Return of Title IV funds

The aid office identifies the withdrawal date, calculates the percentage of the payment period completed, and determines earned versus unearned aid. Unearned aid is returned to the Department of Education within the regulatory timeframe. The student is notified of any balance owed to the institution or to the Department.

Example: a student withdraws after completing 30 percent of the term. Seventy percent of the Title IV aid is unearned. The institution returns its share of the unearned aid and bills the student for any remainder that the regulations assign to the student. The student’s future aid eligibility can be affected until the debt is resolved.

Satisfactory academic progress governs ongoing eligibility based on grades and pace. A return-of-funds calculation is a one-time settlement triggered by withdrawal. Institutional refund policies for tuition may differ from the federal R2T4 schedule; both can apply.

Using the last date of login rather than the last date of documented academic engagement for online courses. Failing to perform the calculation for unofficial withdrawals. Assuming that completion of more than 60 percent of the period eliminates all return obligations when post-withdrawal disbursements or other adjustments may still be required.