Return to Title IV Funding (Federal)


Return to Title IV Funding

The Financial Aid Office is required by federal statute to recalculate federal financial aid eligibility for students who withdraw, drop out, or are dismissed. Prior to completing 60% of a payment period or term, the federal Title IV financial aid programs must be recalculated in these situations. Long Beach City College will use the date of complete withdrawal or drop to determine the amount of federal aid that is “earned” based on the amount of time the student was enrolled.

If a student leaves the institution prior to completing 60% of a payment period or term, the financial aid office recalculates eligibility for Title IV funds. Recalculation is based on the percentage of earned aid using the following Federal Return of Title IV funds formula: Percentage of payment period or term completed = the number of days completed up to the withdrawal date divided by the total days in the payment period or term. (Any break of five days or more is not counted as part of the days in the term.) This percentage is also the percentage of earned aid.


Return to Title IV (R2T4) Calculation of Federal Financial Aid Funds

Financial aid recipients earn federal aid originally received by remaining in the courses in which they were disbursed/paid for. The amount of federal assistance earned is based on a pro-rated system in accordance with federal regulations, 34 CFR 668.22. The Financial Aid Office is required to complete a Federal Return of Title IV funds (R2T4) calculation and notify a student of overpayment or eligibility for a Post Withdrawal Disbursement (PWD) within 30 days of the date the institution determines the student has completely withdrawn. The Financial Aid Office must return the student’s “unearned” funds to the Department of Education within 45 days.

If a student leaves the institution prior to completing 60% of a payment period or term, the Financial Aid Office calculates eligibility for Title IV funds. R2T4 Calculation is based on the percentage of “earned” aid using the following formula:


Number of Days Completed

Total Number of Days in the Payment Period/Semester

  • The percent earned is equal to the number of calendar days completed up to the withdrawal date divided by the total number of calendar days in the payment period.
  • The percent of unearned funds is equal to 100 percent minus the percent earned.
  • Scheduled break, based on LBCC’s academic calendar of five consecutive days or more is not counted as part of the total days for the payment period.

After the 60% mark in the payment period, a student is considered to have earned 100% of the Title IV funds they were scheduled to receive during the period, and will not have a payment obligation to LBCC.

New Withdrawal Exemptions for R2T4 Calculations (Modules only)

In guidance with federal regulations, LBCC’s Financial Aid Office will implement three new final rules for new exemptions to when a student is considered withdrawn for the sole purpose of R2T4 calculations (SPR 2022). An R2T4 calculation is not required even if a student ceases attendance without completing the payment period or period of enrollment, if:

  • They meet the requirements for graduation.
  • They have successfully completed 49% or more of the scheduled days of the period (for programs offered in modules only), or;
  • They have successfully completed the equivalent of half-time enrollment for the period (modules only).
Note: If an institution determines a student is exempt from the R2T4 calculation, Pell Grant recalculation rules apply (e.g., for any courses in which a student does not begin attendance).

Post Withdrawal Disbursement (PWD)

If a student did not receive all of their federal funds that they’ve earned, the student may be eligible for a PWD. LBCC may use all or a portion of a student’s PWD to offset any eligible, outstanding tuition and fees.

A Post Withdrawal Disbursement will be awarded within 180 days of the date LBCC determines that the student withdrew. The amount of a post-withdrawal disbursement is determined by a federally-mandated calculation.

Starting Fall 2019, Financial Aid will automatically award the PWD to a student’s account. Students will have 14 days from date of communication notification to decline their award.

Withdrawals and Return of Funds

The calculation for the R2T4 federal aid funds is based on whether a student’s withdrawal is classified as official or unofficial.

Official Withdrawal: An official withdrawal is when the student officially notifies the Financial Aid Office, and Admission and Records. This also includes withdrawals for medical reasons.

Unofficial Withdrawal: LBCC’s Financial Aid Office reviews posted grades at end of term. If a student does not successfully pass a class or earn at least one letter grade of A-D, P, and there is no record of academic activity they are determined to have unofficially withdrawn.

Per Federal R2T4 Regulations, Unofficial Withdrawals require a Title IV calculation at the 50% mark (midpoint) of the enrollment period. The reduction of federal aid may create a debit balance due to LBCC, and must be repaid within 30 days.

Note: Non-passing grades: F, W, EW, NP, MW (MW-exemption varies case by case)
Failure to Begin Attendance

If a student receives financial aid, and is considered a “No Show/Never attend” (Failure to attend any class meetings), will have a 100% institutional charge liability, where the debt is owed directly to Long Beach City College. A hold will be placed on the student’s record, prohibiting registration for future semesters until debt is paid in full.

Decrease of Units or Change of Enrollment

When a student decreases/reduces their course load, the decrease represents a change in enrollment status, and is not a complete withdrawal. Therefore, a R2T4 calculation is not required. However, the student’s Federal grants is subject to a recalculation and possible “Partial Attend” overpayment and institutional charge liability.

Late Start Classes/Session (Modules)

Late start classes (modules) are courses that do not span the entire length of a regular 16 week session/semester. If a student withdraws and does not attend their late start class, the Financial Aid Office considers this a complete withdrawal and is subject to a R2T4 and or Pell Recalculation. This includes and is not limited to if a student is enrolled in multiple late start sessions, or combination of regular 16 week session calculation/late start classes.

If at time of withdrawal of a late start session and the student will attend another late start session, this is not considered to be a complete withdrawal; However, Federal Regulations requires students to provide a written statement/confirmation of future attendance in a Title IV eligible course in the same semester or email the Financial Aid Office within 5 days that they will enroll in an upcoming late start session (34 CFR 668.22(a)(2)(ii)).

Title IV Refund Process

Funds are returned to the appropriate federal program based on the percentage of unearned aid using the following formula: Aid to be returned = (100% of the aid that could be disbursed minus the percentage of earned aid) multiplied by the total amount of aid that could have been disbursed during the payment period or term.

If a student earned less aid than was disbursed by the Financial Aid Office, the “unearned” portion of funds will be returned to the Department of Education. The institution must return the amount of Title IV funds no later than 45 days after the date of the determination of the date of the student’s complete withdrawal. Keep in mind that when Title IV funds are returned, the student may owe a debit balance to the institution.

If a student earned more aid than was disbursed to them, the institution would disburse the student a Post Withdrawal Disbursement which must be paid within 180 days of the student’s last date of withdrawal.

Refunds are allocated in the following order:

  1. Unsubsidized Direct Stafford Loans
  2. Subsidized Direct Stafford Loans
  3. Federal Direct PLUS Loans
  4. Federal Pell Grants for which a Return of funds is required
  5. Iraq & Afghanistan Service Grants
  6. All other Federal Grants for which a Return of funds is required (FSEOG)
  7. TEACH Grants

Title IV Refund Repayment Policy

Refund Policy

Refund Policy will not affect amount of Title IV aid that a student earns from R2T4.

Repayment Policy

  1. A bill will be sent within 30 days for a student who completely withdraws for the amount due. If the student has an overpayment, they will be notified of the amount and program of funds that are required to be repaid back to LBCC.
  2. The student will be given 45 days to repay the institutional charges liability debt owed to LBCC’s Cashiers Office. The student’s file will be placed on “hold” and not be eligible for further financial aid funds until the overpayment is paid in full. The student will be prohibited from registering for classes until this debt has been paid in full.
  3. If the debt goes unpaid after 45 days, and the student does not pay make payment arrangements, the overpayment can be reported/assigned to the National Student Loan Data System (NSLDS). NSLDS notifies all other colleges and universities that the student has an overpayment with LBCC. The student will be ineligible to receive further financial aid at any college. The Department of Education has the ability to garnish wages, withhold tax refunds, send the student’s account to a collection agency, and take the student to court to recover the money owed.
  4. The student can pay through their Viking Portal or at both Campuses in the Cashier’s Office.
  5. Once the overpayment is transferred and accepted by NSLDS/Direct Resolution Group (DRG), the student will need to contact DRG at 1-800-621- 3115 to resolve the transfer of the overpayment and request a “clearance letter” from DRG.

Institutional Charges

Institutional Charges/Fees include: enrollment fees, health fees, college service center/card, digital inclusive access, and material fees. It is a student’s responsibility to pay these fees to LBCC.

Type of Debt

Overpayment (OP)

A student may owe an overpayment for any of the following reasons:

  • Changes in enrollment status (Pell/FSEOG/Cal grant Recalculation)
  • Return of Title IV (R2T4)
  • Receive financial aid from another institution in the same semester as LBCC
  • Failure to submit required documentation
  • Human or system error
  • Expected Family Contribution (EFC) change
  • Failure to start courses (No Show/Never Attend)
  • Failure to provide Last Date of Activity
  • Enrollment in only non-financial aid eligible courses

Overaward (OA)

An overaward may occur when your awards exceed your need. While we make every attempt not to overaward a student when packaging aid, circumstances may change after the aid has been awarded and result in an overaward.