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Graduate Catalog

University Financial Aid Refunds to Institutional and Title IV Programs

Return of Title IV (R2T4) / Withdrawal Policy

Federal regulations require the Financial Aid Office to recalculate a student’s federal financial aid eligibility if the student withdraws, drops out, is dismissed, or takes a leave of absence before completing 60% of the semester or payment period. This recalculation affects Title IV funds, including Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), and Direct Loans.

Percentage of Payment Period Completed

The percentage of the semester completed is calculated as:

\text{Days completed up to withdrawal date} \div \text{Total days in the semester}Days completed up to withdrawal date ÷ Total days in the semester

  • Breaks of five days or more are not included in the calculation.

  • This percentage represents the amount of aid earned.

Example:

  • A student withdraws after 44 days of a 110-day semester:

    • 44 ÷ 110 = 40%

    • The student has earned 40% of their federal aid.

    • If $6,000 was disbursed, $2,400 is earned, and $3,600 must be returned.

Funds Returned

  • Unearned funds are returned to the appropriate federal program in the following order:

    1. Unsubsidized Direct Loans

    2. Subsidized Direct Loans

    3. Direct PLUS Loans

    4. Federal Pell Grants

    5. Federal Supplemental Opportunity Grants (FSEOG)

    6. Other Title IV programs (e.g., LEAP)

  • Institutional and state funds may also be adjusted according to University policy.

  • Students may owe a debit balance if returned federal funds exceed disbursed amounts.

Post-Withdrawal Disbursements

  • If a student earned more aid than was disbursed, the institution will issue a post-withdrawal disbursement within 120 days of the withdrawal date.

  • Students must authorize any disbursement that will be applied to institutional charges.

Institutional Responsibilities

  • Title IV funds must be returned within 45 days of determining the student’s withdrawal or leave of absence.

  • The Financial Aid Office tracks enrollment in modular courses (e.g., 8-week sessions) to determine earned aid.

    • Dropping a later module while attending an earlier module does not count as a withdrawal.

    • Written confirmation from the student planning to attend a subsequent course within 45 days of last attendance prevents a withdrawal designation.

Unofficial Withdrawals

  • Students who stop attending classes but do not formally withdraw are considered unofficial withdrawals.

  • Financial aid will be recalculated based on the date attendance ceased (or at 50% unearned if no attendance data is available).

  • Repayment obligations for disbursed loans may begin on the unofficial withdrawal date.

  • Students who unofficially withdraw will not be eligible for aid in future semesters until:

    1. Courses are successfully completed, and

    2. Satisfactory Academic Progress (SAP) standards are met.

  • Undergraduate students must apply for readmission through the Registrar.

  • Graduate students must apply for readmission through Graduate Admissions.

Satisfactory Academic Progress (SAP) Considerations

  • Any withdrawal, whether official or unofficial, may negatively affect SAP and financial aid eligibility.

  • Students are encouraged to review the SAP section on the Financial Aid website: financialaid.gallaudet.edu

Key Definitions

  • Return to Title IV (R2T4) Calculation: Determines earned aid for students who do not complete all scheduled days of the payment period.

  • Overaward: Occurs when a student receives more aid than eligible, requiring recalculation and potential reduction of awards.