Return of Title IV Funds (R2T4)
As a participant in federal financial aid programs under Title IV of the Higher Education Act of 1965, UT Permian Basin is required to comply with federal regulations regarding the return of unearned financial aid for students who withdraw or fail to complete their period of enrollment.
This policy applies to students who:
- Are attending UT Permian Basin for the first time, and
- Have received Title IV aid, including federal grants, loans, or work-study, or whose parents have received a Federal Direct PLUS Loan on their behalf
If a student withdraws or earns all failing grades before completing 60% of the enrollment period, the University must calculate the amount of unearned aid and return it to the appropriate federal programs. No return of funds is required if the student withdraws after 60% of the term has been completed.
Refund Calculation and Example
Students who withdraw before the 60% point may be eligible for a refund of tuition, fees, room and board, and other institutional charges. The refund will be the greater of:
- The amount calculated under Section 54.006 of the Texas Education Code, or
- A pro rata refund under Section 484B of the Higher Education Act, minus any unpaid charges and a reasonable administrative fee (not exceeding the lesser of 5% of total charges or $100)
If Title IV funds were used to pay institutional charges, a portion—or all—of the refund will be returned to the federal aid programs.
Example:
A student withdraws on the 32nd day of a 110-day semester. Tuition and fees total $2,754. The student received:
- $785 in Federal Direct Unsubsidized Loan
- $1,141 in Federal Direct Subsidized Loan
- $1,387 in Federal Pell Grant
The student completed 32/110 of the term, meaning they earned only that portion of their aid. Under the Return of Title IV Funds policy, $1,778 must be returned to the federal loan programs. This creates a balance owed to the University, while the remaining loan balance will be repaid under the terms of the loan’s Master Promissory Note.
For more information about withdrawal procedures and financial aid implications, contact the Office of Student Financial Aid or visit studentaid.gov.
As an institution participating in programs under Title IV of the Higher Education Act of 1965 as amended (hereinafter referred to as the "Act"), UT Permian Basin is required to refund unearned tuition, fees, room and board, and other charges to certain students attending the institution for the first time who have received a grant, a loan, or work assistance under Title IV of the Act, or whose parents have received a loan on their behalf under 20 U.S.C. Section 1087-2. The refund is required if the student withdraws from, or otherwise fails to complete the period of enrollment (i.e. receives all failing grades in the semester) for which the financial assistance was intended. No refund is required if the student withdraws after a point in time that is sixty percent of the period of enrollment for which the charges were assessed.
A student who withdraws prior to that time may be entitled to a refund of tuition, fees, room and board, and other charges that is the larger of the amount provided for in Section 54.006, Texas Education Code, or a pro rata refund calculated pursuant to Section 484B of the Act, reduced by the amount of any unpaid charges and a reasonable administrative fee not to exceed the lesser of five percent, or one hundred dollars. If the student charges were paid by Title IV funds, a portion or all of the refund will be returned to these programs.
For example, a student withdraws on the 32nd day of classes of a 110 calendar day semester. The tuition and fee charges totaled $2,754. The student was awarded and received the following financial aid: $785 Federal Direct Unsubsidized Loan, $1,1141 Federal Direct Subsidized Loan and $1,387 in Federal Pell Grant. The Return of Title IV Funds policy allows that the student "earned" 32/110 of the federal financial aid requiring the remainder to be returned to the federal aid programs. Under the policy, $1,778 would be returned to the Federal Direct Loan by UT Permian Basin creating a balance with the University. The remainder of the loan would be repaid under the terms of the promissory note.