Hackensack Meridian School of Medicine | Nutley, NJ | Return of Title IV   

Return to Title IV Refund Policy (R2T4)

Students receiving Title IV federal financial aid, who terminate enrollment or stop attending all classes during a semester, may have their financial aid recalculated depending on when they withdraw. Students that withdraw from HMSOM any time up through the 60% point of the semester may be subject to having a portion of their federal financial aid returned by the school or the student. Students withdrawing after 60% of the semester are considered to have earned 100% of their federal financial aid.

If the student received more aid than the amount earned, the excess funds must be returned by the institution or the student. The amount of Title IV aid that an institution must return, or a student must repay is determined via the Federal Formula for Return of Title IV funds as specified in Section 484B of the Higher Education Act, which is a pro rata calculation. For example, if a student completes 30% of the semester, the student generally earns 30% of the Title IV federal financial aid. If the student receives excess federal student aid funds, the institution must return a portion of the excess equal to the lesser of:

  • The institutional charges multiplied by the unearned percentage of the student’s funds; or
  • The entire amount of excess funds.

Title IV

If the student receives less assistance than the amount that was earned, the student may be eligible to receive additional funds through a post-withdrawal disbursement. If the post withdrawal disbursement includes loan funds, the institution must obtain the student’s permission before it disburses any loan funds. A student may choose to decline some or all of the loan funds.

If the student is eligible for a post-withdrawal disbursement, HMSOM will offer the loan funds in writing to the student within 14 days. The student must notify the school of their interest in the loan funds in response to the written notice from HMSOM. If a return of loan funds is required, the school must return the funds to the Department of Education within 45 days of the calculation.

HMSOM may automatically use a portion or all of your post-withdrawal disbursement, including loan funds, if the student accepts them for outstanding charges. If a student’s federal aid exceeds the tuition and fees, creating a credit balance, a refund will be issued to the student. After the R2T4 calculation is completed, HMSOM will return the unearned portion of Title IV Funds that are requested from the school. If there is a portion of unearned aid that the student is responsible for returning according to the federal calculation it is the student’s responsibility to return the Direct Loan funds in accordance with the terms and conditions of the Master Promissory Note (MPN). This will be communicated to the student via letter mailed to the student. In addition, a copy of the R2T4 calculation worksheet will be sent to the student along with a final statement of their student account so that they may understand all adjustments to his or her account.

The law and the implementing regulations, 34 C.F.R. § 668.22, also specify the order of return of the Title IV funds to the programs from which they were awarded (i.e., Unsubsidized Federal Direct Stafford Loans, Federal Direct PLUS Loans). HMSOM will return any unearned Direct Loans within 45 days of the date of determination. If a student is responsible for returning any of his/her Direct Loans, the funds must be returned according to the terms and conditions of the Master Promissory Note (MPN).

To request an official withdrawal from the University, students must contact the Office of the Registrar or submit an official withdrawal form to the Office of the Registrar. Once processed, students will receive a written notification once their Return to Title IV calculation is completed. If a student withdraws without providing official notice, the student will be withdrawn no later than 30 days from the last day of the semester and the date of withdrawal will be the midpoint of the semester.

HMSOM will monitor uncompleted classes and final grades at the end at the semester. Any students determined to have been an unofficial withdrawal, the R2T4 will be calculated using the midpoint of the semester after the unofficial withdrawal has been determined.

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