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.