Reminder Regarding Return of Title IV Deadlines

At the 2015 NASFAA National Conference in New Orleans, Department of Education (ED) staff presented an in-depth review of the return of Title IV funds (R2T4) and programs offered in modules. In addition to providing definitions, frequent Q&As, and examples, the session provided helpful reminders regarding the deadlines associated with R2T4.

Although the regulations do not specify a deadline by which schools must perform a return calculation, institutions must perform the calculation in a timely manner to ensure compliance with related deadlines. These deadlines are detailed below.

Within 30 days of its determination a student withdrew, a school must notify:

  • The student of a grant overpayment; and
  • The student or parent borrower of the availability of a post-withdrawal disbursement of Title IV loan funds and request confirmation for disbursement.

Within 45 days of its determination a student withdrew, an institution must:

  • Return Title IV funds to the appropriate programs; and
  • Make a post-withdrawal disbursement of Title IV grant funds directly to a student.

Within 180 days of its determination a student withdrew, a school must make a post-withdrawal disbursement of:

  • Title IV loan funds (if confirmation received from the borrower); and
  • Title IV grant funds to a student’s account to pay outstanding charges.

Although schools are given a time frame of at least a month to complete the above actions, ED expects schools to complete them as soon as possible. To be in compliance, an institution should complete a return calculation within 30 days of its determination a student withdrew.

For highlights and summaries of key events and other sessions that were held at the 2015 National Conference in New Orleans, see our summaries page.

 

Publication Date: 8/4/2015


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