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you’ll notice 34 CFR 668.22(i) has been updated to reflect the current aid programs and eliminate those that are no longer applicable such as the Federal Perkins Loan, Academic Competitiveness Grants, and National SMART Grants.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:
-
Unsubsidized Federal Direct Stafford loans.
-
Subsidized Federal Direct Stafford loans.
-
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:
-
Iraq and Afghanistan Service Grants.
Publication Date: 8/19/2021
Comments Disclaimer: NASFAA welcomes and encourages readers to comment and engage in respectful conversation about the content posted here. We value thoughtful, polite, and concise comments that reflect a variety of views. Comments are not moderated by NASFAA but are reviewed periodically by staff. Users should not expect real-time responses from NASFAA. To learn more, please view NASFAA’s complete Comments Policy.
Related Content
Return of Title IV Funds - April 2025
Return of Title IV Funds - September 2024
Return of Title IV Funds - April 2024
Return of Title IV Funds: 2024-25
ED Kicks Off Final Negotiated Rulemaking Session On R2T4 and Distance Education
Today's News for March 5, 2024
ED Continues Neg Reg Session With Discussion of Return to Title IV Funds and Accreditation
Today's News for February 8, 2024
ED Hosts Second Neg Reg Session Focusing on Cash Management
Today's News for February 6, 2024
Return of Title IV Funds Specialist Designation
How Do You Handle Census Dates and the Return Of Title IV Funds? (Award Year: 2024-25)
NASFAA 2023 – July 1 General Session
Return of Title IV Funds: 2023-24
Must a Student Accept a Post-Withdrawal Disbursement In Writing?
Are We Required To Have a Written Policy For Withdrawals and Return of Title IV Funds?
Pop Quiz - Is an R2T4 Calculation Required if the Student Withdraws After 60 Percent of the Term?
Can We Round Clock Hours Up When Determining If the Student Completed the Payment Period?
What Is the Midpoint For an Unofficial Withdrawal From a Program Offered In Modules?
White House Extends Coronavirus National Emergency
Pop Quiz - Must Students Who Fall Under the 49 Percent Exemption for R2T4 Receive Exit Counseling?
Which Is Best, an R2T4 Freeze Date or No R2T4 Freeze Date?
When Not Using an R2T4 Freeze Date, What Does "Eligible For" a Type Of Aid Mean?
Pop Quiz - What Is the Order of Return of Funds From a Stale Dated Check?
How Does a Long Break Between Modules Affect the 49% Calculation For R2T4?
Is R2T4 Required If a Student Earns an "F" In the Only Module In Which He Was Enrolled For the Term?
How Do We Determine the Number Of Countable Days For the 49% R2T4 Exemption?
For NSLDS Enrollment Reporting, How Do We Report a Student Who Qualifies For an R2T4 Exemption?
Advertisement
You must be logged in to comment on this page.