Return of Title IV Funds

Title IV Refund Policy

The Financial Aid Office is required by federal regulations to recalculate federal financial aid eligibility for students who withdraws from all courses prior to completing more than 60% of the semester. Students who withdraw from all courses prior to completing more than 60% of the semester will have their financial aid eligibility recalculated based on the percentage of the semester completed and will be required to pay any unearned financial aid that may have been received in accordance with Return to Title IV guidelines. Student's who receive all W's, F's, FW's, EW's or a combination of W's, F's, FW's or EW's" are assumed to have completely withdrawn. 

Unofficial Withdrawals

If a student does not officially withdraw from all classes but fails to earn a passing grade in at least one course, federal aid regulations require that we assume the student has “unofficially withdrawn,” unless it can be documented that the student completed the enrollment period. Unofficial withdrawals require a Title IV refund calculation at the midpoint of the enrollment period. The reduction of federal aid may create a balance due to Saddleback College that must be repaid.

Title IV Refund Process

Financial aid recipients earn the aid originally received by remaining in the courses in which they were paid for. The amount of federal assistance earned is based on a pro-rated system in accordance with federal regulations, 34 CFR 668.22. Saddleback College is required to perform this calculation within 30 days of the date the school learns that a student has completely withdrawn. The school must return Title IV funds for which it is responsible within 45 days of the date of determination. The R2T4 calculation is completed automatically by the Financial Aid Office.


The following explains the formula used to determine the percentage of unearned aid to be returned to the federal government:


• 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 breaks in course attendance, based on the academic calendar, of 5 days or longer are not included in the total number of days for the payment period.


Institutional scholarship funds, Federal Work Study and Cal Grant funds are not subject to the R2T4 policy.

Title IV Refund Repayment Policy

A bill will be sent with the amount due. You will not be eligible for further student financial aid funds until the overpayment is paid in full. In addition, your school records will be placed on “HOLD.” You will not be able to register for classes or request your certificate or degree until this bill has been paid in full.

If you do not pay this bill or make payment arrangements, your overpayment will be reported to the National Student Loan Data System. NSLDS notifies all other colleges and universities that you now owe money. You will be ineligible to receive further financial aid, at any college. The NSLDS notification will be removed when your bill is paid in full.

If you continue to ignore this bill, your account will be turned over to the Department of Education for all future collection. The department of Education has the ability to garnish your wages, withhold your tax refunds, send your account to a collection agency, and take you to court to recover the money owed.

Our full Return to Title IV Policy is available here.