Federal Return of Title IV Funds

Course-Based students who withdraw, drop, or do not otherwise complete all of the courses that they are scheduled to attend in the term and Tempo Learning® students who withdraw officially or unofficially, may have disbursed funds returned to the federal government. This includes students who stop engaging in academically related activities in any or all courses or competencies during the term or payment period.

Federal regulations established by the U.S. Department of Education require the Office of Financial Aid to apply a formula, entitled Return to Title IV (R2T4), to determine the percentage of federal financial aid a student has earned up through the last date of academically related activity in any or all courses or competencies during the term or payment period. Students withdrawing from any course(s) in the term or competencies prior to the completion of 60% of the quarter/semester or payment period may find that funds are owed to the university as a result of the R2T4.

The following enrollment changes in Course-Based Programs that may trigger an R2T4

  • Withdrawal to zero credits (official withdrawal through university policy).
  • Official Leave of Absence during the term.
  • Lack of engagement in academically related activities for at least 14 consecutive days in a term.
  • 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 within a term, failure to participate in more than 60% of the term, along with failure to earn a passing grade in the last course in the term, even after passing an earlier course.
  • 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.

The following enrollment changes in Tempo Learning® Programs that may trigger an R2T4

  • Official withdrawal from the program.
  • Administrative withdrawal due to lack of participation for thirty (30) consecutive days.
  • Administrative withdrawal for not submitting an academic plan by day fourteen (14) of the subscription period.
  • Administrative withdrawal for failure to meet the satisfactory academic progress requirements.
  • Failure to return from a Leave of Absence.

The last date of academically related activity, as determined by the university, is used as the financial aid withdrawal date to determine the completion percentage for R2T4. Students who complete more than 60% of the term or payment period are considered to have earned 100% of the federal financial aid disbursed to them for the term or payment period. Students who do not complete more than 60% of the term will have all or a portion of disbursed funds returned to the federal government.

The withdrawal date for federal financial aid purposes is not the same as the official withdrawal date processed by the Office of the Registrar to determine tuition adjustments. Federal student aid may not cover all charges due to the university that result from the return of funds upon the student’s withdrawal, and students may owe a balance to Walden.

Prior to withdrawing or making any enrollment changes, students should contact the Office of Financial Aid to determine if the change will result in a return of funds and to understand the financial options to get back on track for future terms.

Examples of Title IV Calculations

Example 1 Course-Based—Enrollment in Modules

Allyssa is an undergraduate student enrolled in the BS in Computer Information Systems program. Her fall term enrollment is from September 2 through November 23. She is enrolled in two back-to-back classes for the term. The first class is from September 2 through October 12. The second class is from October 13 through November 23. Allyssa successfully completes the first class but decides on October 15 to drop her second class.

Allyssa’s cost of attendance is as follows: Cost
Tuition $3100
Fees $120
Total $3220
Allyssa’s financial aid package consists of:
Federal Direct Subsidized Loan $1,154
Federal Direct Unsubsidized Loan $1,979
Total $3,133

Allyssa completed 42 days of the term (September 2 through October 12).

Walden is required to return the following:  
Federal Direct Subsidized Loan $0
Federal Direct Unsubsidized Loan $1,567
After returning the $1,567, Allyssa will owe Walden: $17

Allyssa received a tuition cancellation of $1,550 for dropping the class. After funds were returned to reduce her federal student loan, she had a balance of $17.

Example 2 Course-Based—Failing All Classes or the Last Class

Fred is a master’s degree student. His fall term is from September 2 through November 23. He is enrolled in two classes for the fall. The first class is from September 2 through October 12 and the second class begins September 6 and ends on November 23. Fred receives Fs in both classes. The latest day that Fred actively participated in either class was September 18.

Fred’s cost of attendance is as follows: Cost
Tuition $3100
Fees $120
Total $3220
Fred’s financial aid package consists of:
Federal Direct Unsubsidized Loan $6,800
Total $6,800

Fred completed 17 days of the term (September 2 through September 18).

Walden is required to return the following:  
Federal Direct Unsubsidized Loan $2,570
After returning the $2,570, Fred owes Walden $2,570

Example 3 Course-Based—Withdrawal from Term

Susie is a doctoral degree student in public policy. Her quarter term begins on December 1 and ends on February 22. On January 11, she stops participating while trying to decide if she will drop her classes. Susie makes the decision to drop all classes on January 15, but her last day of participation is January 11 (42 days into the term).

Susie’s cost of attendance is as follows: Cost
Tuition $4,550
Fees $160
Total $4,710
Susie’s financial aid package consists of:
Federal Direct Unsubsidized Loan $6,800
Total $6,800

As Susie 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:  
Federal Direct Unsubsidized Loan $3,400
After returning the $3,400, Susie will owe Walden: $1,190

Susie is not eligible to receive a tuition refund because she dropped her classes after the refund period. A bursar hold is placed on Susie’s account at the time the funds are returned to the government, which prevents Susie from registering for any additional classes and from receiving transcripts until she repays Walden what she owes.

Example 4 Course Based—Participation for More Than 60% of the Term

Ernie is a master’s degree student in the teaching program. His semester begins January 5 and ends April 26. On March 13 (68 days into the term), Ernie accepts a full-time job and drops his classes.

Ernie’s cost of attendance is as follows: Cost
Tuition $3,300
Fees $120
Total $3,420
Ernie’s financial aid package consists of:
Federal Direct Unsubsidized Loan $6,800
Total $6,800

Based on Ernie’s attendance (61% of the term), he has “earned” all of his financial aid for the term and will not have any funds returned.

Example 5 Tempo Learning® —Participation in a Payment Period for More Than 60% of the Term

Sam is a graduate student enrolled in the MS in Early Childhood Studies program beginning on July 6. His first payment period is from July 6 to January 3. He is required to complete 26 weeks (182 days) and 8.25 credits to progress to the next payment period. He completes 2.5 credit equivalencies before withdrawing on October 1. Sam’s last date of participation was September 30. He attended 87 days in the payment period. To determine the percentage of the payment period completed in the Tempo Learning® program, federal regulations require Walden to project how long it would have taken Sam to complete the additional 5.75 required credit equivalencies. Walden calculates a credit equivalency completion rate for Sam by dividing the days completed in the payment period by the credit equivalencies completed.

Walden then divides the 5.75 remaining credits in the payment period by the credit equivalency completion rate to project that it would take Sam 199 days to complete the 6 credits and adds 87 days completed for a total of 286 days in the projected payment period. Walden then divides 87 days completed in the payment period by 286 projected total days in the payment period to determine that Sam has completed 30.4% of the payment period. Tuition is calculated using the greater of federal aid used to pay charges and the projected tuition charges of Sam’s original payment period of 26 weeks which is determined by multiplying the number of weeks by a weekly tuition rate.

Sam’s cost of attendance is as follows: Cost
Projected Tuition $3,000
   
Sam’s financial aid package consists of:
Federal Direct Unsubsidized Net Loan Amount $10,142
Total $10,142

Sam completed 30.4% of the term

Walden Calculates the following:  
Earned Federal Aid $3,083
Unearned Federal Aid $1,988
Unearned Tuition Projected Tuition Charges $2,088
Amount of Federal Direct Unsubsidized Loan for Walden to Return $1,988

The R2T4 calculation requires the school to compare the amount of Unearned Federal Aid to the Unearned Tuition and return the lesser of the two to federal programs.

In Sam’s case, the R2T4 formula requires Walden to return $1,988 to the Federal Unsubsidized loan program. Prior to withdrawal, Sam had received half of his Federal Direct Unsubsidized Loan Disbursement. The second half of the disbursement was scheduled to disburse after he withdrew. Federal regulations dictate that Sam is no longer eligible for any portion of this disbursement.

Refund Policy for Minnesota GI Bill® Program (MN OHE GI Bill)

Minnesota GI Bill® (MGIB) financial aid recipients who do not complete the required MGIB period of instruction may not be entitled to keep the full amount of MGIB financial aid disbursed to them.

Do you have questions about financial aid? If you haven’t yet applied to Walden, please contact an enrollment advisor at 855-646-5286 in the United States. If you are a current student, please contact a financial aid advisor at finaid@mail.waldenu.edu or call 1-800-WALDENU (1-800-925-3368).

Man sitting at latop
Questions about paying for your education or limited-time savings options?
Questions about paying for your education or limited-time savings options?
We're here to help. Talk to your personal enrollment advisor for more information today. Please use our International Form if you live outside of the U.S.
We're here to help. Talk to your personal enrollment advisor for more information today. Please use our Domestic Form if you live in the U.S.
*Required Field
Academic Interests
Required
Required
Contact Information
Required
Required
Invalid email address
Please provide a valid phone number
Required
Please provide a valid zipcode
Required
Additional Information
Required
Get Started

By submitting this form, I understand and agree that Walden University may contact me via email, text, telephone, and prerecorded message regarding furthering my education and that calls may be generated using automated technology. You may opt out at any time. Please view our privacy policy or contact us for more details.

Required

By checking this box, I agree that Walden University may contact me by email, text message, autodialed telephone call, and prerecorded message at the contact information provided above regarding opportunities and offers to further my education. I understand that I may withdraw my consent at any time and that my consent is not a condition of any purchase. I have received the Walden University Privacy Policy