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If you withdraw from your course you must inform Student Registry, your College, Department and your Servicer as soon as possible.

If a student who receives Title IV loans withdraws, takes a leave of absence for more than 180 days or drops below half time attendance, the University of Cambridge is required by US regulations to complete a Return to Title IV (R2T4) calculation and arrange for any ‘unearned’ loan funds to be returned to the US Dept. of Education. We will use worksheets provided by the US Dept. of Education to determine how much of the loan can be retained and how much is required to be returned. If it’s established that a return is required then it’s mandatory that our office arrange for any unearned loan funds to be returned within 45 days of the student’s date of withdrawal.

When considering US Federal loans the University is classed as an attendance taking institution.

The R2T4 calculation may result in a reduction of a student’s US federal loan(s) if the student attended 60% or less of a loan payment period. The R2T4 calculation is based on the following:

  • The number of days a student attended during a loan payment period
  • The number of days in the loan payment period
  • The institutional charges during the loan payment period
  • The total amount of US Direct Loan aid awarded and/or disbursed during a loan payment period

For the purposes of the R2T4 calculation, the withdrawal date is the last date of attendance at an academically related activity.

Scheduled breaks of five days or more AND days that a student was on an approved leave of absence are excluded from the RT24 calculation.

The day of withdrawal is counted as a completed day.

If a student intermits (takes a leave of absence) and doesn’t return this will be treated as a withdrawal and the date used will be the date the intermission began (the beginning of the leave of absence).

Unofficial withdrawals (withdrawals without notification) we will attempt to find out the last date of activity and may use a mid-point of a loan payment period where this information can’t be established.

If a student never attended, intermits (takes a leave of absence) for a period over 180 days during a loan payment period in which they are in receipt of federal loan funds, or withdraws during a loan payment period and is in receipt of federal loan funds, we are required to determine if any of the loan funds received are to be returned to the US Dept. of Education.

A student ‘earns’ aid on a daily basis and if a student withdraws any ‘unearned’ aid for that payment period will need to be returned to the US Dept. of Education. Once the calculation has been completed the student and their College will be informed of the amount to be returned. Arrangements will be put in place for the College to return any designated amount (via Western Union) to the student’s loan(s) with the US Dept. of Education. The student will be informed if any of the loan funds received are required to be repaid in accordance to the terms of their promissory note.

Loan funds returned to the US Dept. of Education on behalf of a student are used to repay the current year’s loans in the following order:

Federal Direct Unsubsidized loan

Federal Direct Subsidised loan 

Federal PLUS (Graduate or Parent) loan 

University of Cambridge Policy: Refunds of Fees

The amount of Title IV funds due for return as a result of a withdrawal is calculated independently of the tuition fee liability charged by the University.

For reference, the University Refund Policy is as follows, and is not to be confused with R2T4 calculations and refunds.

Should a student withdraw from their programme of study, they will only be entitled to a refund of fees paid if they have not yet reached the 21st day of the start of a ‘full term’.  Further information is in Withdrawing from the University’ .

The University will also inform NSLDS (National Student Loan Data System) of the withdrawal, which will trigger all loans going into repayment.

As a result of a R2T4 calculation a student may be required to pay back any ‘unearned’ US financial aid received. If the amount of the loan funds required to be returned exceeds any existing credit on the student account, the College a student is a member of may be obligated to return funds on behalf of the student. If this happens the student will owe the funds to their College. Arrangements will need to be made with their College to repay the outstanding balance as soon as possible.

Please refer to Withdrawing from the University’ for full information on withdrawing from the University of Cambridge.