Back to current
Shoptalk Online Contents

Shoptalk 114, February 2001

ED Releases RT4 Guidance

In December 2000, the Department of Education (ED) issued Dear Colleague Letter (DCL) GEN-00-24, the first in a series of guidance letters on the subject of Return of Title IV Funds (RT4). RT4 is the procedure by which a school must treat Title IV funds when a Title IV recipient withdraws from school without completing the payment period or period of enrollment.

The RT4 policy was added to federal regulations during the 1998 Reauthorization of the Higher Education Act of 1965. Schools were required to implement RT4 policy as of October 7, 2000.

GEN-00-24 was issued in a question and answer (Q&A) format and covers several subject categories pertaining to RT4 policy. These categories are as follows:

  • Applicability of the Return of Title IV Aid requirements when a student is not charged by the institution
  • Institutional charges
  • Withdrawals from standard term-based programs using modules
  • Withdrawal date-institutions that are not required to take attendance
  • Withdrawal date-institutions that are required to take attendance
  • Title IV aid that could have been disbursed
  • Period of enrollment example
  • Post-withdrawal disbursements
  • Percentage of Title IV aid earned
  • Return of funds

This DCL is labeled "Volume #1," so more letters on this subject are expected in the future. However, ED did not provide specifics about the number of letters to expect or the timeline for additional letters. To access GEN-00-24, visit the Information for Financial Aid Professionals website at under "Dear Partner (Colleague) Letters."

More Information and Questions
In October 2000, Texas Guaranteed (TG) posted guidance on the subject of RT4 on its website, TG Online, at under "New Federal Regulations." TG's guidance is also in a Q&A format and is entitled "Return of Title IV Funds Questions & Answers: Practical Issues."

If you have questions on the subject of RT4 that are not addressed in either ED's or TG's guidance, call TG's Customer Services at (800) 252-9743, ext. 4444 or send an message to

Back to Top

© 2009 Texas Guaranteed Student Loan Corporation