Withdrawal Impact on Financial Aid
The Federal Department of Education regulates the treatment of all federal grants and loans. For those students who withdraw during a semester, the college is required to exercise the “Return to Title IV calculation (R2T4)
The R2T4 is based on the number of days in the semester divided into the number of days attended based on the date of withdrawal. This provides the percentage of Title IV aid a student has "earned."
For example, if the semester is 100 days, and a student’s withdrawal date falls on the 43rd day of the semester, the formula used would be 43 / 100 or 43 percent. This percentage would then be applied to the Title IV aid disbursed, or potentially disbursed, in order to determine how much and which proceeds need to be returned. Any “earned” percentage greater than 60 will yield the student 100% retention of all eligible Title IV aid.
The order in which funds are returned is also determined by the Federal Department of Education. The Attribution Table requires funds to be returned as follows:
||Direct Unsubsidized Loan
||Direct Subsidized Loan
||Direct Parent Loans
||Supplemental Education Opportunity Grant (SEOG)
||Other Title IV Programs
NOTE: Federal Work-Study (FWS) must be earned and is not included in the R2T4 calculation. Funds earned prior to withdrawal may be kept by the student or retained, with student authorization, by the school for a balance owed. Students may not continue working in the FWS program after their withdrawal date.