Policy

Return of Title IV (R2T4) Policy

Updated on 7 May 2021

United States Department of Education - Return of Title IV (R2T4) regulations

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This page should be read alongside the Apply for US Federal Loan financial aid for Dundee guide

Return of Title IV (R2T4) Policy

UNITED STATES DEPARTMENT OF EDUCATION

RETURN OF TITLE IV (R2T4) REGULATIONS

The law specifies how the University must determine the amount of Title IV program assistance (Direct Loans) that students earn if they withdraw or interrupt their studies. The Registry is responsible for calculating R2T4 and the Finance Office is responsible for transferring the funds. The Registry uses worksheets provided by the US Department of Education to calculate the R2T4 funds.

Within 30 days of the determination of the withdrawal date, the University of Dundee will perform the Return of Title IV fund calculation and notify the student of any overpayment. All funds must be returned to the lender within 45 days of the date of when the University determined that a student withdrew.

International students at the University of Dundee in receipt of a Tier 4 visa are subject to regular monitoring of their attendance in accordance with the UK Government’s immigration rules.

Official Withdrawal

The date of withdrawal is determined by the Supervisor/School Manager and will be the last date of attendance. This date will be also be used to inform NSLDS of the last date of recorded attendance. If the student received (or the University received on the student’s behalf) less assistance than the amount earned, the student may be able to receive those additional funds. If the student received more assistance than was earned, the excess funds must be returned by the University and/or the student. In the event a student receives all failing grades for a semester, the Registry will contact the School Office to determine if the failed grades were earned or represent a lack of attendance. If in the event it is determined that those grades were the result of lack of attendance, the School Office will attempt to determine the last day of attendance and use that date in the R2T4 calculations.

Unofficial Withdrawal

If the exact date cannot be determined, the University will use the last date of attendance. This date will be also be used to inform NSLDS of the last date of recorded attendance. If the student received (or the University received on the student’s behalf) less assistance than the amount earned, the student may be able to receive those additional funds. If the student received more assistance than was earned, the excess funds must be returned by the University and/or the student. In the event a student receives all failing grades for a semester, the Registry will contact the School Office to determine if the failed grades were earned or represent a lack of attendance. If in the event it is determined that those grades were the result of lack of attendance, the School Office will attempt to determine the last day of attendance and use that date in the R2T4 calculations.

Except in unusual circumstances, the withdrawal date determined by the University will be no later than 14 days after the student’s last date of attendance as noted from the attendance monitoring records.

Students who do not attend even one class, are ineligible for Title IV funds and all of the loan proceeds will be returned to the lender.

Calculation when a student withdraws

When a student withdraws during a payment period, the amount of Title IV program assistance that has been earned up to that point is determined by a specific formula provided by the US Department of Education.

The payment period is the semester for which the loan was certified and the per cent of attendance is calculated based on the number of calendar days in the payment period excluding the following: Weekends, Bank Holidays, University Closure Days, Christmas and Easter Breaks (undergraduate students only) divided by the total number of days in the payment period e.g.

  • 70 (total number of days student attended) = 63%
  • 110 (total number of days in the Payment period)

Students who complete more than 60% of the Payment Period are deemed to have earned 100% of the scheduled Title IV funds.

Outcome of assessment

In the case that a student has withdrawn and the US Title IV funding has arrived after the withdrawal and the student is still eligible for some of the loan funding, then the student will be notified that there is money available to the student or parent. The Cash Office will contact the student regarding this and arrange for the funds to be returned. The University must make this post withdrawal disbursement to the student and/or parent within 14 days after the refund has been calculated. If the post-withdrawal disbursement includes loan funds, the student may choose to decline the loan funds so that additional debt is not incurred. The Registry will use the R2T4 worksheets as provided by the US Department of education to determine how much of the loan may be retained and how much must be returned.

The University may automatically use all or a portion of your post-withdrawal disbursement (including loan funds, if the student accepts them) for tuition fees and residences. For all other University charges, the University needs the student’s permission to use the post-withdrawal disbursement. The decision on if the funds will be accepted will be determined by the student or parent before the money is posted to the student’s account. The student will be notified by e-mail and will have 14 days to respond.

There are some Title IV funds that students were scheduled to receive that cannot be earned once a student withdraws because of other eligibility requirements. For example, in certain circumstances, if a first-time, first-year undergraduate student has not completed the first 30 days of the program before withdrawal, the student will not earn any Direct loan funds that he or she would have received had the student remained enrolled past the 30th day. If the student receives (or the University receives on behalf of the student) excess Title IV program funds that must be returned, the University must return a portion of the excess equal to the lesser of:

  1. The institutional charges multiplied by the unearned percentage of the funds, or
  2. The entire amount of excess funds.

The school must return this amount even if it didn't keep this amount of the Title IV program funds. If the school is not required to return all of the excess funds, the student must return the remaining amount. Any loan funds that must be returned, the student repay in accordance with the terms of the promissory note. That is, scheduled payments are made to the holder of the loan over a period of time.

Students who have received a refund of their loan proceeds before withdrawing may be required to return part or all of those funds to the lender.

Title IV funds will be returned in the following order:

  1. Unsubsidized Federal Direct loans
  2. Subsidized Federal Direct loans
  3. PLUS Loan Funds

The requirements for Title IV program funds when students withdraw are separate from any refund policy that the University may have. Therefore, the student may still owe funds to the University to cover unpaid institutional charges. The University may also attempt to collect from the student any Title IV program funds that the University was required to return.

Under US federal law, the University is required to report any changes to your enrolment within tight timescales. For students who withdraw from their studies, suspend their studies, or complete their studies earlier than expected, it may be necessary, to complete a Return to Title IV (R2T4) calculation, and arrange for the return any ‘unearned’ or credit balance funds to the US Department of Education within 14 days of withdrawal date.

Further information and guidance regarding the University’s refund policy 

Further information regarding visa and immigration policies

If you have questions about your Title IV program funds, you can call the Federal

Student Aid Information Center at 1-800-4-FEDAID (1-800-433-3243). TTY users may call 1-800-730-8913. Information is also available on Student Aid

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Corporate information category Fees