Withdrawals & Return of Title IV Funds (R2T4)

Federal student aid is awarded under the assumption that a student will attend and complete the entire semester/payment period for which the aid was awarded. When a student who received, or was eligible to receive, federal Title IV aid withdraws or otherwise ceases attendance before completing the semester, SUNY Downstate Health Sciences University must determine the amount of federal aid the student earned.

This process is called the Return of Title IV Funds (R2T4) calculation and is required by federal regulations under 34 CFR 668.22.

The R2T4 calculation is separate from SUNY Downstate's tuition refund policy. As a result, a student may owe a balance to the University after federal aid is adjusted or returned.

When Is a Student Considered Withdrawn?

For R2T4 purposes, a student is generally considered withdrawn when the student ceases attendance in all courses during the semester without completing the payment period.

A withdrawal may be:

• Official – when the student completes the University's established withdrawal process or officially notifies the University of the intent to withdraw.
• Unofficial – when the student ceases attendance without completing the University's official withdrawal process.

Dropping one or more courses while remaining enrolled and attending other courses is not considered a complete withdrawal for R2T4 purposes, although the change in enrollment may affect financial aid eligibility.

Determining the Withdrawal Date

SUNY Downstate is not an institution required to take attendance for purposes of the federal R2T4 regulations.

For an official withdrawal, the withdrawal date is generally the date the student begins the University's official withdrawal process or officially notifies the University of the intent to withdraw.

For an unofficial withdrawal, the withdrawal date is generally the midpoint (50%) of the semester/payment period.

The University may use a student's last date of attendance at an academically related activity when that date can be documented in accordance with federal requirements.

The Office of Financial Aid determines the appropriate withdrawal date based on the circumstances of the withdrawal and available University records.

Calculation of Earned Federal Aid

The percentage of Title IV aid earned is based on the number of calendar days the student completed during the semester/payment period.

Percentage Earned

Calendar Days Completed
÷ Total Calendar Days in the Semester/Payment Period
————————————
= Percentage of Title IV Aid Earned

Scheduled breaks of five or more consecutive days are excluded from the calculation.

If the student completes 60% or less of the semester/payment period, federal aid is earned proportionally.

If the student completes more than 60% of the semester/payment period, the student is considered to have earned 100% of the eligible Title IV aid for the period.

Title IV Aid to Be Returned

Total Title IV Aid Disbursed
– Title IV Aid Earned
————————————
= Unearned Title IV Aid 

The R2T4 calculation determines the amount of unearned aid that must be returned by the University and, when applicable, the student.

Return of Unearned Federal Aid

If the amount of Title IV aid disbursed exceeds the amount earned, the unearned portion must be returned to the appropriate federal student aid program.

SUNY Downstate must return Title IV funds for which the University is responsible within 45 days of the date the University determines that the student withdrew.

Returning federal student aid may create or increase a balance owed by the student to SUNY Downstate.

The following Federal Aid is included in the R2T4 calculation and returned in the following order:

1. Federal Direct Unsubsidized Loan
2. Federal Direct Subsidized Loan
3. Federal Graduate Plus Loan
4. Federal Parent Plus Loan
5. Federal Pell Grant
6. Iraq and Afghanistan Service Grant (IASG)
7. Federal Supplemental Educational Opportunity Grant (SEOG)

   **Federal Work-Study is NOT included in the R2T4 calculation, however you cannot continue to work under the Federal Work-Study Program after your date of withdrawal.**
   *Additional aid NOT considered in the calculation include: State Aid, Institutional Aid and Private Aid.*

   Calculations are done on a case-by-case basis after the withdrawal date is established

Post-Withdrawal Disbursement

If the R2T4 calculation determines that a student earned more Title IV aid than was disbursed before withdrawal, the student may be eligible for a Post-Withdrawal Disbursement (PWD).

The Office of Financial Aid will determine eligibility for a post-withdrawal disbursement in accordance with federal requirements.

If the post-withdrawal disbursement includes federal student loan funds, the student or, when applicable, the parent borrower will be notified and given the opportunity to accept or decline the loan funds as required by federal regulations.

Accepting these funds will increase the borrower's federal student loan debt and repayment obligation.

Federal Processing Timeframes

The University must generally:

• Complete the R2T4 calculation within 30 days of the date the University determines that the student withdrew.
• Return unearned Title IV funds for which the University is responsible within 45 days of the date the University determines that the student withdrew.

Additional federal deadlines apply to post-withdrawal disbursements and required borrower notifications.

R2T4 and the University's Tuition Refund Policy

The federal R2T4 calculation and SUNY Downstate's tuition refund policy are separate calculations.

The R2T4 calculation determines how much federal Title IV aid a student earned based on the portion of the semester completed.

The University's tuition refund policy determines the amount of tuition and other institutional charges for which the student remains responsible.

Because these calculations are separate, returning federal financial aid may result in a balance owed to SUNY Downstate even if the student previously had a zero balance or received a refund.

Before Withdrawing

Students considering withdrawal are strongly encouraged to contact the Office of Financial Aid before withdrawing to understand the potential impact on their financial aid.

Withdrawal may affect:

• Federal financial aid eligibility
• Student account balance
• Future financial aid eligibility
• Satisfactory Academic Progress
• Federal student loan grace periods and repayment
• Enrollment reporting

Federal Regulatory Reference

Return of Title IV Funds requirements are governed by Section 484B of the Higher Education Act and 34 CFR 668.22.