Return of Title IV Funds (R2T4)
Federal law requires that if you received a federal grant and/or loan and you drop or withdraw from ALL of your classes prior to the 60% point of the semester or if you fail to begin a late start class you may have to repay the Title IV funds.
Note: The earlier that you drop or withdraw, the more money you may have to pay back.
- If you receive Loan money and withdraw, you will pay back the money according to the Federal guidelines of the loan program.
- If you receive Federal Work Study money and withdraw, you do not owe anything back. You will get to keep any salary you have earned.
- If you are enrolled in short term classes without being enrolled in full semester classes and/or you withdraw or fail to attend those classes, you may be subject to the Return of Title IV calculation.
Timeframe to Repay
Once our office determines your last day of attendance, we will complete the R2T4 calculation and you will be notified via email or U.S. mail of the amount of financial aid program funds that must be returned. You have 30 days to return the entire funds to the college.
If full payment is not received within 45 days, the amount owed will be referred to the U.S. Department of Education for any student portion. At that time, you will lose all federal financial aid eligibility at all colleges and universities until the funds have been repaid in full or you have made satisfactory repayment arrangements with the U.S. Department of Education.
Sample of Return of Title IV Funds (R2T4) calculation
Step 1
Determine the total amount of federal funds for the semester
Student receives $2,908.00 Pell Grant award, $300.00 in SEOG.
$3,208.00 is the total amount of aid that the student was eligible to receive during the semester.
Step 2
Determine the percentage of funds earned by the student
There are 100 calendars days in the semester and the student withdraws from all classes on the 26th calendar day of the semester.
26 days / 100 days in the semester = 26% of funds earned
Step 3
Amount of the semester funds earned by the student
$3203.00 of aid received (Step 1) by the student divided by the percentage earned (Step 2) is:$3,208.00 X 26% = $34.08
Step 4
Amount of federal funds to be returned
Take the total amount of aid received (Step 1) minus the total amount of funds earned (Step 3), the result is:$3,208.00 – $834.08 = $2,373.92 to be returned
Step 5
Determine the amount of unearned funds to be returned by the school
The student was charged $255.00 for the semester.100% of the charges – 26% = 74% unearned by the school or $255.00 in charges X 74% = $188.70 unearned by the school
Step 6
Order of programs for return of funds by the school
Total to be returned - $188.70 Loans - $0.00 (no loans) Pell Grant – $188.70 SEOG - $0.00
Step 7
Initial amount of unearned funds due from the student
Subtract the amount due from school (Step 5) from the total amount to be returned (Step 4):$3,208.00 – $188.70 = $3,019.30
Step 8
Repayment of loan funds by the student
Subtract the total amount of loan funds returned by the school from the total amount of loan funds received by the student.$0.00 - $0.00 = $0.00
Step 9
Amount of grant funds to be returned by the student after calculating the grant protection
Subtract the amount of loan funds to be returned by the student (Step 8) from the balance of unearned funds (Step 7) by the student:$3019.30 - $0.00 = $3019.30 (Step 9a)Multiply by 50% of the grant funds received by the student (Step 1):$3,208.00 X 50% = $1,304.00 (Step 9b -student’s grant protection)Subtract from the balance of unearned funds (Step 9a) from the amount of grant protection (Step 9b):$3,019.30 - $1,594.00 = $1,415.30 (Step 9c to be returned by the student) S
Step 10
Order of grant programs for the return of funds by the student
Total Amount to be returned by the student - $1,415.30 Pell Grant Program - $1,415.30 SEOG - $0.00
Repayment of Institutional Refunds
Currently, you do not have to repay the institutional portion of the R2T4 calculation. However, in the future, you may be required to repay the institutional refund and if not paid, a hold will be placed on your San Diego Community College District records that will hold enrollment, grades, transcripts and other services.
