Return of Title IV Funds | Knowledge Center

SUBJECT: Return of Title IV Funds

Schools are required to provide students with details of all refund policies applicable to the school as well as information on the Title IV program requirements for the treatment of Title IV funds when a student withdraws.

If you identify areas requiring corrective action, we recommend that you complete an Action Plan.

COVID-19

The relief for students who withdrew due to COVID-19 concludes at the end of the payment period or period of enrollment that includes the date of May 11, 2023. Institutions may not use the Coronavirus Indicator for withdrawals from payment periods or periods of enrollment that began after May 11. For more specific information on the sunsetting of COVID_19 waivers and flexibilities, please see the June 14, 2023 electronic announcement.

Activity Bar:

R2T4 Activity 1: Return of Title IV Funds File Review Worksheet

R2T4 Activity 2: Leave of Absence (LOA) Checklist

R2T4 Activity 3: Understanding an R2T4 Calculation

Additional Links:

2023-2024 FSA Handbook, Volume 5, Chapter 1 (digital version); (pdf version)

2023-2024 FSA Handbook, Volume 5, Chapter 2 - Part 1 (digital version); (pdf version)

2023-2024 FSA Handbook, Volume 5, Chapter 2 – Part 2 (digital version); (pdf version)

2023-2024 FSA Handbook, Volume 5, Chapter 3 - Part 1 Case Studies (digital version); (pdf version)

2023-2024 FSA Handbook, Volume 5, Chapter 3 - Part 2 Case Studies (digital version); (pdf version)

2023-2024 FSA Handbook, Volume 5, Appendix: Return of Title IV Aid Worksheets (digital version); (pdf version)

Code of Federal Regulations: 34 CFR 668.22

Federal Register, September 2, 2020

Federal Register, October 29, 2010

Program Integrity Link Questions & Answers – Return of Title IV Funds

The electronic R2T4 process is available through our Common Origination and Disbursement System (COD). For additional information regarding the COD R2T4 process, please review the March 1, 2019 electronic announcement, the COD R2T4 tutorials located on our training website – fsatraining.ed.gov or contact our COD School Relations Center directly at 1-800-848-0978.

For reference, the table below lists the regulatory areas related to R2T4. The left column shows the title of the regulatory section and summarizes the main content of some of the sections. The middle column includes a link to each regulatory section in the Electronic Code of Federal Regulations and any related guidance posted in the Knowledge Center. Where applicable, the associated R2T4 assessment activity is listed in the third column.

R2T4 Regulations

Section Title	Links	Assessment Activity
Definitions 34 CFR 668.22(l) Includes: Steps to identify the “date of the institution’s determination that the student withdrew” for an institution that is not required to take attendance. A program is “offered in modules” if the program uses a standard term or nonstandard-term academic calendar, is not a subscription-based program, and a course or courses in the program do not span the entire length of the payment period or period of enrollment. “Academic attendance” and “attendance at an academically-related activity” must include academic engagement as defined under 34 CFR 600.2 A student in a program offered in modules is scheduled to complete the days in a module if the student's coursework in that module was used to determine the amount of the student's eligibility for title IV, HEA funds for the payment period or period of enrollment.	34 CFR 668.22 (l)
General Requirements 668.22(a), Includes: Re-entry and written confirmation Students in a standard or nonstandard-term program, excluding subscription-based programs, considered withdrawn if not scheduled to begin another course within a payment period or period of enrollment for more than 45 calendar days after the end of the module the student ceased attending, unless the student is on an approved leave of absence. Students in a nonterm program or a subscription-based program are considered withdrawn if unable to resume attendance within a payment period or period of enrollment for more than 60 calendar days after ceasing attendance unless the student is on an approved leave of absence. Withdrawal exemptions – a student is not considered withdrawn if student successfully completes: All requirements for graduation from his or her program before completing the days or hours in the period that the student was scheduled to complete One module that includes 49% or more of the number of days in the payment period A combination of modules that when combined contain 49% or more of the numbers of days in the payment period; or Coursework equal to or greater than the coursework required for the institution’s definition of a half-time student	34 CFR 668.22(a)	A Guide to Creating a Policies & Procedures Manual, Section 3.2
Withdrawal Date for a student who withdraws from a school that is required to take attendance 34 CFR 668.22(b) Definition of an institution required to take attendance 34 CFR 668.22(b)(3) Withdrawal date for a student who withdraws from a school that is not required to take attendance 34 CFR 668.22(c)	34 CFR 668.22(b) 34 CFR 668.22(c) See also: DCL GEN-11-14 DCL GEN-04-03 Step 2 of the Return of Title IV Aid Worksheets	R2T4 Activity 1: Return of Title IV Funds File Review Worksheet R2T4 Activity 3: Understanding an R2T4 Calculation
Approved leave of absence 34 CFR 668.22(d) Reviews all necessary requirements to develop an approved leave of absence for Title IV purposes. Includes: The leave of absence does not involve additional charges by the institution; The number of days in the approved leave absence, when added to the number of days in all other approved leaves of absence, does not exceed 180 days in any 12-month period; Clock hour, nonterm credit hour and subscription-based programs do not have to permit the student to complete coursework the student began prior to the leave of absence.	34 CFR 668.22(d)	R2T4 Activity 2: Leave of Absence (LOA) Checklist
Calculation of the amount of Title IV assistance earned by the student 34 CFR 668.22(e)	34 CFR 668.22(e) See also: Step 3 of the Return of Title IV Aid Worksheets
Percentage of payment period or period of enrollment completed 34 CFR 668.22(f)	34 CFR 668.22(f) See also: Step 2 of the Return of Title IV Aid Worksheets
Return of unearned aid, responsibility of the school 34 CFR 668.22(g) Return of unearned aid, responsibility of the student 34 CFR 668.22(h)	34 CFR 668.22(g) 34 CFR 668.22(h) See also: Steps 4 through 6 of the Return of Title IV Aid Worksheets Steps 7 through 10 of the Return of Title IV Aid Worksheets
Order of Return of Title IV funds 34 CFR 668.22(i) Unsubsidized Federal Direct Stafford Loans Subsidized Federal Direct Stafford Loans Federal Direct PLUS Loans Federal Pell Grants Iraq & Afghanistan Service Grants FSEOG TEACH Grants	34 CFR 668.22(i) See also: Steps 6 and 10 of the Return of Title IV Aid Worksheets
Timeframe for the return of Title IV funds 34 CFR 668.22(j) Includes: An institution must return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution’s determination that the student withdrew.	34 CFR 668.22(j)
Consumer Information 34 CFR 668.22(k)); 34 CFR 668.43(a)	34 CFR 668.22(k) 34 CFR 668.43(a)
Post-Withdrawal Disbursements 34 CFR 668.22(a)(5); 34 CFR 668.22 (a)(6); 668.164(j)	34 CFR 668.22(a)(5) 34 CFR 668.22(a)(6) 34 CFR 668.164(j) See also: Step 4 of the Return of Title IV Aid Worksheets