Withdrawals & Return of Funds
While we hope it’s never necessary, we understand that life can sometimes present challenges, and you may need to withdraw early from your courses. If you have received financial aid and decided to withdraw, it’s important to understand its impact on your financial aid.
When you withdraw from courses, you may be required to return a portion of the financial aid you’ve received, as per federal regulations, HEA Section 484B, 485(a)(1)(F), 34 CFR 668.22. The Return of Title IV Funds policy determines the amount you must repay, which calculates how much financial aid you’ve "earned" based on the percentage of the semester you completed before withdrawing.
If you withdraw before completing more than 60% of the semester, you may be required to return some or all your federal financial aid.
Key Points:
- Financial Aid Adjustment: Financial aid is earned over the course of the semester. If you withdraw, your aid will be recalculated, and you may owe a portion of the funds back.
- Return of Funds: The funds you must return may be used to repay grants, loans, or other financial aid you received. If you owe a balance after the adjustment, you will be responsible for paying that balance to the university.
- Impact on Future Aid: Withdrawing may affect your eligibility for future financial aid, including scholarships, grants, and loans. This could also impact your Satisfactory Academic Progress (SAP) standing.
Frequently Asked Questions
Financial aid is awarded with the assumption that you will attend college for the entire duration of your enrollment. However, if you withdraw from courses or fail to complete all your classes during the term, you may only keep the financial aid you have “earned” up to the point of withdrawal. Any unearned aid must be returned, regardless of whether it has already been disbursed.
This process is known as the Return of Title IV Funds (R2T4) calculation. It can result in owing financial aid funds back to the university, the federal government, or both. Title IV funds include federal programs such as:
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- Teacher Education Assistance for College and Higher Education Grant (TEACH)
- Federal Direct Loans (both Subsidized and Unsubsidized loans)
- Federal Parent Loan for Undergraduate Students (PLUS)
- Federal Graduate PLUS Loan
The amount of financial aid you must return is based on how many days you have attended class during the semester. The more days you complete, the less financial aid you need to return. If you have completed more than 60% of the semester, you can keep 100% of the financial aid, even if you withdraw after that point.
If you are considering withdrawing, it is strongly recommended that you speak with our office. We can help you understand the potential financial aid implications and advise you on the best action.
Whether or not you owe a balance after withdrawing depends on several factors: the amount of financial aid you received, the date of your withdrawal (or your last date of attendance), and whether you are entitled to any refund of tuition and fees as outlined in the Academic Calendar for the semester.
If you receive financial aid and withdraw from all your courses at TAMIU or fail to attend any of your courses, you and/or TAMIU may be required to return some of the federal, state, and/or institutional funds you were awarded. The Financial Aid Office is responsible for calculating the percentage of unearned aid that must be returned, and this calculation will be completed within 45 days of your withdrawal.
Even if you receive a refund of tuition and fees, you may still owe TAMIU money once the unearned financial aid is returned. Refunds for tuition and fees are processed much sooner than the return of federal, state, or institutional financial aid funds, so it’s possible that you will first receive a refund for your tuition and fees and then owe a balance after the aid is returned. You should not cash any refund until you know your final balance.
If you’re enrolled in courses but stop attending all of them (an unofficial withdrawal), your Return of Title IV Funds (R2T4) calculation will not occur until after the semester ends and grades are posted. At that time, the Financial Aid Office will calculate the percentage of unearned aid and return the appropriate amount. Any resulting balance must be paid to TAMIU.
Return of Title IV (R2T4) Calculation for Federal Funds
TAMIU is required to return a portion of federal financial aid if a student withdraws from courses on or before completing 60% of the semester. Federal financial aid includes:
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- Teacher Education Assistance for College and Higher Education Grant (TEACH)
- Federal Direct Loans (subsidized and unsubsidized)
- Federal Direct Parent Loan (PLUS) for undergraduate students
- Federal PLUS Loan for graduate students
If you withdraw before completing 60% of the semester, TAMIU will return the unearned portion of your federal aid to the appropriate federal aid program on your behalf, which could result in a balance owed to the university. You must repay any balance owed before you can register for future semesters or pick up your diploma. Any federal loan amounts owed must be repaid under the terms outlined in your promissory note.
Order of Return of Funds
Federal funds will be returned in the following order, as required by federal regulations:
- Unsubsidized Federal Direct Stafford Loans
- Subsidized Federal Direct Stafford Loans
- Federal Grad PLUS Loans
- Federal PLUS Loans
- Federal Pell Grant
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- TEACH Grants
Example of Federal R2T4 Calculation
If you withdraw on the 16th day of class in a 104-day semester, and your total institutional charges are $5,093.39, and you received the following federal financial aid:
- $1,654 Pell Grant
- $1,732 Subsidized Direct Loan
The total number of days completed is 16 (out of 104 days), meaning you have completed 15.4% of the semester (16 ÷ 104 = 15.4%). This percentage reflects the portion of the federal aid you have earned. The remaining unearned aid will be returned to the appropriate federal programs.
Based on this calculation, the unearned aid would be returned, and $2,865 would need to be returned.
Please note that R2T4 calculations vary due to enrollment periods and scheduled breaks (ect. spring break). These factors can affect your R2T calculation.
Unofficial Withdrawal
An unofficial withdrawal occurs when you enroll for a semester but then stop attending all of your courses without formally withdrawing from the university. TAMIU reviews students' academic records at the end of each term to determine if they have unofficially withdrawn. If a student receives a combination of grades such as “F,” “NC,” “W,” or “FN”, they may be subject to the Return of Title IV Funds (R2T4) calculation and will be reviewed at the end of the semester.
To determine the last date of attendance or participation, the Financial Aid Office will contact your professors for documentation. This documentation may include proof of graded assignments, group project work, or any other relevant coursework completed. If professors can provide documentation showing the last date of attendance or when coursework was last completed, that date will be used to calculate the R2T4 and determine how much federal aid must be returned.
Please note that if a student receives a combination of the following grades: “F,” “NC,” “W,” or “FN,” the most recent date between the last date of attendance reported by the professor or the official withdrawal date will be used for the Return of Title IV Funds (R2T4) calculation.
If the student received all “F” and we cannot determine if this occurred before the 60% point of the semester, we will use the semester's midpoint as the withdrawal date and calculate the R2T4 based on 50% of the semester.
A student who officially withdraws from the University may request a refund on tuition and refundable fees according to the following schedule which is specified by Senate Bill 604 (passed by the 65th Legislature). To receive a refund of tuition and related charges, a student must drop a course by the deadline date according to the schedule below:
| Long Semesters | Summer Semesters |
|---|---|
| 100% prior to the first University class day | 100% prior to the first University class day |
| 80% during the first five University class days | 80% during the first, second or third University class day |
| 70% during the second five University class days | 50% during the fourth, fifth or sixth University class day |
| 50% during the third five University class days | No refunds during the seventh class day or thereafter |
| 25% during the fourth five University class days |
If you owe a balance due to the Return of Title IV Funds (R2T4) calculation, the Financial Aid Office will notify you via your TAMIU email address.
Yes, withdrawing from courses may affect your Satisfactory Academic Progress (SAP). Reviewing the requirements for maintaining SAP to ensure you remain eligible for financial aid in future semesters is important. Failure to meet these standards due to withdrawals or other factors may impact your continued financial aid eligibility.
Spring 2025
| Part of Term | Earned Aid Date |
| Full 16-Week Term | April 24, 2025 |
| First 7-Week Term (F71)* | February 27, 2025 |
| Second 7-Week Term (F72)* | May 01, 2025 |
*If you enroll in both 7-week terms the earned dates will vary based on the final grades and withdrawal dates.
Summer 2025 - TBA
Senator Judith Zaffirini Student Success Center (ZSC) 214
5201 University Blvd.
Laredo, TX 78041