Return of Title IV Funds (R2T4)

Upon withdrawal, a Return to Title IV (R2T4) calculation is processed. The Higher Education Amendments of 1998 changed the formula for calculating the amount of aid a student and school can retain when the student totally withdraws from all classes. Students who withdraw from all classes prior to completing more than 60% of an enrollment term will have their eligibility for aid recalculated based on the percent of the term completed. Federal Aid is returned according to the Return of Title IV Funds process as mandated by Federal Law. ENC is required to use the Return of Title IV Funds process to calculate the unearned portion of financial aid received and return it according to the federal schedule.

Title IV federal and state financial aid will be repaid to the appropriate program(s) as mandated by regulations published by the U.S. Department of Education. Title IV refunds will be repaid in the follow order:

  • Unsubsidized Federal Direct Loan,
  • Subsidized Federal Direct Loan,
  • Federal Perkins,
  • Federal Direct PLUS Loan
  • Federal Pell Grant
  • FSEOG Grant
  • Teach Grants

Students begin earning financial aid from the first day of class. The percentage of financial aid earned is determined by dividing the number of days the student completed in the term, by the total number of days in the term. If the student attended 60% or more days, the student can retain all aid originally awarded. If the student attended less than 60%, ENC will return funds accordingly.

Example: If there were 109 total days in the term and the student completed 54 days, the student would earn 49.5 percent of the Title IV aid received (54/109 = 49.5%).  In our example, the student originally received the following federal awards for the term:

Pell Grant      $2,775.00
SEOG Grant        $600.00
Subsidized Federal Direct Loans      $2,723.00
Unsubsidized Federal Direct Loan          $990.00
Total Federal Aid   $7,088.00  

Per the government’s formula, the student earned $3,509 (49.5% x $7,088 = $3,509) Next, we need to determine the amount of aid that needs to be returned to the Title IV programs (total federal aid originally received minus aid earned).

Total Federal Aid Originally Received      $7,088.00
Total Federal Aid Earned     -$3,509.00
Total Federal Aid to be Returned   $3,579.00  

Note: The grace period associated with the repayment of federal loans begins to expire from the date of the withdrawal. Students who do not formally withdraw by submitting the Withdraw from College Form run the risk of losing refunds based on the previous chart. The college cannot guarantee these refunds if the student does not follow the proper procedure.

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Quincy, MA 02170
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