Return of Title IV (R2T4)
This page explains how Massasoit recalculates federal and state financial aid when a student withdraws, including the Return of Title IV (R2T4) policy and the Massachusetts state refund calculation.
Title IV federal financial aid is awarded with the expectation that a student will attend and complete all scheduled coursework for the entire period for which the aid was provided. If a student withdraws, either officially or unofficially, before completing the courses they were scheduled to attend, their eligibility for federal aid must be recalculated. As a result, they may receive less aid than originally anticipated, or they may incur a balance owed to Massasoit based on the amount of aid the College was required to return to the federal programs.
Federal regulations require Massasoit to perform a Return of Title IV (R2T4) calculation to determine how much federal aid the student earned, based on the percentage of the payment period (typically a semester such as fall, spring, or summer) the student completed before withdrawing. For the purposes of this calculation, a recipient is defined as a student who either received federal financial aid or met the conditions to qualify for a late disbursement. For example, a student who withdraws in the second week of classes will have earned less aid than one who withdraws in the fifth week.
Once a student completes more than 60 percent of the payment period, they are considered to have earned 100 percent of their federal aid. In this case, a return calculation is not required unless eligible aid had not yet been disbursed. If any eligible aid remains undisbursed at the time of withdrawal, Massasoit will perform a return calculation to determine whether the student qualifies for a post-withdrawal disbursement.
Students who received more aid than they earned must repay the unearned portion. Massasoit will return the unearned amount to the appropriate federal programs on the student’s behalf and will bill the student for any resulting balance owed to the College. In addition, tuition, fees, and components of the Cost of Attendance may be adjusted if the student drops courses or withdraws before the census date.Refer to the Deadline and Refund Schedule and the Attendance & Withdrawal Information page for details.
When a federal financial aid recipient withdraws before completing the courses they were scheduled to attend, Massasoit is required to perform a Return of Title IV (R2T4) calculation. This process determines how much federal aid the student earned based on the percentage of the payment period completed prior to withdrawal.
If the student received more aid than they earned, the College must return the unearned portion to the appropriate federal programs. If the student earned more aid than was disbursed, they may be eligible to receive a post-withdrawal disbursement for the remaining amount.
A return calculation is not required if the student successfully completed more than 60 percent of the payment period and all federal aid for that period was disbursed. However, if any eligible aid remains undisbursed, Massasoit will perform a calculation to determine whether the student qualifies for a post-withdrawal disbursement.
A student is considered to have withdrawn from a payment period if any of the following conditions apply:
- The student does not complete all scheduled days in the payment period or period of enrollment. This includes any modular courses the student was scheduled to attend.
- The student is no longer enrolled in any courses that are eligible for Title IV aid, even if they remain enrolled in courses that are not eligible.
- The student does not earn at least one passing grade in any of their enrolled courses during the payment period. In the absence of documented academic activity, the student may be considered to have unofficially withdrawn.
- In a clock hour program, the student does not complete all scheduled clock hours and weeks of instructional time in the payment period or period of enrollment.
For students enrolled in modular courses, a student is not considered withdrawn if any of the following conditions are met:
- The student successfully completes one or more modules that together comprise at least 49% of the total number of countable days in the payment period or period of enrollment.
- The student successfully completes coursework equal to or greater than the College’s definition of half-time enrollment for the payment period.
- The student provides written confirmation that they intend to begin another Title IV-eligible course later in the same payment period, no later than 45 calendar days after the end of the module the student stopped attending.
If a student provides written confirmation but does not begin attendance in the future course as planned, they will be considered withdrawn and a return calculation will be required.
If a student officially withdraws from Massasoit, the withdrawal date used to determine federal financial aid eligibility will be the earliest of the following:
- The date the Registrar’s Office receives the student’s official withdrawal request
- The date the student notifies a Massasoit staff member acting in an official capacity of their intent to withdraw
- The last date the student demonstrated academic engagement in any course, as documented by the instructor. Academic engagement includes activities such as submitting an assignment, taking a quiz or exam, participating in a required discussion, or interacting with faculty on academic matters. Simply logging into an online course or attending class without active participation does not meet this definition.
Note: If a student withdraws during a scheduled break of five or more consecutive days, the College must use the last date the student was scheduled to attend prior to the break, unless there is a documented last date of academic engagement that occurred before that scheduled date.
For scheduled breaks that are fewer than five consecutive days, the withdrawal date is the date the student notifies the College of their intent to withdraw, even if that notification occurs during the break, unless there is a documented last date of academic engagement that occurred before the notification.
If a student unofficially withdraws by ceasing attendance in all courses without notifying the College, the withdrawal date will be the later of the following:
- The latest documented date of academic engagement in any course
- The midpoint of the payment period if no academic engagement can be documented
In cases where a student is unable to complete the withdrawal process due to circumstances beyond their control, such as a serious illness or emergency, Massasoit may use an earlier date that more accurately reflects when the student stopped attending. This exception must be supported by documentation and applied in accordance with federal regulations.
For more information, please refer to the Attendance and Withdrawal page.
The amount of federal financial aid a student earns is based on the percentage oThe amount of federal financial aid a student earns is based on the percentage of the payment period the student completed before withdrawing. This percentage is calculated by dividing the number of completed calendar days by the total number of calendar days in the payment period. Scheduled breaks of five or more consecutive days are excluded.
The completion percentage is multiplied by the total amount of Title IV aid disbursed and any aid that could have been disbursed. If the student withdraws after completing more than 60% of the payment period, they are considered to have earned all federal aid. If any eligible aid remains undisbursed, Massasoit will determine whether the student is entitled to a post-withdrawal disbursement.
In a Return of Title IV (R2T4) calculation, the total Title IV aid disbursed or that could have been disbursed is compared to the amount the student earned. The difference is the unearned portion that must be returned to the federal programs.
If the calculation results in funds the student must return, Massasoit will return the unearned amount on the student’s behalf and bill the student for any resulting balance.
Students will receive written notification within 30 days of the College’s determination of withdrawal if there are any changes to their financial aid eligibility. This will be provided in the form of a revised award letter.
Returned aid will be distributed in this order:
- Unsubsidized Federal Direct Loan
- Subsidized Federal Direct Loan
- Federal Direct PLUS Loan (Parent of a dependent student)
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant (FSEOG)
15.3% of aid earned × $1,800 disbursed = $275 Title IV aid earned
Aid to be returned is equal to the unearned percentage (100% minus the percent earned) multiplied by the amount of aid disbursed toward institutional charges.
(1.000 − 0.153) × $1,800 = $1,525 Title IV aid to be returned
All Title IV fund returns must be completed no later than 45 calendar days after the date the Financial Aid Office determines that the student withdrew.
When Title IV funds are returned, the student may owe a balance to the College.
During the second scheduled week of the fall semester, a student withdraws from both full-semester courses for which they were registered and had received financial aid. Per the Deadline and Refund Schedule, the student will receive a 50% refund of tuition and fees for these classes. Their financial aid will then be recalculated (per R2T4) based on their official withdrawal date, assuming the student began participation in the term, and the prorated financial aid award (including any post-withdrawal disbursement, if applicable) will be applied to their adjusted balance.
Original tuition and fees for two classes = $1,170
Original financial aid award = $1,480 (Federal Pell Grant)
Once the student withdraws, tuition and fees will be reduced to 50% of $1,170. The student’s financial aid eligibility will be recalculated to reflect the percentage of the payment period the student completed.
Final bill: $585 (50% of original charges) – $100 (8 completed days ÷ 118 total days in the payment period) = $485 balance due, which is the student’s responsibility
This is a hypothetical example. The number of days in the payment period will vary based on the academic calendar.
When the total amount of Title IV grant or loan assistance earned as of the withdrawal date is greater than the amount that was disbursed, the difference is considered a post-withdrawal disbursement.
If the post-withdrawal disbursement includes grant funds, the grant will first be applied to outstanding semester charges on the student’s account. This may include allowable charges such as tuition, fees, and book advance charges. Any remaining grant funds will be paid directly to the student.
If the post-withdrawal disbursement includes Direct Loan funds, Massasoit must obtain the student’s permission before disbursing them. In the case of a Direct PLUS Loan, permission must be obtained from the parent borrower. Notification of the opportunity to accept all or a portion of the loan disbursement will be sent within 30 days of the College’s determination of the student’s withdrawal.
If the student or parent responds within 14 days of the notification date, Massasoit will disburse the loan funds within 180 days of the withdrawal determination, provided all federal loan requirements have been completed. Loan funds will be applied first to outstanding allowable charges, such as tuition and fees. Any remaining loan funds will be paid directly to the student or parent.
If the student or parent does not respond within 14 days, the loan will be canceled. Subsequent requests to process the post-withdrawal loan disbursement will not be granted.
A student may be eligible for a late or post-withdrawal disbursement if:
- The U.S. Department of Education processed a FAFSA Submission Summary or Institutional Student Information Record (ISIR) with an official Student Aid Index (SAI) before the student became ineligible
And, in addition:
- For Direct Loans, the loan must have been originated before the student became ineligible
- For the Federal Supplemental Educational Opportunity Grant (FSEOG), the student must have been awarded the grant before becoming ineligible
However, a student may never receive a post-withdrawal disbursement of any Title IV funds that Massasoit was prohibited from disbursing on or before the withdrawal date. This includes the following situations:
- A second or subsequent disbursement of Direct Loan funds unless the student graduated or successfully completed the loan period
- A disbursement of Direct Loan funds for which the borrower did not sign a promissory note
- A disbursement of Direct Loan funds to a first-year, first-time borrower who withdrew before completing 30 days in the program of study
- A disbursement of a Federal Pell Grant for which the College did not have a valid FAFSA Submission Summary or ISIR by the federal deadline published annually by the Department of Education
- A first disbursement of a Direct Loan to a student enrolled in a modular program who withdrew before beginning attendance in enough courses to establish at least half-time enrollment status
Institutional charges are used to determine the portion of unearned Title IV aid that the College is responsible for returning. The institutional charges used in the Return of Title IV calculation typically reflect the charges that were initially assessed to the student for the entire payment period. Institutional charges include tuition, fees, and book advance charges.
Non-institutional charges are not included in the calculation.These may include health insurance, parking fines, library fines, and calculator rentals.
Initial institutional charges may only be adjusted based on changes made by the College prior to the student’s withdrawal. For example, charges may be adjusted due to a change in enrollment status that occurred before withdrawal. If the College reduces or eliminates institutional charges after the student withdraws, those changes do not affect the charges or the amount of aid earned in the R2T4 calculation.
An inadvertent overpayment occurs when federal financial aid funds are disbursed to a student who is no longer attending, but before the College has determined that the student has withdrawn. These funds are included in the Return of Title IV (R2T4) calculation as aid that could have been disbursed.
Only students who meet the criteria for a late disbursement are allowed to retain federal financial aid funds received as an inadvertent overpayment. If the student does not qualify for a late disbursement, the College must return the full amount of the inadvertent overpayment.
If the inadvertent overpayment qualifies as a late disbursement, the College will return only the unearned portion. This must be done within 45 calendar days of the College’s determination that the student withdrew. Unearned inadvertent overpayments are returned according to the same rules that apply to all unearned Title IV funds.
Massasoit Community College follows federal regulations when a student receiving Title IV aid withdraws. The following actions and deadlines apply based on the official date of determination of a student’s withdrawal:
| Requirement | Deadline |
|---|---|
| Perform Return of Title IV Funds (R2T4) calculation | Within 30 days |
| Notify student of post-withdrawal loan eligibility or grant overpayment | Within 30 days |
| Return unearned Title IV funds (school share) | Within 45 days |
| Disburse post-withdrawal grant funds | Within 45 days |
| Disburse post-withdrawal loan funds (if accepted within 14 days) | Within 180 days |
The date of determination is the point at which Massasoit becomes aware that the student has withdrawn. This varies based on the type of withdrawal:
- Official withdrawal: The date of determination is the same as the withdrawal date recorded by the Registrar’s Office.
- Unofficial withdrawal: The date of determination must occur no later than 30 calendar days after the end of the payment period (typically the end of the term).
- Unofficial withdrawals identified through participation review: The date of determination is the day the Registrar posts the withdrawal in the student information system.
- Unofficial withdrawals identified through end-of-term grade review: The date of determination is the final day of the term.
If Massasoit determines that a student has died during a period of enrollment, a Return of Title IV Funds (R2T4) calculation must still be performed. If the calculation indicates that the College is required to return federal funds, Massasoit will return the appropriate amount for which it is responsible.
The student’s estate is not required to return any Title IV funds disbursed directly to the student. Therefore, Massasoit will not report a grant overpayment for a deceased student to the National Student Loan Data System (NSLDS), nor will it refer the overpayment to Debt Resolution Services.
Federal regulations allow for the discharge of federal student loan debt in the event of a borrower’s death. This includes discharging a parent’s obligation to repay a Direct PLUS Loan if the student on whose behalf the loan was borrowed has died. If Massasoit is aware that a deceased student had outstanding federal loan debt, the College may contact the student’s estate with information about how to request a discharge of that debt.
If a Title IV credit balance remains after the completion of the Return calculation and any applicable institutional refund calculations, Massasoit will resolve the balance in one of the following ways:
- Apply the funds to any remaining institutional charges (including those that were previously paid but have become unpaid as a result of the return of Title IV funds), in accordance with federal cash management regulations
- Return any remaining funds to the appropriate Title IV programs
When a student withdraws, the Massachusetts Office of Student Financial Assistance (OSFA) requires colleges to perform a separate refund calculation for state financial aid. This calculation is based on the same percentage-of-completion formula used in the federal Return of Title IV Funds (R2T4) process.
Under OSFA guidelines, Massasoit may retain a portion of unearned state aid, but only up to the amount of unpaid tuition and mandatory fees that remain after all other aid has been applied. Any unearned state aid beyond that amount must be returned to the state.
Students are allowed to keep all state aid they have earned based on the percentage of the payment period completed.
Example:
A student is charged $3,400 in tuition and fees, receives $1,200 in Pell Grant and $3,000 in state grant funds, and withdraws halfway through the payment period.
Because the student completed 50% of the payment period, they earned $600 in Pell and $1,500 in state grant funds. The remaining charges are $1,300.
The school may apply $1,300 of the unearned state grant funds toward this balance. The remaining $200 in unearned state aid must be returned to the state.
For more information, refer to the annual OSFA Guidelines and Procedures.