Return of Title IV (R2T4) Funds

As a result of the Higher Education Act of 1998, a student who completely withdraws from classes may be required to pay a percentage of federal financial aid received. Additionally, withdrawing from classes can cause a student to lose financial aid (suspension) because of Satisfactory Academic Progress.

All students receiving federal financial aid who completely withdraw, officially or unofficially, are subject to the federal repayment law. Simply put, any federal financial aid recipient who withdraws within the first 60% of a payment period owes a portion of financial aid back to the federal government and a portion back to the school. This situation is called a Return of Title IV, or R2T4

R2T4 Policy

The law specifies how your school must determine the amount of Title IV program assistance that you earn if you withdraw from school. The Title IV programs that are covered by this law are: Federal Pell Grants, Stafford Loans, PLUS Loans, Federal Supplemental Educational Opportunity Grants (FSEOGs), Federal Perkins Loans and in some cases, certain state grant aid (LEAP/SLEAP), GEAR UP grants, and SSS grants to students.

When the Financial Aid Office calculates the Return to Title IV calculation, we must use the last date of enrollment and/ or your last date of academic activity, as reported by your instructors, and recorded in the system to determine how much aid you have earned. This date determines how much, if anything, you must repay if you do not successfully complete any of your courses.

When you withdraw during your payment period the amount of Title IV program assistance that you have earned up to that point is determined by a specific formula. If you received (or your school or parents received on your behalf) less assistance than the amount that you earned, you may be able to receive those additional funds. If you received more assistance than you earned, the excess funds must be returned by the school and/or you. The amount of assistance that you have earned is determined on a pro rata basis. For example, if you completed 30% of your payment period, you earn 30% of the assistance you were originally scheduled to receive. Once you have completed more than 60% of the payment period or period of enrollment, you earn all the assistance that you were scheduled to receive for that period.

If you did not receive all the funds that you earned, you may be due a post-withdrawal disbursement. If the post-withdrawal disbursement includes loan funds, you may choose to decline the loan funds so that you don't incur additional debt. Your school may automatically use all or a portion of your post-withdrawal disbursement (including loan funds, if you accept them) for tuition, fees, and room and board charges (as contracted with the school). For all other school charges, the school needs your permission to use the post-withdrawal disbursement. If you do not give your permission, you will be offered the funds. However, it may be in your best interest to allow the school to keep the funds to reduce your debt at the school.

If a student earned more aid than was disbursed to him/her, the institution would owe the student a post-withdrawal disbursement. From the date the institution determined the student withdrew, funds must be paid within 45 days.

Return of Unearned Aid is allocated in the following order:

  1. Unsubsidized Federal Stafford Loan
  2. Subsidized Federal Stafford Loan
  3. Federal Perkins Loan
  4. Federal Parent (Plus) Loan
  5. Federal Pell Grant
  6. Federal Supplemental Opportunity Grant
  7. Other Title IV Assistance

There are some Title IV funds that you were scheduled to receive that you cannot earn once you withdraw because of other eligibility requirements. For example, if you are a first-time, first-year undergraduate student and you have not completed the first 30 days of your program before you withdraw, you will not earn any FFEL or Direct loan funds that you would have received had you remained enrolled past the 30th day.

Title IV Future Professionals reentering within 180 days of withdrawal date will resume at the same status as prior to withdrawal.


When a student withdraws from Summit Salon Academy, either officially or unofficially or is administratively withdrawn (dismissed) by the school, the Academy uses the student’s last day of attendance as the basis to compute any refund that may be due to the student or the amount of tuition and fees the student owes to the Academy.

The definitions of official, unofficial, and administrative withdrawals are provided below.

Types of Withdrawals

Official Withdrawals

In the event that a student decides to withdraw from the Academy and notifies the academy in writing, that withdrawal is considered an official withdrawal. Students may withdraw via email by contacting the Director of Education, Rahmlee Birch, at or the Director of Financial Aid, Kedar Gandhi, at The Director of Education and the Director of Financial Aid are the designated offices to contact about withdrawing from school, though withdrawing can affect your financial aid, too. The effective date of the withdrawal will be the date the student indicates or, if no date is stated, it will be the date the Academy receives the withdrawal request.

Unofficial Withdrawal

A student who fails to notify Summit Salon Academy of their intent to withdraw and stops attending classes is considered an unofficial withdrawal after being absent for fourteen consecutive days. The effective date of the drop is fourteen calendar days from the student’s last known date of attendance at any class, lab, or salon session.

Administrative Withdrawal

Any student who is dismissed from the program by the school for academic or disciplinary reasons is considered an administrative withdrawal. The effective date of the administrative withdrawal will be the date the student was dismissed.

No academic transcript or verification of studies will be provided for any student who has an outstanding debt to the Academy.


This Summit Salon Academy policy complies with any mandated state or federal policies related to enrollment cancellation. Any cancellation request by a student must be made in person or in writing.


This refund policy applies to all terminations for any reason, by either party, including student decision, course or program cancellation, or Academy closure. This policy complies with any mandated state or federal policies for each student. All refund calculations are performed, and refunds made in a timely manner.

If the student (or parent or guardian if the student is a minor) cancels the registration in person or in writing within three business days of the execution of this agreement, all monies paid herein, including the registration fee, shall be refunded by the Academy to the Student. This policy applies regardless of whether or not the student has actually started training.

Should the student be terminated or cancelled for any reason, all refunds will be made according to the following refund schedule:

  1. Cancellations must be made in person or by mail.
  2. All monies will be refunded if the academy does not accept the applicant or if the student cancels within three (3) business days after signing the Enrollment Agreement and making initial payment.
  3. Cancellation after the third (3rd) business day, but before the first class, will result in a refund of all monies paid, with the exception of the registration fee. NOTE: IF TEXTBOOK(S) AND THE SUPPLIES KIT WERE PURCHASED FROM SUMMIT SALON ACADEMY, USED BOOKS and/or OPENED KITS ARE NON-REFUNDABLE.
  4. Withdrawal after attendance has begun, but prior to 40% completion of the program, will result in a pro rata refund computed on the number of scheduled hours to the total program hours, with the exception of the registration fee and the books and kits fee. NOTE: USED BOOKS and/or OPENED KITS ARE NON-REFUNDABLE.
  5. Withdrawal after completing 40% of the program’s scheduled hours will result in no refund. After this point, students are responsible for the entire cost of the program.
  6. Termination Date: The termination date for refund computation purposes is the date the institution has determined that the student has withdrawn unless written notice has been received.
  7. All institutional refunds will be made within 30 days of termination or receipt of cancellation notice.
  8. A student can be dismissed, at the discretion of the Director and consistent with Academy policy, for insufficient progress, non-payment of costs, or for failure to comply with rules and policies established by the institution as outlined in its catalog and this agreement.
  9. Students who drop and are receiving veteran’s educational benefits shall be refunded their fees based on a pro-rata formula. (Hours remaining divided by Total Required Hours multiplied by the Tuition Charged). Note: USED BOOKS and/or OPENED KITS ARE NON-REFUNDABLE.
  10. All students should understand that once they have completed 40% of the scheduled hours of their academic program, they are financially obligated to the Academy for the full cost of the program.

Students who receive Title IV student financial aid must understand that even though they were awarded Title IV funds, they are only entitled to all of those funds if they complete at least 60% of the scheduled hours in each of the payment periods that the Title IV funds are requested for them by the Academy.

If the student completes less than 60% of the scheduled hours in the payment period, the Academy will perform a calculation required by the U.S. Department of Education to determine how much of the Title IV funding must be returned to the Department because the student did not earn the full amount. After this calculation, the Title IV-recipient may still owe and will be personally liable for any unpaid tuition and fees.