The Federal Return of Title IV funds formula (R2T4) dictates the amount of Federal Title IV aid that  must be returned to the federal government or the lending institution   by   the   school   and/or   the student.        The    federal    formula    is applicable    to    an    eligible    student receiving federal aid when that student withdraws   on    or    before    the    60%    point    in time   in   the   payment   period.   If   a    student does not begin   training, the   R2T4   formula does    not   apply.

The  federal  formula  requires  a  Return   of Title   IV   calculation   if    the    student received or could have received (based on eligibility criteria) federal financial assistance    in    the    form    of    Pell    Grants, PLUS   loans,   Stafford   Loans,    and    withdraws on or before completing 60% of the payment period,  The   percentage   of   Title   IV   aid earned is equal to the  percentage  of  the payment    period    that    was    completed    as    of the  withdrawal  date  if  this  occurs  on  or before   the   60%   point    of    time.   The percentage that has not been earned is calculated    by    subtracting    the    percentage of    Title    IV    aid    earned    from 100%. Title IV funds are returned in the following order, unsubsidized loans, subsidized loans,  Pell grants. Examples of the R2T4 policy are available on request in the business office.