Return to Title IV (R2T4)

Process Overview and Applicability

The Yale University Financial Aid Office recalculates federal and institutional financial aid eligibility for any student who withdraws, drops, is administratively withdrawn, is considered unofficially withdrawn from the university prior to the end of a payment period, or who dies during the payment period if they have not reached 60% point in the payment period (the point at which a student is considered to have earned 100% of Title IV aid), completed at least half-time enrollment for the payment period, or satisfied all graduation requirements.

The Financial Aid Office performs a Return of Title IV (R2T4) calculation for all instances listed above to determine the earned and unearned portions of Federal Student Aid (FSA) as of the date the student withdraws. A prorated schedule is used to determine the amount of FSA funds the student has earned at the time of withdrawal. The R2T4 calculation determines the percentage of aid earned by the student based on the number of calendar days attended divided by the amount of calendar days in the student’s scheduled payment period as defined in the school bulletins, less any scheduled breaks. Additionally, institutional aid will be reviewed and recalculated in accordance with the institutional refund policy when appropriate.

Official Withdrawals

Students who wish to officially withdraw must contact their Residential College Dean and complete a Statement of Withdrawal Form. Upon a student’s withdrawal, notification is provided to the Financial Aid Office in writing regarding the students’ change in enrollment status. The withdrawal date is the date the student begins the official process, but the date of determination (DOD) is the date Yale becomes aware that the student intends to withdraw.

Unofficial Withdrawals

In unforeseen circumstances, when official notification is not received from the student or for students who withdraw without written notification, The last date of attendance will be determined from documentation of the last academically related activity. As Yale University is not required to take attendance, in the event that the last day of academic related activity cannot be determined, the midpoint of the term will be used. The date of determination must be no later than 30 days after the end of the payment period/term in which the student ceased attendance. If a student dies during the term/payment period, the date of withdrawal cannot be later than the date the student died.

Academically related activities include, but are not limited to: physically attending a class where there is an opportunity for direct interaction; submitting an academic assignment; taking an exam, an interactive tutorial, or computer-assisted instruction; attending a study group assigned by the institution; participating in an online discussion about academic matters; and initiating contact with a faculty member to ask a question about the academic subject studied.

Withdrawal Date Definitions

Withdrawal Date – Official Withdrawal
The withdrawal date for an official withdrawal is the date the student begins the school’s official withdrawal process or the date the student otherwise provides official notification of intent to withdraw.

Withdrawal Date – Unofficial Withdrawal
For a student who stops attending without notifying the institution, the withdrawal date is the last date of attendance at an academically related activity as documented by the institution. If a last date of attendance cannot be determined, the midpoint of the payment period will be used.

Yale University’s Leave of Absence Policy Yale University does not have a federal Title IV Leave of Absence policy that meets 34 CFR 668.22(d). Institutional leaves of absence do not meet the federal definition; therefore, for Title IV purposes, students on institutional leave are considered withdrawn, and an R2T4 calculation will be performed when applicable.

Scheduled Breaks

A student’s break of attendance is the time the student leaves to the time the student returns. Scheduled time off for students is defined as breaks that are at least five calendar days. Students may view the academic calendar in the published bulletin from their school.

F Grades

An R2T4 calculation is not required if a student successfully completed any of the registered courses in the term/payment period or earns a failing grade that represents academic engagement through the end of the payment period. If the failing grade represents non-attendance in all courses, the student may be treated as an unofficial withdrawal and an R2T4 calculation may be required.

Federal Student Aid Disbursed

The following federal FSA funds are reviewed in a R2T4 calculation:

Federal Direct Unsubsidized Loan
Federal Direct Subsidized Loan
Federal Direct Graduate PLUS Loan
Federal Direct Parent PLUS Loan
Federal Pell Grant
Federal Supplemental Educational Opportunity Grant (FSEOG)

Yale University does not participate in the TEACH Grant program.

Funds are considered to be disbursed when they have been applied to a student account prior to their withdrawal date. Any of the above funds that were not applied to a student account prior to their withdrawal and were scheduled to disburse within the term/payment period are considered funds that could have been disbursed. In the event that an R2T4 results in aid needing to be returned, the aid will be returned in the order listed above.

Graduating or Complete all Graduation Requirements

If a student completes all graduation requirements or graduates prior to the end of their payment period, no R2T4 is required.

Timeframe

Returns

After the return calculation is completed, the Financial Aid Office returns any unearned Title IV funds to its originator no later than 45 days from the date of determination, in accordance with 34 CFR 668.22(j).

Post-Withdrawal Disbursements

If the amount disbursed to the student is less than the amount the student earned, and for which the student is otherwise eligible, they are eligible to receive a post-withdrawal disbursement (PWD) of the earned aid that was not received. Federal Student Aid (FSA) grants will be reviewed first to fulfill the eligible PWD amounts as long as the disbursement can still be made within 180 days of the withdrawal and all other eligibility criteria are met. Grant funds are not subject to approval by the student. Students eligible for a post-withdrawal disbursement of Direct Loan funds will be notified by the Financial Aid Office of their eligibility within 30 days of their date of determination. The students’ account will be reviewed, and their estimated owing balance will also be included in the notification. The student must accept or deny (either a portion or in full) these funds within 30 days of DOD; failure to accept within the timeframe may result in cancellation of the aid. Funds will be disbursed within 45 days of the DOD. No disbursements will be made to the student’s account after 180 days after the DOD. Please note that if a student has already received one disbursement of loan funds in their loan period, they are not eligible for a post-withdrawal disbursement for additional loans. All loans must be originated prior to the student’s withdrawal. In the event that a student is eligible for a post-withdrawal disbursement in a prior academic year that has already been closed, the Financial Aid Office will reopen the year to ensure the student receives the disbursement of eligible grant funds as long as it occurs within the timeframe above. Students who die during the payment period are not eligible for a PWD.

Repayment of Student Loan Funds

At all times, students are responsible for repaying loan funds that they have earned. If an R2T4 calculation results in an overpayment/unearned aid, the Financial Aid Office will return the total percentage of federal loan funds it is responsible for. Additionally, the remaining percentage of federal loan funds that have not been earned and are not the responsibility of the school to return, must be repaid by the student. If a student dies while in attendance, an R2T4 calculation is required, and the institution must return the FSA funds for which it is responsible.

Loan Origination

If a student withdraws prior to the origination of their loans, then the loans cannot be included in the R2T4 calculation.

Institutional Charges

Institutional charges used in the R2T4 calculation are charges that were initially assessed during the term/payment period from which the student withdrew; these charges are generally paid directly to the University. In the event of a rate change, charges will be adjusted to reflect the change if it occurred prior to the withdrawal. The R2T4 calculation is performed prior to charges being reviewed for refund.

Only institutional charges allowed under 34 CFR 668.22(g)—tuition, fees, and institutionally contracted room and board—are included in the R2T4 calculation unless the student has provided a Title IV authorization permitting other educational charges to be included.

Institutional Refund Policy

For students who withdraw from the University, the refund schedule will be applied towards institutional charges. Please be aware that based on the refund calculations applied, a student is responsible for any outstanding charges owed to Yale University. All fees (Application Fee, Registration Fee, Add/Drop Fee, Course Lab Fees) are non-refundable. Refund Schedules can be found in the bulletin of each school.

Notifications

In accordance with 34 CFR 668.22(a)(5), the Financial Aid Office will notify a student, or a parent borrower in the case of a PLUS loan, within 30 days of the date of determination if they are eligible for a post-withdrawal disbursement of Direct Loan funds and will request confirmation before any loan funds are disbursed.

All students who are subject to an R2T4 calculation will receive written notification in the form of a revised award letter or post-withdrawal no response letter detailing their eligibility after all necessary funds are returned. This serves as notification to the student that the return calculation has been completed. Students who received any portion of Federal Direct Loans must complete Exit Loan Counseling.

Death of a Student

In the event a student dies during the payment period, the student’s estate is not required to return any FSA funds disbursed to the student. The University will not report an overpayment on a deceased student and will provide information to the student’s estate on how to discharge applicable student loans and remove overpayments. If a student dies during the term/payment period, the date of withdrawal cannot be later than the date the student died.

Calculation Triggers

R2T4 calculations are performed for any student who withdraws, drops, is administratively withdrawn, is considered unofficially withdrawn from the university prior to the end of a payment period, or who dies during the payment period if they have not reached 60% point in the payment period(the point at which a student is considered to have earned 100% of Title IV aid), completed at least half-time enrollment for the payment period, or satisfied all graduation requirements.

Formula Calculation

The FAO performs calculations using the FSA tool on COD. All calculations are completed using the payment period in which the student ceased attending. The period of time the student was enrolled is determined based on the number of calendar days attended divided by the amount of calendar days in the student’s scheduled payment period as defined in the course catalogue.

Institutional charges used in the R2T4 calculation are charges that were initially assessed during the payment period from which the student withdrew; these charges are generally paid directly to the university. In the event of a rate change, charges will be adjusted to reflect the change if it occurred prior to the withdrawal.

Funds are considered to be disbursed when they have been applied to a student account prior to or on the student’s withdrawal date. Any of the above funds that were not applied to a student account prior to the withdrawal data, and were scheduled to disburse within the payment period, are considered funds that could have been disbursed. For files selected by the Department of Education for Verification, the FAO confirms completion and receipt of corrections prior to any disbursements made. Only originated FSA loans prior to the LDA and grants associated with a finalized SAI will be used in the calculation. Inadvertent disbursements will be considered “could have been disbursed” for calculation purposes.