Return of Title IV funds.
In plain English
Return of Title IV funds (often shortened to R2T4) is a federal calculation that kicks in when you drop out or withdraw before finishing a term. "Title IV" means federal student aid: Pell Grants, federal loans, and similar programs. The rule says you only earned the portion of aid that matches the share of the term you completed. If you leave partway through, the school and sometimes you must return the unearned part to the government. Once you pass roughly the 60 percent point of the term, you are generally treated as having earned all of it.
01Why it matters
Withdrawing can leave you owing money back even if you already spent it on rent and food, and it can also put your school account into a balance that blocks transcripts. Knowing the 60 percent line before you drop matters.
02The math, step by step
You withdraw after completing 30 percent of a term. Under R2T4, you earned only 30 percent of your federal aid, so 70 percent of what was disbursed is treated as unearned and has to be returned. Some of that may fall on you to repay.
03What this is NOT
R2T4 is NOT the school's refund policy. The school may refund part of your tuition on its own schedule, but R2T4 is a separate federal rule about returning aid to the government, and the two numbers rarely match.
04Receipts
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Plain-English answers from our glossary. Receipts included. Never advice.
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