Refund Policy and Return to Title IV (R2T4)
For all students, the institutional charges, e.g., tuition and housing and food, will be prorated according to the amount of time the student spent in academic attendance before withdrawing from the Institute before the end of the sixth week of the term. These prorated charges will be compared to the payments received on behalf of the student, and the Institute will determine whether the student is entitled to a refund or owes additional funds to Caltech.
For students receiving funds from federal Title IV, from Caltech, and/or from state programs, the Institute will follow federal and other applicable regulations to determine the amount of all program funds the student has earned at the time of withdrawal. In general, the amount of financial aid earned is based on the amount of time the student has spent in academic attendance. If the amount of aid disbursed to the student is greater than the amount the student has earned, unearned funds must be returned. If the amount the student was disbursed is less than the amount the student earned, the student will be eligible to receive a post-withdrawal disbursement.
Post-withdrawal disbursements are required when a student has completed all necessary forms, was enrolled at time of disbursement or earned more Title IV aid than received. A student is entitled to receive their full aid eligibility based on the earned percentage. The institution has up to 45 days to disburse any grant funding to the student. If a post withdrawal disbursement is identified the student is notified via email by a Financial Aid staff member of their additional aid eligibility. Loans must be offered to the student within 30 days, allowing the student at least 14 days to respond. After 14 calendar days Caltech is not responsible for making any post-withdrawal loan disbursements.
All post-withdrawal disbursements are applied to the student account first, and any resulting credit balance on the student's account must be disbursed as soon as possible and no later than 14 days after the calculation of R2T4.
Determining the Student's Last Date of Attendance or Withdrawal Date
The Registrar's Office is responsible for obtaining requests for withdrawal from the undergraduate or graduate dean and for processing official withdrawals. In order to calculate the refund or repayment, Caltech will establish the student's withdrawal date. This date is one of the following:
- the date that the student began the withdrawal process prescribed by Caltech;
- the date the student otherwise provided notification to the Registrar's Office (written or oral) of their intent to withdraw;
- the midpoint of the academic term if no official notification is provided;
- the date determined by the registrar if there are special circumstances (illness, accident, grievous personal loss); or
- the date the registrar determines the student has not returned from an approved student sabbatical or if the student does not qualify for a sabbatical.
Academically Related Activities that Determine Academic Attendance
The Institute may use the last date of attendance at an academically related activity as the student's withdrawal date. This may occur if a student begins the withdrawal process and then attends an academically related activity after that date. Caltech considers an academically related activity to include the following:
- attendance at a lab
- attendance at a lecture
- completing a quiz and/or test
- participation in a study session
- turning in a class assignment
Activities excluded from being used in determining the last date of attendance include:
- logging in without participation
- academic counseling or advisement session
- participation in housing or meal plans
Determining the Return of Federal Funds
The Financial Aid Office will calculate the federal funds that must be returned to the appropriate federal accounts. If a student withdraws from the Institute prior to the first day of classes for the period of enrollment, Caltech will return 100 percent of the student's federal financial aid in accordance with federal procedures. If a student withdraws any time after the first day of classes for the period of enrollment, the Institute will perform the following:
- Determine the percentage of the payment period that the student completed. If the student completed more than 60 percent of the period, they earned 100 percent of the aid for the period. If the student completed 60 percent or less, the percentage of the period completed is the percentage of aid earned. This percentage is determined by dividing the number of days attended in the period of enrollment by the total days in the period.
- Apply the earned percentage to the amount of aid actually disbursed and the amount that could have been disbursed ("earned aid").
- Subtract earned aid from aid that was actually disbursed. This results in the amount of unearned aid to be returned.
- The Financial Aid Office will allocate the return of funds back to the student aid programs in the following order:
- Federal Direct Unsubsidized Stafford Loan Program
- Federal Direct Subsidized Stafford Loan Program
- Federal Direct PLUS Loan Program
- Federal Pell Grant Program
- Federal SEOG Program
- Other Title IV programs
* Federal Work Study is not included in any of these calculations.
R2T4 Formula Calculation
The following two sample R2T4 worksheets layout all the steps involved to calculate return to title IV aid:
Exceptions for R2T4 calculations:
- Continues to attend at least one Title IV-eligible class
- Did not receive, and is not eligible to receive, any Title IV aid
- Has only received, or is eligible to only receive, Federal Work-Study funds
Special Scenarios for R2T4 calculations
- Student Death: Caltech will perform an R2T4 calculation but will not make any post-withdrawal disbursements to the student's estate.
- Consortium Agreements: The institution that disburses Title IV funds is responsible for performing R2T4 and returning unearned funds.
- Re-entry: A student who re-enters the same program within 180 days retains eligibility for prior aid, including amounts returned under R2T4.
Appeals on Refunds
Any questions or problems related to refunds should be directed to the Bursar's Office. For further information on refunds and repayments, contact the Financial Aid Office or the Bursar's Office.