🏫 College Advising

A student who received federal financial aid withdraws from college before completing 60% of the enrollment period. What is the primary implication regarding their federal financial aid?

A The student will automatically forfeit all federal financial aid for that enrollment period.
B The college must perform a Return of Title IV Funds (R2T4) calculation to determine how much aid must be returned.
C The student is only responsible for returning the portion of aid specifically designated for living expenses.
D The federal government will forgive the student's loans entirely due to early withdrawal.

✓ Correct Answer: Option B

Federal regulations mandate that institutions perform an R2T4 calculation if a student withdraws before completing 60% of the payment period. This determines the amount of unearned federal aid that must be returned.

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