Tuition Refund Policy/R2T4 (Return to Title IV) Policy
The 1998 Reauthorization of the Higher Education Act requires institutions to calculate a return of Title IV funds on all financial aid students who withdraw from classes. As a participant of the US Direct Loan Program the University of Lincoln is required to adhere to US law regarding the repayment of Title IV funds following a student’s withdrawal from study. The Title IV programs that are covered by this law include Direct Loans and Direct PLUS Loans. This document sets out how this is calculated and the procedure followed to return ‘unearned’ funds to the US government.
Students are responsible for following the University’s interruption of studies (approved leave of absence) and/or withdrawal procedures, which can be found in the regulations.
A student is considered to have withdrawn, for financial aid purposes, if
– s/he stops attending classes before the end of term, or if
– s/he takes an approved leave of absence of more than 180 days over a 12 month period.
A student who stops attending classes, but who does not officially withdraw, will be subject to return of funds. This will be based on the date of withdrawal or on the last documented date of attendance as determined by the University.
Withdrawing from classes means that a student may not receive further financial aid disbursements, may have to repay some or all of the aid that has already been disbursed, and will be personally responsible for payment of any charges for tuition fees that are due.
If the University determines that a student has withdrawn, the student is no longer considered to be enrolled and in attendance. Therefore the student is no longer eligible for an in-school status or in-school deferment, and the University must report the student as withdrawn in NSLDS Enrolment Reporting.
Although each term’s US Federal Loans disbursement is posted to each student’s account at the start of each period students only earn the funds as they complete the period. If a student withdraws during the term the amount of Title IV program assistance s/he has earned is determined by a specific formula set out below.
If a student has received less assistance than the amount that s/he earned, s/he may be able to receive those additional funds. If a student received more assistance than s/he earned, the excess funds must be returned by the school and/or the student.
The amount of assistance a student has earned is determined on a pro rata basis, using the withdrawal date/last date of attendance. The number of days counted includes all calendar days in the term excluding University closures that exceed four days. The percentage of the term attended is used to determine the amount of ‘earned’ versus ‘unearned’ aid. The University will calculate R2T4 using worksheets provided by the US Department of Education for the purpose of this. All funds must be returned to the lender within 45 days of the withdrawal date.
For example, if a student completed 30% of the payment period or period of enrolment, s/he earn 30% of the assistance s/he was originally scheduled to receive. Once a student has completed more than 60% of the payment period or period of enrolment, s/he has earned all the assistance that s/he was scheduled to receive for that period.
The University is required to return a portion of the excess equal to the lesser of unearned Title IV aid or unearned institutional charges. The University must return this amount even if it didn’t keep this amount of the student’s Title IV program funds.
The student is responsible for the return of any difference. If a student is required to return Title IV funds to a Federal Loan program, the loan may be repaid in accordance with the existing terms of the loan program promissory note.
The requirements for Title IV program funds when a student withdraws are separate from any refund policy that the University has. Therefore, a student may still owe funds to the University to cover unpaid institutional charges. The University may also charge the student for any Title IV program funds that the University was required to return. The University’s withdrawal and refund policy can be found within the University Regulations.
There may be cases where The University of Lincoln has originated funds for a student who fails to arrive and enrol during the registration period. Any Title IV funds already received will be returned to the US Department of Education, and their systems updated to confirm that the student did not enrol or receive any funds. There will be no tuition fee liability for the student.
If there are any further queries or advice needed with regards to US Loans, then please email firstname.lastname@example.org.