Federal regulations require that if you withdraw from all your classes, a calculation must be performed (called Return to Title IV or R2T4) to determine how much of your aid must be returned to the government, and how much may be retained to pay for the charges you have incurred up to the point of your withdrawal.
NOTE: If you have been awarded federal aid, but withdraw before the first day of classes, 100% of any funds you received are returned to the federal government.
The Title IV programs that are covered by this law are:
- Federal Direct Unsubsidized Loan
- Federal Direct Subsidized Loan
- Federal Perkins Loan
- Federal PLUS Loan
- Federal Pell Grant
- Federal SEOG
- Federal Teach Grant
- Federal Iraq Afghanistan Service Grant
If a R2T4 calculation is done, aid is returned to the government in that order.
When you withdraw during the semester, the amount of Title IV financial aid that you have “earned” up to that point is determined by a specific formula. The amount of federal aid you earned is determined on a pro rata basis. For example, if you completed 30% of the semester, you earned 30% of the financial aid you were originally awarded for the term. Once you have completed more than 60% of the semester, you have earned all the financial aid (100%) that you were scheduled to receive for that term, and no aid has to be returned to the government.
The R2T4 policies govern only the amount of Federal Aid that must be returned in the case of a withdrawal. The amount of your actual charges (tuition, fees, etc.) is governed by separate rules. More information on what you will be charged in case of a withdrawal from all classes can be found on the Student Accounts web page at: www.ship.edu/Student_Accounts/Refund_Schedule/.
PA State Grants and Withdrawing from a Term
If received, the Pennsylvania State Grant award (PHEAA) will be adjusted based on Shippensburg University's policy of refund/reduction in tuition charges for a full University withdrawal or leave of absence for the term. For example, if you are withdrawing during the third week of the term at a 40% tuition charge you will only be eligible to keep 40% of your PA State Grant award for the term; if your State Grant award was $1,780 for the term you will only be eligible to keep $712 (1780 x .4) toward your charges for the term. The balance of your award for the term will be credited back to the Pennsylvania Higher Education Assistance Agency (PHEAA).
You should be aware that withdrawing from all courses during a term could have an effect on your Satisfactory Academic Progress. You should also be made aware that a return of funds to the federal government might create a balance due on your student account. You should check with the Student Accounts Office once your R2T4 has been processed and aid has been adjusted. You will receive a letter in the mail at your home address once your aid has been adjusted after your withdrawal. If you are considering withdrawing from all your classes you may want to make an appointment with a Financial Aid Counselor to discuss your situation prior to your withdrawal.