A Return of Title IV Funds (R2T4) calculation is processed for a student who meets the following conditions: receives grant funds (or who meets the conditions that may entitle the student to a late disbursement), begins attending classes, and completely withdraws his/her period of enrollment. The Return of Title IV Funds calculation is a policy of the United States Department of Education that determines the amount of grant funds SUSCC and/or the student are to return to a federal financial aid program. The term “Title IV Funds” refers to the Federal Financial Aid Programs authorized under the Higher Education Act of 1965 (as amended) that at SUSCC include the following programs: Direct Student Loans, Direct Plus Loans, Federal Pell Grants and Federal Supplemental Opportunity Grants (FSEOG).
The student’s recalculated award amount is used in the Return of Title IV Funds calculation. The percentage of Title IV aid earned is found by dividing the number of calendar days completed by the time of withdrawal date by the number of calendar days in the term. If the student has completed more than 60% of the term, the student is considered to have earned 100% of the Title IV aid. The amount of Title IV aid earned is found by multiplying the amount of aid disbursed for the term plus what could have been disbursed by the percentage of Title IV aid earned. If the amount earned is less than the amount of aid disbursed, the difference must be returned. If the student earned more than what was disbursed, a late disbursement may be due. If the amount earned equals the amount disbursed, no return and no disbursement are to be made. SUSCC returns the lesser of (a) the total amount of unearned aid or (b) an amount equal to the student’s institutional charges multiplied by the percentage of aid unearned.
Effective Summer 2021 SUSCC opted to early implement the R2T4 Final Rules for modules as instructed by the Federal Register. These rules allow for withdrawal exemptions. Given these are exemptions, no R2T4 calculations are required given students meeting one or more of these exemptions are not considered withdrawn. In the case a return is needed, students are not expected to pay the college any money associated with Title IV calculations. The college will return the funds on behalf of the student with no further obligations due from the student, per college directive.