Return of Title IV Funds
The law specifies how the University of Arkansas at Pine Bluff (UAPB) must determine the amount of Federal Student Aid (Title IV) that a student earns if the student withdraws from school. The Title IV programs that are covered by this law and offered at UAPB are: Federal Pell Grants, Federal Supplemental Educational Opportunity Grants, William D. Ford Federal Direct Subsidized, Unsubsidized and PLUS Loans and TEACH Grant.
When a student withdraws, the amount of Title IV program assistance a student has earned up to that point is determined by a specific formula (R2T4 calculation). The institution must perform the R2T4 calculation to determine the amount of earned aid up to the 60 percent point in the semester. For example, if the student completed 30% of the semester, the student earned 30% of the assistance the student was scheduled to receive for that semester. Any unearned funds must be returned, and the student will owe a balance to UAPB.
The funds will be returned in the following order, up to the amount disbursed from each source:
- Federal Direct Unsubsidized Loan
- Federal Direct Subsidized Loan
- Federal Direct PLUS Loan
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant Program
- Federal TEACH Grant
A student who withdraws after the 60% point of the semester will have earned all funds for which he/she was entitled to receive for the period. UAPB, must still perform a R2T4 calculation to determine the amount of aid that the student has earned. If the student received, or UAPB, or the student’s parent received, on the student’s behalf) less assistance than the amount that the student earned, the student may be able to receive additional funds in a post-withdrawal disbursement of Title IV aid. If the student is eligible for a post-withdrawal disbursement of a loan, UAPB must send notification of post-withdrawal disbursement eligibility to the student within 30 calendar days after the student withdraws. Students will be given a minimum of 14 calendar days to respond to the post-withdrawal disbursement offer. UAPB will disburse any Title IV grant funds a student is due as part of a post-withdrawal disbursement within 45 calendar days of the date UAPB determined the student withdrew and disburse any loan funds a student accepts by the post withdrawal disbursement deadline within 180 calendar days of the withdrawal date. The student must give written permission to UAPB before loan funds can be disbursed.
UAPB must determine within 30 days from the date of determination that a student withdrew, whether any unearned funds are to be returned, or an additional disbursement is due to the student. The university has up to 45 days to return any unearned Title IV program funds to the appropriate federal account.