Federal regulations require the Office of Financial Aid to apply a formula established by the U.S. Department of Education, entitled Return to Title IV (R2T4), to determine the amount of federal financial aid a student has earned as of the student’s withdrawal date. The amount of the federal financial aid returned to federal aid programs is determined by the amount of time a student spends in academically related activity.
Students withdrawing from any course(s) in the term prior to the completion of 60% of the quarter/semester may find that funds are owed to the university as a result of the R2T4.
Students who stop engaging in academically related activities during the term, without officially withdrawing from the courses, are subject to the R2T4 calculation. In such cases, the last date of academically related activity, as determined by the university, is used as the withdrawal date for the term. Other enrollment changes that may trigger an R2T4:
- Withdrawal to zero credits.
- For consecutive enrollment within a term, withdrawal from an earlier course with no confirmation of return in a later course.
- For consecutive enrollment within a term, dropping, not attending, or withdrawing from a later course, even after the completion of an earlier course.
- For consecutive enrollment, failure to participate in more than 60% of the term along with the failure to earn a passing grade in the last course in the term.
- Failure to participate in more than 60% of the term along with failure to earn a passing grade in all courses attempted in the term.
Prior to withdrawing, students should contact the Office of Financial Aid to determine the amount of federal aid that must be returned. Federal student aid may not cover all unpaid charges due to the university upon the student’s withdrawal.
Example: Title IV Calculation
A doctoral degree student begins a quarter term on December 6 that is scheduled to end on February 27. On January 16 (42 days into the term), she drops her classes.
Her cost of attendance is as follows:
| Tuition |
$4,550 |
| Fees |
$40 |
| Total |
$4,590 |
Her financial aid package consists of:
| Direct Subsidized Loan |
$3,980 |
| Direct Unsubsidized Loan |
$2,820 |
| Total |
$6,800 |
Amount refunded to student: $2,210
As the doctoral student has completed only 42 days of her semester, she earned 50% of the $6,800. According to the federally mandated calculation, 50% of the unearned portion of her aid, equaling $3,400, must be returned.
Walden is required to return the following:
| Direct Subsidized Loan |
$580 |
| Direct Unsubsidized Loan |
$2,820 |
After refunding the $3,400, the doctoral student will owe Walden: $1,190
The doctoral student is not eligible to receive a tuition refund because she dropped her classes after the refund period. A bursar hold is placed on her account, which prevents her from registering for any additional classes or from receiving transcripts until she repays the amount owed.
Do you have questions about financial aid? If you haven’t yet applied to Walden, please contact an enrollment advisor at 1-866-492-5336 in the United States. If you are a current student, please contact a financial aid advisor at finaid@waldenu.edu or call 1-800-WALDENU (1-800-925-3368).