How long does a college have to refund a credit balance from Title IV aid to a student after official withdrawal?

How long does a college have to refund a credit balance from Title IV aid to a student after official withdrawal?

• A. Within 14 days after the credit balance occurs
• B. Within 14 days after the R2T4 calculation is completed
• C. Within 14 days after any funds are returned as a result of the R2T4 calculation
• D. Within 14 days after the withdrawal notification

Answer: (B)

When a student withdraws, the college must perform a Return of Title IV Funds (R2T4) calculation to determine how much Title IV aid was earned and how much is unearned. The school then returns the unearned portion to the Title IV programs, and any remaining credit balance that should be refunded to the student is paid out. The key timing is that the refund of the student’s credit balance occurs within 14 days after the R2T4 calculation is completed. The calculation itself must be finished within 45 days of withdrawal, but the actual disbursement to the student happens in the 14-day window following that calculation. This is why the correct choice specifies 14 days after the R2T4 calculation is completed.

When a student withdraws, the college must perform a Return of Title IV Funds (R2T4) calculation to determine how much Title IV aid was earned and how much is unearned. The school then returns the unearned portion to the Title IV programs, and any remaining credit balance that should be refunded to the student is paid out. The key timing is that the refund of the student’s credit balance occurs within 14 days after the R2T4 calculation is completed. The calculation itself must be finished within 45 days of withdrawal, but the actual disbursement to the student happens in the 14-day window following that calculation. This is why the correct choice specifies 14 days after the R2T4 calculation is completed.