Pop Quiz – Has the Order of the Return of Title IV Funds Changed?
Scenario:
A school has begun processing return of Title IV funds (R2T4) calculations for students, but noticed a difference between the available R2T4 worksheets and the regulations. Has the order of the return of Title IV funds changed?
Answer:
Yes. In the Compiled Title IV Regulations you’ll notice 34 CFR 668.22(i) has been updated to reflect the current aid programs and eliminate those that are no longer applicable such as the Federal Perkins Loan, Academic Competitiveness Grants, and National SMART Grants.
Per the regulations, the following must be credited to outstanding balances for the payment period or period of enrollment if a return is required:
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Unsubsidized Federal Direct Stafford loans.
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Subsidized Federal Direct Stafford loans.
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Federal Direct PLUS received on behalf of the student.
If there are any remaining unearned funds to be returned after repayment of all outstanding loans, then the following grants must be returned:
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Iraq and Afghanistan Service Grants.
Publication Date: 8/19/2021
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