What Are Title IV Funds
Title IV funds are awarded to a student under the assumption that the student will attend school for the entire period for which the assistance is awarded. When a student withdraws, the student may no longer be eligible for the full amount of Title IV funds that the student was originally scheduled to receive. If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, the amount of Title IV grant or loan assistance earned by the student must be determined. If the amount disbursed to the student is greater than the amount the student earned, unearned funds must be returned. If the amount disbursed to the student is less than the amount the student earned and for which the student is otherwise eligible, he or she is eligible to receive a Post-Withdrawal disbursement of the earned aid that was not received.
Federal Student Aid Handbook, Volume 5- Chapter 1 Pg 5-32
- Title IV federal financial aid includes Pell, SEOG, and Teach Grants, Direct Loans (subsidized and unsubsidized), Graduate and Parent PLUS Loans, Perkins and Nursing Loans. Federal Work Study is excluded.
- A withdrawal (WD) is when the student formally and permanently ceases to be a matriculated student at the university.
- A leave of absence (LOA) is when the student formally ceases enrollment for a specified period of time with the intent to re-enroll.
- When a student takes a WD or LOA, a return calculation, called a Return to Title IV Calculation (R2T4) must be performed. This calculation determines, based on period of enrollment, the percentage of aid earned, based on the number of days attended.
- Refunds to the student and/or the federal financial aid programs by the student or the University will be made within 45 days of the date that the University determines the student has withdrawn.
- Once the earned amount of a student’s financial aid has been applied to their institutional charges, the student is responsible for any remaining balance due the University.
- Even if aid does not need to be returned, it is possible that you could owe money to the university. This is based on the Student Accounts refund policy.
- If you did not file a FAFSA, did not receive federal financial aid or did not accept the offered financial aid, the Federal Return to Title Four (R2T4) calculation does not need to be done. Offered aid will be canceled.
- If a student withdraws after the 60% point of completion in the term, the student is considered to have earned all of their aid, and no R2T4 calculation is required.
- Students who withdraw or take a leave from the University are required to complete an Exit Counseling Session to review their Rights and Responsibilities as a student loan borrower. This session will provide information on loan repayment, including deferments, grace periods, loan consolidation, and loan default.
If you are planning on withdrawing and would like to discuss potential financial consequences, or you have additional questions, please do not hesitate to contact the Office of Student Financial Services at (207) 602-2342.