U.S. federal aid regulations mandate a Return to Title IV Funds (R2T4) calculation when a student receiving Title IV financial aid (US Direct Loans (subsidized and unsubsidized) or Parent PLUS loans) withdraws from the institution. If a student never attends, ceases enrollment, or withdraws from all courses in the semester and the student received U.S. federal financial aid, the college must determine if these funds are required to be returned to the US government within 45 days of the date of withdrawal.
The R2T4 calculation may result in a reduction of the student’s US federal loan(s) if the student attended less than 60 percent of the semester. The R2T4 calculation is based on the following:
- The number of days the student attended
- The number of days in the semester
- The institutional charges assessed
- The total amount of US Direct Loan aid awarded, accepted and/or disbursed.
As a result, Holland College and the student may be required to return any “unearned” US federal aid received. Holland College may be obligated to return funds on behalf of a student. If the amount of the loan funds returned exceed any existing credit on the student’s account, the student will owe the funds to Holland College. The student should make arrangements with Holland College’s Student Accounts Office to repay the outstanding amount to the College as soon as possible.
A letter from the International Office will be sent via email to the student indicating the type and amount of aid returned to the U.S. Department of Education on their behalf.
Funds returned to the U.S. Department of Education on behalf of a student are used to repay the current year’s loans in the following order:
- Unsubsidized US Direct Loan
- Subsidized US Direct Loan
- Parent PLUS for Undergraduate students