Return of Title IV Funds

What are Title IV Funds?

Title IV Funds are federal financial aid grant, work study, and loan funds in the following programs:

    • Unsubsidized Federal Direct Loan
    • Subsidized Federal Direct Loan
    • Perkins Loan
    • Graduate Plus Loan
    • Parent Plus Loan
    • Pell Grant
    • Federal Supplemental Educational Opportunity Grant (FSEOG)
    • Federal Work-Study (Federal Work-Study earnings are not affected by Title IV regulations concerning the return of unearned federal financial aid)

The Office of Student Financial Aid is required by the Higher Education Act of 1965, as amended in 1998, to determine the amount of financial aid that a student "earned" for an academic semester when the student does not complete at least one course within that semester. When the "earned" aid is less than the disbursed aid, the institution and student are responsible for returning the "unearned" disbursed funds to the appropriate agency.

What Students Need to Know About the Return of Title IV Funds

    • Any student who does not complete at least one course within an academic semester for which financial aid is received, or could have been received, will be reviewed for a Return of Title IV Funds calculation. This includes students who drop, officially or unofficially withdraw, are dismissed or take a leave of absence during a semester.
    • The Return of Title IV Funds is based on the premise that students "earn" financial aid for each calendar day that they attend classes. For example, if a student attends 32 days of a semester that is 80 calendar days in length, the student will have "earned" 40 percent of his or her aid.
    • Students who complete more than 60 percent of the semester are considered to have earned 100 percent of their financial aid.
    • The Return of Title IV Funds policy is separate from each college's refund policy. A student who withdraws from the semester may be required to return unearned Title IV financial aid funds and may still owe Texas A&M University-Kingsville for institutional charges. Please refer to your program's student handbook for your colleges' refund policy.
    • Return of Title IV Funds does not apply to federal work-study, scholarships, state grants such as the TEXAS Grant, or institutional awards. Please contact the Office of Student Financial Aid for more information on the consequences of dropping classes if you receive these types of financial aid.
    • If a student is required to return Title IV funds as a result of his or her drop, withdrawal, or dismissal, or is eligible for a late disbursement, the student will receive a letter from the Office of Student Financial Assistance along with a copy of the Return of Title IV Funds Calculation. The student should follow the instructions in the letter carefully to repay any funds due or to accept a late disbursement. Students with "unearned" financial aid funds must repay these funds to Texas A&M University-Kingsville, or set up a repayment agreement with Texas A&M University-Kingsville’s Business Office within 45 days of notification or they will lose eligibility for future Title IV aid and be subject to the student accounts receivable collection process.
    • Students who drop one or more of their classes may fail to maintain Satisfactory Academic Progress which may result in ineligibility for financial aid in the future. Please contact the Office of Student Financial Aid and speak to a financial aid officer before dropping a course.

Example of R2T4 Calculation

The Office of Student Financial Aid determines the percentage of Title IV, HEA aid the student earned by taking the calendar days completed in the period of enrollment and dividing by the total calendar days in the period of enrollment (excluding breaks of 5 days or more and days the student was on an approved leave of absence).

Example: 19 completed days 76 total days = 25% Title Aid Earned


The Financial Aid Office determines the dollar amount of Title IV, HEA aid the student earned by multiplying the percentage of Title IV, HEA aid earned by the total of the Title IV aid disbursed plus the Title IV, HEA aid that could have been disbursed for the period of enrollment.

Example: 25% x ($1800 disbursed) = $450.00 Aid Earned

If this percentage is greater than 60%, the student earns 100% of the disbursed Title IV, HEA funds or aid that could have been disbursed.


If this percentage is less than 60%, then the percentage earned is equal to the calculated dollar amount earned.


Funds are returned to the appropriate federal program based on the Percentage of Aid Earned and the Order of Return dictated by the ED.
Aid to be returned is equal to (100% minus the Percent earned) multiplied by the amount of aid disbursed toward institutional charges.

If a student earned less aid than was disbursed, the institution would be required to return a portion of the funds and the student may be required to
return a portion of the funds (Office of Student Financial Aid would return the student owed funds along with the funds that must be returned by Texas A&M University-Kingsville).

All Title IV, HEA fund returns must be completed no later than 45 calendar days after the date the Financial Aid Office determines that the student withdrew.
When Title IV, HEA funds are returned, the student may owe a balance to the institution.

Order of Return

Texas A&M University-Kingsville is authorized to return any excess funds after applying them to current outstanding Cost of Attendance (COA) charges. A copy of the Institutional R2T4 worksheet performed on the student’s behalf is available through the Financial Aid Office upon written request. In accordance with Federal regulations, when Title IV, HEA financial aid is involved, the calculated amount of the R2T4 funds is retracted in the following order:

    • Unsubsidized Federal Direct Stafford Loan Program
    • Subsidized Federal Direct Stafford Loan Program
    • Federal Direct Graduate PLUS Loan Program
    • Federal Direct Parent Loan Program (PLUS)
    • Federal Pell Grants
    • Federal Supplemental Educational Opportunity Grant Program
    • Iraq Afghanistan Service Grant