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National Student

Return of Title IV Funds (R2T4) Flowchart
Loan Program

1. Did student completely withdraw before completing Did student receive all failing grades due to unofficial withdrawal? If a
NO student who begins attendance doesn’t officially withdraw or fails to
the period?
earn a passing grade in at least one course over an entire period, the
institution must assume that the student unofficially withdrew unless
otherwise documented. The school can assume the mid-point as the
last date of attendance if no documentation is available. R2T4
calculations are not required if the student passed at least one class.

2. Has a previous credit balance refund been postponed until
NO No previous Title IV credit balance exists. Proceed to #3.
calculations are completed as directed in DCL GEN-04-03?

The date the student last attended class or an academically-
3. Has the student’s withdrawal date been determined? NO related activity must be determined. Proceed to #4.
Make calculations online at
4. Has the percentage of period completed been calculated? NO or any similar product that complies with federal requirements.
Proceed to #5.

5. Have the amounts “disbursed”, “could have been disbursed”, Regulations require schools to perform calculations within
and “amount earned” been calculated and any refunds been NO 30 days from the date the school determines the student
identified? withdrew. Proceed to #6.

6. Has any applicable refund policy (institutional, state, There are no other refund policies to consider. Proceed to #7.
accrediting agency, etc.) been calculated?


7. H
 ave funds been returned to the appropriate Title IV programs? Funds must be returned within 45 days of date of
This would include a previous Title IV credit balance which NO determination. Proceed to #8.
would pay for any grant overpayment that might exist.
YES If student is first-year, first-time borrower and attended longer
than the required first 30 days of the payment/enrollment
period, or if your school is exempt from the 30-day delay,
8. If required, has any appropriate post withdrawal NO proceed to #9. If student is first-year, first-time borrower
disbursement (PWD) been offered?1
and did not attend the required first 30 days of the payment/
YES enrollment period, no PWD is allowed. However, loan funds
may be considered in aid that “could have been disbursed”.
9. Prior to disbursement, have you explained the borrower’s Regulations require schools to contact students prior to
obligation to repay, confirmed the loan funds are still NO disbursement. Return to #9.
needed, and documented contact and final determination?


10. If required, has any appropriate Title IV grant overpayment
been referred to ED and the unresolved over-payment been Refer grant overpayment to ED, report overpayment to NSLDS,
reported to NSLDS as directed in 668.22? NO and proceed to #11.
P lease Note: If your school pays the overpayment on
behalf of the student, no official overpayment exists. 1
Disbursements made to students who have withdrawn from an institution are
YES referred to as “post withdrawal disbursements” (PWD).
Sources: Federal Register, November 1, 1999, p. 59019 34 CFR 668.22
(Dear Colleague Letter GEN-04-03)
11. Keep calculation for student record.
© 2007 NSLP Feb. 2007