As a result of the Higher Education Act of 1998, a student who completely withdraws from classes may be required to pay a percentage of federal financial aid received. Additionally, withdrawing from classes can cause a student to lose financial aid (suspension) because of Satisfactory Academic Progress.

All students receiving federal financial aid who completely withdraw, officially or unofficially, are subject to the federal repayment law. Simply put, any federal financial aid recipient who withdraws within the first 60% of a payment period owes a portion of financial aid back to the federal government and a portion back to the school. This situation is called a Return of Title IV, or R2T4

R2T4 POLICY

The law specifies how your school must determine the amount of Title IV program assistance that you earn if you withdraw from school. The Title IV programs that are covered by this law are: Federal Pell Grants, Stafford Loans, PLUS Loans, Federal Supplemental Educational Opportunity Grants (FSEOGs), Federal Perkins Loans and in some cases, certain state grant aid (LEAP/SLEAP), GEAR UP grants, and SSS grants to students.

When the Financial Aid Office calculates the Return to Title IV calculation, we must use the last date of enrollment and/ or your last date of academic activity, as reported by your instructors, and recorded in the system to determine how much aid you have earned. This date determines how much, if anything, you must repay if you do not successfully complete any of your courses.

When you withdraw during your payment period the amount of Title IV program assistance that you have earned up to that point is determined by a specific formula. If you received (or your school or parents received on your behalf) less assistance than the amount that you earned, you may be able to receive those additional funds. If you received more assistance than you earned, the excess funds must be returned by the school and/or you. The amount of assistance that you have earned is determined on a pro rata basis. For example, if you completed 30% of your payment period, you earn 30% of the assistance you were originally scheduled to receive. Once you have completed more than 60% of the payment period or period of enrollment, you earn all the assistance that you were scheduled to receive for that period.

If you did not receive all the funds that you earned, you may be due a post-withdrawal disbursement. If the post-withdrawal disbursement includes loan funds, you may choose to decline the loan funds so that you don't incur additional debt. Your school may automatically use all or a portion of your post-withdrawal disbursement (including loan funds, if you accept them) for tuition, fees, and room and board charges (as contracted with the school). For all other school charges, the school needs your permission to use the post-withdrawal disbursement. If you do not give your permission, you will be offered the funds. However, it may be in your best interest to allow the school to keep the funds to reduce your debt at the school.

If a student earned more aid than was disbursed to him/her, the institution would owe the student a post-withdrawal disbursement. From the date the institution determined the student withdrew, funds must be paid within 45 days.

Return of Unearned Aid is allocated in the following order:

1. Unsubsidized Federal Stafford Loan

2. Subsidized Federal Stafford Loan

3. Federal Perkins Loan

4. Federal Parent (Plus) Loan

5. Federal Pell Grant

6. Federal Supplemental Opportunity Grant

7. Other Title IV Assistance

There are some Title IV funds that you were scheduled to receive that you cannot earn once you withdraw because of other eligibility requirements. For example, if you are a first-time, first-year undergraduate student and you have not completed the first 30 days of your program before you withdraw, you will not earn any FFEL or Direct loan funds that you would have received had you remained enrolled past the 30th day.

Title IV Future Professionals reentering within 180 days of withdrawal date will resume at the same status as prior to withdrawal.

Renaissance Beauty Academy’s withdrawal policies and refund policy can be found in our catalog.