Must We Notify the Student If We Are Not Required To Return Unearned Funds From the R2T4 Calculation?

KA-34854 Helpfulness Rating 513 page views

No, there is no such notification requirement in the return of Title IV funds (R2T4) regulations at 34 CFR 668.22, the consumer information regulations at 668.43, or in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) itself. However, it would be a best practice to do so. If you do so, it might be appropriate to also explain the following from the May 15, 2020 Electronic Announcement:

"Upon receipt of information from an institution indicating that a covered student has withdrawn, the Department will cancel the entire amount of any disbursement of a Direct Loan borrowed by the student or his or her parent for the payment period or period of enrollment."

AskRegs Q&As represent NASFAA's understanding of regulatory and compliance issues. They are FOR INTERNAL USE ONLY. While NASFAA believes AskRegs Q&As are accurate and factual, they have not been reviewed or approved by the U.S. Department of Education (ED). If you should need written confirmation of AskRegs information for audit or program review purposes, please contact your ED School Participation Division. NASFAA shall not be liable for technical or editorial errors or omissions contained herein; nor for incidental or consequential damages resulting from the furnishing, performance, or use of this material.