university.
Based on the date determined, the OSFA will then determine the percentage of the semester the student attended. This percentage is then applied to the aid disbursed or that could have been disbursed to determine the amount of aid earned by the student. If the amount disbursed to the student is less than the amount earned, the OSFA will notify the student of his or her eligibility and giving them the opportunity to receive that aid. If the amount disbursed to the student is greater than the amount earned, unearned funds have to be returned. UHD OSFA must return the amount of title IV funds for which the institution is responsible for returning no later than 45 days after the date the institution determined that the student withdrew.
Title IV aid is earned in a prorated manner on a per diem basis up to and including the 60% point in the semester. Title IV aid and all other aid is viewed as 100% earned after that point in time.
The percentage of Title IV aid earned shall be calculated as follows:
Number of days completed by student
= Percent of term complete
Total number of days in term*
The percent of term completed shall be the percentage of Title IV aid earned by the student.
*The total number of calendar days in a term of enrollment shall exclude any scheduled breaks of more than five days .
The percentage of Title IV aid unearned (i.e., to be returned to the appropriate program) shall be 100% minus the percent earned. Unearned aid shall be returned first by UHD from the student’s account and is calculated one of two ways:
Total institutional charges X percent of unearned aid = amount returned to program(s)
Total amount of aid - Amount of aid earned = Amount of unearned aid.
Whichever of the two is the lesser amount would be what the institution would have to return.
Unearned Title IV aid shall be returned to the following programs in the following order:
- Unsubsidized Direct Loan
- Subsidized Direct Loan
- Parent Loans to Undergraduate Students (PLUS)
- Federal Pell Grant
- Federal SEOG
- Other Title IV grant programs
Exception: no program can receive a refund if the student did not receive aid from that program.
When the total amount of unearned aid is greater than the amount returned by UHD from the student’s account, the student is responsible for returning unearned aid to the appropriate program(s) as follows:
- Unsubsidized Direct Loan*
- Subsidized Direct Loan*
- Parent Loans to Undergraduate Students (PLUS)*
- Federal Pell Grant
- Federal SEOG
- Other Title IV grant programs
*Loans amounts are returned with the terms of the promissory note.
Notifications of the R2T4 calculation will be mailed to the student’s address on file. Refunds will be made available to students based on their chosen refund method and adjustments will be made available to students online via the student web portal. Students are responsible for any portion of their institutional charges that are left outstanding after Title IV funds are returned.
What is the repayment process?
Students who owe a repayment are encouraged to immediately pay the amount owed in full to the Cashier's Office. The Cashier’s Office will apply repayments to the student’s account. If the student is unable to repay the amount in full, he/she may request an approved Payment Agreement with the Student Accounting Office. The Payment Agreement will allow the student to repay in monthly installments to prevent the outstanding balance from being referred to external collections. Standard terms are as follows:
- Balance owed is less than or equal to $1200 (8 monthly payments)
- Balance owed is greater than $1200 (15 monthly payments)
Institutional and student responsibilities in regard to the return of Title IV funds:
UHD’s responsibilities in regard to the return of Title IV funds include:
- Providing each student with the information given in this policy;
- Identifying students who are affected by this policy and completing the Return of
Title IV Funds calculation for those student;
- Returning any Title IV funds that are due the Title IV programs
(UHD OSFA must return the amount of title IV funds no later than 45 days after the date the institution determined that the student withdrew)
The student’s responsibilities in regard to the return of Title IV funds include:
- Becoming familiar with the Return of Title IV policy and how complete withdrawal affects
eligibility for Title IV aid;
- Returning to the Title IV programs any funds that were disbursed directly to the student and which the student was determined to be ineligible for via the Return of Title IV Funds calculation.
If you would like examples of the refund policy, contact the Office of Scholarships and Financial Aid.
Refunds on all institutional charges, including tuition and fees, will be calculated using the state refund policy published in the UHD Class Schedule.