Return to Title IV (R2T4)


It is the policy of Midland College to return unearned federal funds to the appropriate federal programs when a student completely withdraws from the institution or stops attending all courses, in accordance with 34 CFR, section 668.22(a) of the Reauthorization of the Higher Education Act of 1965.  These federal guidelines assume that a student earns his or her aid based on the period of time he or she remains enrolled.  During the first 60 percent of the enrollment period, a student “earns” Title IV funds in direct proportion to the length of time he or she remains enrolled.  If the student completely withdraws from school during the semester, or quits attending, but fails to officially withdraw, the student may be required to return the unearned part of the funds which were received to help pay educational expenses for the semester.

Liability for return of Title IV funds will be determined according to the following guidelines:
  • If the student remains enrolled and attends class beyond the 60% mark of the semester in which aid is received, all federal aid is considered earned and not subject to this policy.
  • If the student completely withdraws from all Title IV eligible classes before completing 60% of the semester, a prorated portion of the federal aid received must be returned to the federal aid programs equal to the percentage of the semester remaining.
  • If all eligible aid was not already disbursed to the student before the student withdrew, the earned portion of aid will be paid to the student as a post-withdrawal disbursement within 30 days of the date of determination that the student has withdrawn.
  • If the student does not officially withdraw from classes and stops attending all classes, a prorated portion of the federal aid received, based on the documented last date of attendance, must be returned to the federal aid programs.
  • If a student withdraws from all classes prior to disbursement of funds, a post-withdrawal calculation will be conducted to determine the actual amount of earned funds.  In some instances, students will be asked to provide confirmation to accept or decline some or part of the unearned funds.
Return of Title IV funds (R2T4) will be distributed according to federal regulations within 45 days of the date of determination on the R2T4 worksheet provided by the U.S. Department of Education.  The funds will be returned to the appropriate federal programs in the order mandated by 34 CFR 668.229(i):
  • Federal Unsubsidized Direct Loan
  • Federal Subsidized Direct Loan
  • Federal Direct Parent PLUS Loan
  • Federal Pell Grant
  • Federal Supplemental Educational Opportunity Grant (FSEOG)
If a student is required to return federal funds, the student will be notified and allowed 45 days from the date of determination to return the funds to the Midland College Cashier's Office.  If the student does not return the amount owed within the 45 days period:
  • The amount of overpayment will be reported to the U.S. Department of Education via the National Student Loan Data System (NSLDS) and the student will be referred to the Department of Ed for resolution of the debt.  Students with a Pell Overpayment flagged on NSLDS will be unable to receive federal aid at Midland College or any other institution until the debt is resolved.
  • A hold will be placed on all Midland College records until the debt is resolved.
Federal regulations require that students attend classes on campus or participate in an academically related activity in online classes prior to the census date.  Academic attendance will be verified by official class rosters submitted by instructors within 4 business days of the census date.  If the student is reported by an instructor for "non-attendance" prior to the official census date, financial aid for the class(es) will be removed from the student's account.  If there is a balance left on the account, it will be the responsibility of the student to pay for the balance at the Midland College Cashier's Office.

If a student is receiving Title IV aid at the time of his or her death, Midland College will determine the official date of withdrawal, no later than the date of death, and will calculate and return the unearned portion of funds to the appropriate federal programs.  Any balance remaining on the student's account at Midland College will be covered by institutional funds.