Withdrawal and Return of Title IV Funds (R2T4) Policy

Federal Financial Aid (Title IV Funds) is awarded to a student under the assumption that the student will attend school for the entire period for which the aid is awarded. The term “Title IV Funds” refers to the Federal Financial Aid programs authorized under the Higher Education Act of 1965 (as amended) and includes the following programs:

  • Unsubsidized Stafford Loans
  • Subsidized Stafford Loans 
  • Federal Perkins Loans
  • Nursing Student Loans
  • Graduate and Parent PLUS Loans
  • Federal Pell Grant
  • Federal SEOG (Supplemental Educational Opportunity Grant)
  • TEACH Grant

If a recipient of Title IV funds withdraws or stops attending courses (including academic dismissal or expulsion) after beginning attendance for any reason he/she may no longer be eligible for the full amount of Title IV Funds.  A proration calculation is used to determine the amount of federal funds the student has earned based on the number of days in the enrollment period and the number of days the student actually attended.  If a student completes 60% or more of the semester they are considered to have earned all of their federal aid and will not be required to return any funds.

Federal law requires schools to calculate how much Federal Financial Aid a student has earned if that student withdraws in one of the following ways:

  • Completely withdraws
  • Stops attending before completing the semester
  • Receives all non-passing grades in a semester, including but not limited to F, XF, I, W, FNC, INC, WNC, NR, I/F


The University of Detroit Mercy tuition/fee refund policy is separate from the federal regulations to return unearned aid. Whether or not a student receives a tuition/fee refund has no bearing on the amount he/she must repay to the federal aid programs. Please see the tuition refund policy on the Student Accounting website.

Withdrawal Date

A student’s withdrawal date is the earlier date of the following:

  • The last date of academically-related activity provided on the drop slip or by the instructors (if the date is provided by the student it may be verified with the instructors).
  • The date the student informed UDM of their intention to withdraw.

For online courses just logging on to Blackboard does not signify academic activity. 

How the Earned Financial Aid is Calculated

Institutions are required to determine the percentage of Title IV aid ‘’earned” by the student and to return the unearned portion to the appropriate aid programs. Regulations require schools to perform calculations within 30 days from the date the school determines a student’s complete withdrawal. The school must return the funds within 45 days of the calculation.  A student has “earned” all of their aid if they complete 60% or more of the semester.

When the calculation is competed UDM will return the unearned portion of Title IV Funds that are requested from the school.  If there is a portion of unearned aid that the student is responsible for returning (via the R2T4 calculation) it is the student’s responsibility to make payment arrangements within 45 days of notification.  Failure to return funds as required can result in the loss of eligibility for future federal financial aid. A copy of the R2T4 calculation worksheet can be requested from the Financial Aid Office, in accordance with federal regulations.