Has anyone heard of an R2T4 return of loan funds to Direct Lending after withdrawing from college? I also received a Debt Counseling brochure in the same e-mail. This is the first I have experienced this. The return of funds by the college to Direct Lending results in a $353 bill from the college. I was blindsided by this and am rather unwilling to pay it. Calling the college, Northcentral University, I was told to wait until my summary financial statement is finalized before doing anything. If the bill is correct, in any case, I was told that I could pay a 50% reduction ($176.50) to release the full debt to the college.Czuba, David - R2T4 Calc.pdf (36.3 KB)
Yes R2T4 is required by the Federal Loan program. You have to earn your financial aid by completing a certain percentage of the enrollment period (semester in a traditional program, certain credit amount in a non-standard program) to keep 100% of you aid. That used to be 60%. (I worked in financial aid for over 5 years, but haven’t been in that world for a number of years so specifics might have changed.) Definitely not a university rule though so assuming their calculation is correct the balance is yours.
Thank you Matthew. That’s useful information. I can at least contest the number of days from enrollment to withdrawal. Cheers.