The OPSU Office of Scholarships and Financial Aid in accordance with 34CFR Sec. 668.22 calculates the Return of Title IV Funds (R2T4) for any student who receives Title IV Aid and subsequently withdraws before the end of the enrollment period (i.e. term).
Return of Title IV Aid
Included in the Higher Education Amendments of 1998 are provisions governing what must happen when a student who receives federal financial aid withdraws from school in any semester. These new policies became effective Fall 2000. All Title IV Aid recipients fall under the same policy.
“Withdrawal” means to stop attending or completing all regularly scheduled classes and class assignments during an enrollment period. Withdrawal does not mean dropping individual classes but attending others. “Withdrawal Date” means the student’s last date of attendance at a documented, academically-related activity or the midpoint of the semester for a student who leaves without notifying the institution. The portion of Federal Title IV funds (grants/loans) a student is allowed to receive is calculated on a percentage basis by comparing the total number of days in the semester to the number of days the student completed before withdrawing. For example, if the student completes 30% of the semester, the student earns 30% of the financial aid originally awarded for the semester. This means that 70% of the scheduled financial aid award remains unearned and must be returned to the federal government within 45 days after determination of the withdrawal. If a student withdraws after his/her financial aid file is ready to pay but before the disbursement has been made, a post withdrawal calculation will be processed to determine if the university must make a post withdrawal disbursement of federal funds. This disbursement will be made within 30 days of the determination of the student’s withdrawal.
Students who remain enrolled through at least 60% of the semester are considered to have earned 100% of the aid received and will not have to repay Federal Title IV grant funds.
Both OPSU and the student are responsible for returning unearned Title IV funds. The university’s portion of unearned funds to be returned is equal to the lesser of the entire amount of the unearned funds or the total tuition and fee charges multiplied by the percentage of unearned funds. The student is responsible for returning the amount of unearned funds not returned by the University. As a result, the student could owe OPSU charges that were originally paid at the time of disbursement. It could also mean that the student may be required to return funds released for personal expenses.
Funds will be returned to the Title IV programs (not to the recipients) in the following order:
- Unsubsidized Stafford Loan
- Subsidized Stafford Loan
- Pell Grant
- Other Title IV programs
No additional application for federal student aid will be considered by OPSU until all repayment is made or until defaulted student loans are satisfactorily resolved.