Calculating R2T4 (Return of Title IV Funds)
When you drop your classes once a term has begun, the number of days enrolled before dropping all classes is translated into Earned Funds. Conversely, the remaining days left in a quarter/term is considered Unearned Funds. The following formula is used to calculate the percentage of Earned versus Unearned funds in a quarter/term:
For example, let's say you dropped all your classes for the Spring Term on the 36th day of a quarter/term which consists of 78 calendar days in the quarter/term. You have Earned 46% of your funds for the quarter/term and you have 54% of Unearned funds for the quarter/term and must repay Unearned funds within 45 days.*
This repayment must be paid prior to receiving Financial Aid for the NEXT term. Although the Federal Government does not expect a repayment after the 60% point of a given term, you will be held to meeting Federal Satisfactory Academic Progress (SAP) requirement. Read more about SAP.
*You are encouraged to contact the Office of Financial Aid and Scholarships prior to dropping all classes to determine if there will be a financial repayment to the Federal Government.