Return of Title IV Funds Policy
This Return of Title IV Funds (R2T4) policy applies to anyone who receives federal financial aid, has begun classes, and subsequently either withdraws from the courses the student was scheduled to complete and/or receives all failing grades during the payment period. Fall, spring, and summer are the three payment periods.
Overview
When a student withdraws from their courses for any reason, including medical withdrawals, the student may no longer be eligible for the full amount of Title IV funds the student was originally scheduled to receive. Stevenson University follows the federally prescribed policies and procedures for calculating whether the student has earned all or a portion of their federal financial aid.
The calculation to determine whether any aid must be returned is based on the percentage of earned aid using the following Federal Return of Title IV Funds formula:
- The number of days completed up to the withdrawal date divided by the total days in the semester = percentage of the semester completed. This percentage is also the percentage of earned aid.
- Funds are returned to the appropriate federal program based on the percentage of unearned aid using the following formula:
- (100% of the aid that could be disbursed minus the percentage of earned aid) multiplied by the total amount of aid that could have been disbursed during the semester = aid to be returned.
If a student earned less aid than was disbursed, Stevenson University would be required to return a portion of the funds and the student may be required to return a portion of the funds. When Title IV funds are returned, the student is responsible for any remaining institutional charges on their student account. If a student earned more aid than was disbursed, SU would owe the student a post-withdrawal disbursement which must be paid within 120 days of the withdrawal. The University must return the amount of Title IV funds for which it is responsible in the following order:
- Unsubsidized Direct Loans (other than PLUS loans)
- Subsidized Direct Loans
- Federal Perkins Loans
- Direct PLUS Loans
- Federal Pell Grants for which a Return of Funds is required
- Federal Supplemental Opportunity Grants for which a Return of Funds is required
- Other assistance under this Title for which a Return of Funds is required
Withdrawal Date
The date used to determine the student's withdrawal is either the date on which the student submits the Withdrawal or Hiatus from the University form; or the date the student otherwise provided official notification to the Registrar's Office of their intent to withdraw; or the student's last date of attendance at a documented academically related activity; or the mid-point of the semester if the student stops attending all classes without notifying the University.
The federal statutory interpretation of the Return of Title IV Funds Policy and all related information represents a best faith effort attempt by Stevenson University and is subject to revision at any time pending federal regulatory changes and interpretation. Any revisions to the Return of Title IV Funds Policy will be posted on the University website. The current policy is located at Stevenson Financial Aid and select the link for "Policies and Information."