When a student receives financial aid funds to attend school, the U.S. Department of Education assumes the student will complete the enrollment period for which they have received funding. If a student officially withdraws or unofficially withdraws (stops attending without formally notifying the school) they are subject to the U.S. Department of Education’s "Return to Title IV Policy" (R2T4).
The Financial Aid Office is required by federal regulation to calculate the amount of funding the student received compared to what the student actually "earned" based on the portion of the enrollment period the student completed. This calculation may result in a financial obligation for the student. Such financial obligations may include immediate repayment of student loan funds to their lender/bank, a balance owed to Prescott College, and/or a debt owed to the U.S. Department of Education.
Students who may consider withdrawing from school should consult their academic advisor for enrollment options and are strongly urged to contact the Financial Aid office to discuss potential financial ramifications. Upon withdraw, the financial aid counselor will complete the necessary calculations and notify the student in writing of any obligations within 45 days. The R2T4 policy is mandated by federal regulation and can not be appealed.
