Laredo College Return to Title IV (R2T4) Policy

This policy ensures that Laredo College complies with federal regulations under 34 CFR 668.22 regarding the return of federal financial aid (Title IV) funds for students who withdraw from all classes before completing 60% of the term. Title IV programs include Federal Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), and other federal aid programs. This policy also adheres to guidelines outlined in Volume 5 of the 2024-2025 Federal Student Aid Handbook to ensure the proper handling of federal aid for students who withdraw from the college, protect both the institution and students from financial liabilities, and ensure transparency in the financial aid process.

When a student who is a recipient of Title IV federal aid withdraws from Laredo College, two distinct financial policies may be followed:

1. Laredo College Refund of Tuition and Fees Policy
   This policy outlines how refunds of institutional charges (such as tuition and fees) are handled when a student withdraws. It is managed by the Bursar’s Office and determines the amount of institutional charges that are refunded to the student based on the date of withdrawal. Refunds are processed according to a specific schedule that is independent of the financial aid calculation. The details of this policy, including the refund schedule, can be found on the Bursar's Office website.
2. U.S. Department of Education’s Return of Title IV Funds (R2T4) Policy
   This policy governs how unearned federal financial aid must be returned if a student withdraws from all classes before completing 60% of the term. The R2T4 process is distinct from the college's refund policy and is regulated under 34 CFR 668.22 and the 2024-2025 Federal Student Aid Handbook, Volume 5. It is managed by the Office of Financial Aid and determines the amount of federal aid the student has earned up to the withdrawal date. Any unearned portion must be returned to the U.S. Department of Education.

Withdrawal and Return of Title IV Funds

When a student receiving Title IV funds withdraws from all courses, the Office of Financial Aid calculates how much aid has been earned up to the point of withdrawal. The calculation is based on the number of days attended in the term divided by the total number of days in the term, excluding scheduled breaks of five days or more.

• If 60% or more of the term is completed, the student is considered to have earned 100% of the aid.
• If less than 60% of the term is completed, the unearned portion of the aid must be returned to the U.S. Department of Education.

Official vs. Unofficial Withdrawals

Official Withdrawals:
An official withdrawal occurs when the student notifies the college of the intent to withdraw by submitting ad submit an official withdrawal form to the Office of the Registrar. The date the college receives the withdrawal request serves as the official withdrawal date for calculating earned financial aid.

Unofficial Withdrawals:
If a student ceases to attend all classes but fails to officially withdraw, this is considered an unofficial withdrawal. In this case, the last date of attendance, as documented by faculty or other academic records, will be used to determine the withdrawal date. Students who stop attending classes but do not officially withdraw may receive failing grades (F_ or W) for non-attendance. The Return to Title IV calculation will still apply, and unearned aid must be returned.

Grades and Impact on Financial Aid

• Earned Grades: Students who complete courses and earn grades (A, B, C, D, or F) are not subject to Return of Title IV (R2T4) calculations, even if they fail the course.
• Unearned Grades: If a student receives all "W" (Withdraw) grades or fails all courses due to non-attendance, the student will be considered to have unofficially withdrawn. The Return to Title IV calculation will still apply, and unearned aid must be returned.

Return to Title IV Calculation (R2T4)

The Return to Title IV (R2T4) calculation determines the amount of federal aid that the student has earned up to the withdrawal date.

Laredo College is responsible for returning any unearned funds up to the total amount of aid disbursed for institutional charges.

The calculation formula is as follows: 

Percentage of Term Completed = Number of Days Attended ÷ Total Number of Days in Term (Excluding Breaks)

Student Resources

• For questions regarding Refund of Tuition and Fees, contact the Bursar’s Office at (956) 721-5112.
• For inquiries regarding the Return of Title IV Funds, contact the Office of Financial Aid at (956) 721-5361.