The Title IV programs include:
- Federal Pell Grants
- Iraq and Afghanistan Service Grants
- Direct Loans
- Direct PLUS Loans
- Federal Supplemental Educational Opportunity Grants (FSEOG)
Title IV funds are awarded to a student under the expectation that the student will attend classes for the whole term for which the assistance was awarded. When a student withdraws, the student may no longer be eligible for the full amount of the Title IV funds that the student was awarded and disbursed.
If a student received Title IV grants or loan funds and withdraws from a course or school after beginning attendance, the school will perform a Return to Title IV (R2T4) calculation to determine the amount of Title IV aid earned by the student. If the amount disbursed to the student is more than the amount the student earned, the funds that were unearned must be returned.
A student begins earning Title IV funds on the first day of attendance, even if a student withdraws before a school’s census date, the school must perform an R2T4 calculation using the number of days the student attended class. The school’s obligation is to include the R2T4 calculation in all forms of Title IV aid that were disbursed or that could have been disbursed, even if the student receives a full tuition refund.
Any amount of unearned grant funds that a student must return is called an overpayment.