Return of Title IV Funds

The Federal Return of Title IV funds formula (also referred as R2T4) dictates the amount of Federal Title IV aid that must be returned to the federal government by Hartford Seminary or by the student.

Title IV funds are awarded based under the assumption the student will be in attendance for the entire loan period. If a student Withdraws from all classes or takes a Leave of Absence, he/she may be subject to the Federal Return of Title IV funds and the Hartford Seminary Institution Financial Aid may also be adjusted. The student may no longer be eligible for the full amount of financial aid that was originally scheduled to be received.

Since Hartford Seminary is not required to take attendance, the last date of attendance for students who officially withdraws is determined by the date the student provides notification or actually starts the withdrawal process. A student who withdraws without providing official notification must be determined within 30 days of the earliest of: (a) the end of the payment period: (b) the end of the academic year: or (c) the end of the student’s educational program. Students are required to meet with their instructor or advisor to request a withdrawal or a leave of absence.

The Financial Aid Coordinator is mandated by federal statute to recalculate federal financial aid eligibility of a recipient who withdraws, drops out, or is dismissed prior to completing 60% of a payment period. After the 60% point in the payment period, a student has earned 100% of federal funds and a refund is not required to be returned to the government. The school must still determine whether the student is eligible for a post-withdrawal disbursement.

Recalculation is derived by the percentage of earned aid following the R2T4 formula. The percentage of aid earned is equal to the number of days of the semester completed up to the withdrawal date divided by the total number of days in the semester.

The school must return the amount even if it didn’t keep the amount of the Title IV program funds. If Hartford Seminary is not required to return all of the excess funds, the student must return the remaining amount to the Unsubsidized Direct Stafford Loan Program.

Unearned aid must be returned to the appropriate federal program. When a student earns less aid than was disbursed, Hartford Seminary is required to return a portion of the funds that the student received. It is possible the student may end up owing Hartford Seminary. If a student receives less Title IV funds than the amount earned, the school will offer the student a disbursement of the earned aid that was not received at the time of the withdrawal. This is called a post withdrawal disbursement.   Any federal loan program funds due in a post withdrawal disbursement must be offered to the student and the school must receive the student’s permission before crediting their account.

The following rule applies when Hartford Seminary is completing a R2T4 calculation:

  1. Hartford Seminary must always return any unearned Title IV funds it is responsible for returning within 45 days of the date the school determined the student withdrew, and offer any post withdrawal disbursement of loan funds within 30 days of that date.


For further guidance on Title IV Refund’s (R2T4) policies and procedures found in  Volume 5 of the Federal Student Aid Handbook.  You may access a copy on line or in the Financial Aid Office.

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