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"Upon receipt of information from an institution indicating that a covered student has withdrawn, the Department will cancel the entire amount of any disbursement of a Direct Loan borrowed by the student or his or her parent for the payment period or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