Title IV Aid Withdrawal Policy

Return of Title IV Funds (R2T4)

If you withdraw from Vol State (officially or unofficially), the federal government requires us to review how much of your federal aid you “earned” based on the portion of the semester you attended.

This rule applies to:

  • Federal Pell Grant
  • Iraq & Afghanistan Service Grant
  • TEACH Grant
  • Federal Direct Loans (Subsidized/Unsubsidized)
  • Federal PLUS Loans (Parent)
  • Federal Supplemental Educational Opportunity Grant (FSEOG)

How Aid is Earned

  • Aid is earned based on the number of days you attended.
  • Example: If you completed 30% of the semester, you earned 30% of your aid.
  • If you complete more than 60% of the semester, you keep 100% of your aid.

What Happens if You Withdraw

  • If you earned less aid than was disbursed:
    • The school and/or you must return the extra (unearned) funds.
  • If you earned more aid than was disbursed:
    • You may be eligible for a post-withdrawal disbursement.
    • If this includes loans, you must give permission before the funds are released.

Note: Even if the school returns funds, you may still owe Vol State for unpaid charges. A balance will result in the Business Office placing a hold on your account 

Aid That Cannot Be Disbursed

Some funds cannot be released if other requirements are not met.

  • Example: First-time freshmen must complete 30 days of enrollment before Federal Direct Loan funds can be disbursed. If you withdraw before that, loan funds will not be released.

Example

Spring Semester:

  • Classes: Jan 12 – May 3
  • Withdrawal: Feb 1
  • Days attended: 21
  • Total semester days (minus 9-day Spring Break): 104
  • 21 ÷ 104 = 20.2%

You earned 20.2% of your federal aid. The rest must be returned.

Steps in the R2T4 Calculation

  1. Determine percentage of semester completed
    • Days attended ÷ Total semester days.
  2. Multiply by total federal aid
    • This = the amount of aid earned.
  3. Compare earned vs. disbursed
    • If disbursed > earned → some funds must be returned.
    • If disbursed < earned → you may qualify for a post-withdrawal disbursement.
  4. Split responsibility
    • The school returns a portion.
    • You may owe any remaining amount to the school.
  5. Funds are returned in order:
    • Federal Direct Unsubsidized Loan
    • Federal Direct Subsidized Loan
    • Federal Parent PLUS Loan
    • Federal Pell Grant
    • Iraq & Afghanistan Service Grant
    • FSEOG
    • TEACH Grant

Grant Overpayments

  • If you received more grant aid than earned, you may need to repay part of it.
  • Maximum repayment = half of the grant funds received.
  • No repayment required if the overpayment is $50 or less.

Withdrawal vs. Refund

The federal R2T4 calculation is separate from Vol State’s refund policy. You may still owe the school after funds are returned. Always speak with Advising before withdrawing.

✅ Key Takeaways

  • Aid is earned day by day.
  • Some funds cannot be released if other requirements are not met.