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If the student receives less Title IV aid than the amount earned, the school must offer a disbursement of the earned aid that was not received. This is called a post-withdrawal disbursement (PWD).
R2T4 refers to the calculation required when a recipient of Title IV aid withdraws from an institution during a payment period/period of enrollment in which the recipient began attendance.
The Return of Title IV (R2T4) calculation is performed to determine the amount of federal funds the student has earned and the amount of unearned Federal funds for which the school and the student is responsible to return (if any).
The Federal Return of Title IV Funds procedure mandates that students who officially withdraw (drop all classes) or unofficially withdraw (stop attending without dropping all classes) may only keep the financial aid they have ?earned? up to the time of withdrawal.
After the 60% point in the payment period or period of enrollment, a student has earned 100% of the Title IV funds the student was scheduled to receive during the period. For a student who withdraws after the 60% point-in-time, there are no unearned funds.