If a student withdraws from the College and the student received Title IV Federal Student Aid (FSA) assistance during the period (the specific term, quarter, or payment period for which the Return to Title IV refund must be calculated), the College must determine the amount of Title IV funds a student has earned at the time of withdrawal using the Return of Title IV (R2T4) funds formula. The Title IV FSA program rules may require a return to the Federal government of all, or a portion of, the amounts disbursed during the term. The amount of FSA assistance earned by a student is based upon the following formula. Students should consult their Financial Aid officer regarding their program’s specific measurements.
Credit Hour Programs calculation = Number of Days Completed in the Payment Period Through Withdraw Date ÷ Total Number of Days in the Payment Period
Note: Scheduled breaks of at least five consecutive days are excluded from the total number of calendar days in the numerator and denominator. The calendar days on an approved leave of absence are excluded from both the numerator and denominator. Percentages are calculated to the fourth decimal place.
Based on the calculation, through the 60% point in each period, a pro rata schedule is used to determine how much Title IV FSA funding the student has earned at the time of withdrawal. After the 60% point, a student has earned 100% of the Title IV FSA funds. (Sample Return of Title IV calculations are available from the institution’s Financial Aid Office upon request.)
Title IV FSA funds that require refund are credited in the following order:
- Unsubsidized Direct Stafford loans (other than Graduate PLUS loans)
- Subsidized Direct Stafford loans
- Direct PLUS
- Federal Pell Grants
- Federal Supplemental Educational Opportunity Grant (FSEOG)