Financial Aid

Federal Student Aid Policy on Financial Aid Satisfactory Progress

PURPOSE:

The Higher Education Act of 1965, as amended, requires that students receiving federal student aid maintain a level of academic advancement which would enable them to complete their educational goals within a given period. Satisfactory academic progress standards must be established by each school and those standards must be applied to students receiving federal student aid.

BACKGROUND:

34 CFR668.34(a)(4)(5).

Federal regulations outline satisfactory academic progress as a set of qualitative and quantitative standards established by a school requiring its students to maintain an academic standing consistent with the school’s policy on progress toward graduation requirements. Students must meet both standards to remain eligible for Title IV aid. 

FEDERAL STUDENT AID POLICY:

Accountability:

Financial Aid & Scholarships Office

Applicability:

All registered students at CSU Channel Islands receiving financial aid assistance.

Definitions:

Appeal-A process by which a student who is not meeting SAP standards petitions the school for reconsideration of his eligibility for Federal Student Aid (FSA) funds.

Financial Aid Probation-A status a school assigns to a student who is failing to make satisfactory academic progress and who successfully appeals. Eligibility for aid may be reinstated for one payment period.

Financial Aid Warning-A status a school assigns to a student who is failing to make satisfactory academic progress. The school reinstates eligibility for aid for one payment period and may do so without a student appeal. This status may only be used by schools that check SAP at the end of each payment period and only for students who were meeting SAP in the prior payment period they were enrolled in or who were in the first payment period of their program.

Financial Aid Suspension - A status a school assigns to a student who is failing to make satisfactory academic progress who were on a financial aid warning in the prior payment period they were enrolled in. A student has the option to appeal this status.

Financial Aid Termination - A status a school assigns to a student is failing to make satisfactory academic progress who were in a prior payment period on financial aid probation and failed to meet the conditions of their appeal or who failed to appeal in a prior payment period and continued to fail to meet SAP standards. This status may also be assigned to students who appeal their SAP status and the appeal is denied. Student may regain good academic standing by meeting all SAP standards in a future payment period.

Maximum timeframe-

• For an undergraduate program measured in credit hours, a period no longer than 150 percent of the published length of the program.

• For a graduate program, a period the school defines that is based on the length of the program.

Note: Financial Aid Warning or Financial Aid Probation (relating to financial aid eligibility) is different from Academic Probation (relating to your overall academic standing with the University).

Text:

This policy meets the requirement for strictness as it matches the institutional policy for a student enrolled in the same educational program who is not receiving Title IV assistance.  The policy is organized in the following sections that illustrate the standards required to maintain good standing and satisfactory academic progress to retain Title IV funding:

• Quantitative Component-units completed
  • Pace - percent of units completed
  • Maximum unit limit
  • Treatment of Repeated Coursework
  • Treatment of Credit/Noncredit Coursework
  • Transfer Units
  • Change of Major - effect on unit load

• Qualitative Component-grading
  • Grading
  • Academic Disqualification
  • Remedial Coursework
• Evaluation of Academic Progress Over Time
  • Maximum Time Limit
• • Financial Aid Warning Period
  • Requirements to Re-establish Financial Aid Eligibility
  • Appeal Process
  • Reinstatement Rules following a SAP Appeal

SAP REVIEW CRITERIA

Any financial aid award is tentative until the academic record is reviewed.  For entering transfer students, the review is based on the academic record on file at the time of first consideration (or when information becomes available).

SECTION I: Quantitative Component

Academic Pace (i.e., percent of units completed):

Academic Pace is determined by calculating a student’s ratio of overall cumulative CI units earned to their cumulative units attempted.  The following schedule designates the minimum percentage of amount of work that a student must successfully complete at the end of each increment to complete his or her educational program within the maximum timeframe.  As a student progresses toward graduation, the expected ratio or percentage increases.

Maximum Unit Limit:
The maximum unit limit for undergraduate student aid eligibility is 150% of the unit requirement for graduation, as set forth by the Federal Department of Education and CI. Since most undergraduate majors at CI require 120 units to graduate, the maximum unit limit is therefore 180 attempted units (120 x 1.5 = 180). In addition, regulations require that all undergraduate transfer units MUST be considered in determining progress toward graduation within the 150% maximum time frame (regardless of whether or not the student received prior financial aid, completed the coursework, or if the course work counts or not toward their degree objective).The maximum unit limit for 2nd BA / BS student aid eligibility is 150% of the unit requirement for graduation, as set forth by the Federal Department of Education and CI. Since most undergraduate majors at CI require 120 units to graduate, and the student has already completed three years (approximately 90 units) of general education coursework, the maximum unit limit is therefore 45 attempted units (120 - 90 = 30 x 1.5 = 45). In addition, regulations require that all undergraduate transfer units MUST be considered in determining progress toward graduation within the 150% maximum time frame (regardless of whether or not the student received prior financial aid, completed the coursework, or if the course work counts or not toward their degree objective).

The maximum unit limit for post-baccalaureate Teacher Credential student aid eligibility is 150% of the unit requirement for graduation, as set forth by the Federal Department of Education and the CI. Since most Credential programs at CI require 35 units to graduate, the maximum unit limit is therefore 52.50 attempted units (35 x 1.5 = 52.50).  In addition, regulations require that all post-baccalaureate transfer units MUST be considered in determining progress toward graduation within the 150% maximum time frame (regardless of whether or not the student received prior financial aid, completed the coursework, or if the course work counts or not toward their degree objective).

The maximum unit limit for graduate aid eligibility is 150% of the unit requirement for graduation, as set forth by the Federal Department of Education and CI. Since most graduate programs at CI require 33 units to graduate, the maximum unit limit is therefore 49.50 attempted units (33 x 1.5 = 49.50).  In addition, regulations require that all graduate transfer units MUST be considered in determining progress toward graduation within the 150% maximum time frame (regardless of whether or not the student received prior financial aid, completed the coursework, or if the course work counts or not toward their degree objective).

Note: Maximum Unit limits for post-baccalaureate and graduate programs may be greater than those listed above if a student’s program(s) requires more than the typical unit requirement.

Treatment of Repeated Coursework:
You may count towards enrollment status and award Title IV funds to a student who is repeating, for the first time only (i.e. one repetition per class), a previously passed course in a term-based program. The regulatory definition for full-time enrollment status has been revised to allow a student to retake (one time only per previously passed course), any previously passed course. For this purpose, passed means any grade higher than an “F,” regardless of any school or program policy requiring a higher qualitative grade or measure to have been considered to have passed the course. This retaken class may be counted towards a student’s enrollment status and the student may be awarded Title IV aid for the enrollment status based on inclusion of the class. A student may be repeatedly paid for repeatedly failing the same course (normal SAP policy still applies to such cases). If a student withdraws before completing the course that they are being paid Title IV funds for retaking, then that is not counted as their one allowed retake for that course. However, if a student passed a class once and then is repaid for retaking it and fails the second time, that failure counts as their paid retake and the student may not be paid for retaking the class a third time.

If a student who received an incomplete in a course in the prior term is completing the coursework in the subsequent term to erase the incomplete in the prior term, the student is not considered to be enrolled in the course for the subsequent term. Therefore, the hours in the course do not count toward the student’s enrollment status for the subsequent term, and the student may not receive FSA funds for completing the course. However, if a student who received an incomplete in a course in the prior term is retaking the entire course for credit in the subsequent term, the hours in the course count toward the student’s enrollment status, and the student may receive FSA funds for retaking the course. In any case, remember that retaken classes may count against satisfactory academic progress, and the student’s eligibility is still constrained by all the requirements of satisfactory academic progress.

Transfer Units:
The government requires that all transfer units MUST be considered in determining progress toward graduation within a 150% maximum time frame.

Change of Major:
When considering a change in major, it is the responsibility of the student to be aware of the maximum unit limit guidelines, as outlined in this policy.

SECTION II: Qualitative Component: Acceptable Grade Point Average

All students must maintain a cumulative grade point average of 2.0 (overall “C” average) to maintain financial aid eligibility.  At the conclusion of the semester, the Financial Aid office will review the student’s academic record and determine if they are in good standing and therefore able to receive aid for the subsequent semester(s).

Students disqualified by the University are automatically ineligible for financial aid based on qualitative standards of not achieving a 2.0 (C average) grade point average.

Grading:
The quality of an aid recipient’s coursework is also monitored. Units are counted as earned only if one of the following grades is received: “A” through “D-“, Credit (CR), Satisfactory Progress (SP)

• The following grades are NOT counted as earned for satisfactory progress:
  • Incomplete (I)*
  • Incomplete Fail (IC)*
  • Withdrawal (W)**
  • Failure (F)
  • Unauthorized Incomplete (U)
  • Unauthorized Withdrawal (WU)
  • No Credit (NC)
  • Report Delayed (RD)
  • Audit (AU)

*Any student who was granted an incomplete “I” grade and failed to meet the conditions of the incomplete grade contract after one year, will be given a grade of “IC” which is equivalent to an “F” and will be assessed under the qualitative standards of the SAP policy.

**If a student has withdrawn from the university three times, this may demonstrate unwillingness or inability to progress.  In such cases, the Financial Aid staff may determine that a student is subject to a more extensive review by the Director of Financial Aid.  Aid will remain on hold until this review is completed.

Academic Disqualification:

Students who are academically disqualified from CI by the Records Office are not eligible for financial aid. 

Remedial Coursework:
CI does not consider up to 30 units remedial coursework in determining a student’s SAP.

 SECTION III:  Evaluation of Academic Progress over Time: Maximum Time Limit

The maximum time limit for undergraduate student aid eligibility is 150% of the normal length of time required to complete a program of study as a full-time equivalent student, as set forth by the Federal Department of Education and the CI. It will take 5 years to complete most undergraduate programs if a student is enrolled in only 12 units per term (120 units / 24 full-time units per year = 5 years). Thus, the maximum time limit is 7.5 years (150% * 5 years = 7.5 years).

The maximum time limit for 2nd BA / BS student aid eligibility is 150% of the normal length of time required to complete a program of study as a full-time equivalent student, as set forth by the Federal Department of Education and the CI. It will take 1.25 years to complete most 2nd BA / BS programs (since the student has already completed their general education coursework) if a student is enrolled in only 12 units per term (120 units - 90 GE units = 30 / 24 full-time units per year = 1.5 years). Thus, the maximum time limit is 2.25 years (150% * 1.5 years = 2.5 years).

The maximum time limit for post-baccalaureate Teacher Credential student aid eligibility is 150% of the normal length of time required to complete a program of study as a full-time equivalent student, as set forth by the Federal Department of Education and CI. It will take 1.5 years to complete most Credential programs if a student is enrolled in only 12 units per term (40 units / 24 full-time units per year = 1.66 years). Thus, the maximum time limit is 2.50 years (150% * 1.66 = 2.49 years).

The maximum time limit for graduate aid eligibility is 150% of the normal length of time required to complete a program of study as a full-time equivalent student, as set forth by the Federal Department of Education and CI. It will take 2 years to complete most Master’s programs if a student is enrolled in 12 units per term (51 units / 24 full-time units per year = 2.125 years). Thus, the maximum time limit is 3.0 years (150% * 2.125 = 3.18 years).  

Note: Maximum Time limits for Master’s students may be greater than those listed above if a student’s program(s) requires more than the typical 51 units. (i.e., MBA and Dual-Degree program).

SECTION IV: Consequences

Financial Aid Warning Period:

If a student does not meet the SAP policy guidelines, as stated above, they will be placed on Warning for the next term.  A student on financial aid Warning may continue to receive Title IV aid despite a determination that the student is not meeting SAP standards.  This will allow the student one payment period to regain good SAP standing, while continuing to receive financial aid.  If the student fails to meet the SAP policy guidelines after the Warning period, they will no longer be eligible to receive financial aid and will be placed on a Financial Aid Suspension status.

Requirements to Re-establish Financial Aid Eligibility:

Students who have lost their financial aid eligibility due to insufficient Percentage of Units Earned, or low GPA, and do not appeal, or their appeal is denied, may generally reestablish eligibility as follows:

• GPA: The qualitative requirement (i.e., CI cumulative GPA) is associated with all attempted units inclusive of CI and transfer/previous coursework.
• Units: The quantitative requirement (i.e., cumulative vs. attempted units) may be re-established either:
  1. Permanently (i.e., regain eligibility form this point forward, pending any future unit deficiencies) by completing the total number of units needed to increase your Pace to an acceptable range for your appropriate grade level without receiving financial aid. Deficient units may be completed at CI, or they may be completed through CI Extended University, if the coursework is transferable and satisfies your CI graduation requirements; or,
  2. Temporarily (i.e., regain eligibility on a term-by-term basis for the remainder of the academic year.It is the student’s responsibility to meet the reinstatement requirements, provide academic transcripts for transfer units to the CI Admissions & Records Office (AR), and to provide proof of completed units to the financial aid office.

Appeal Process:

If the student has mitigating factors that have hindered their Satisfactory Academic Progress (SAP) toward graduation, including death of a relative, injury or illness of the student, or other special circumstances, they may submit a SAP Appeal. If the Appeal is approved, a student’s financial aid eligibility may be re-instated.

After being notified by the financial aid office student has 30 days to submit an appeal.  The appeal must specify why the student failed to maintain SAP and what has changed to allow them to maintain or progress toward making SAP in the future. 

SAP Appeals are reviewed by the Director of Financial Aid & Scholarships and are determined on a case-by-case basis. The criteria for approving an appeal will be based on the student’s circumstance, documentation, and a reasonable expectation that the student can reestablish progress toward a degree objective, and regain academic standing that meets the requirements for graduation.

The Director of Financial Aid & Scholarships will render a decision and notify the student within 30 business days of receipt of the appeal documentation.  If a student’s appeal is granted, s/he will be placed on Financial Aid Probation for a semester and granted one semester of financial aid eligibility. At the end of the semester, his/her academic record is re-evaluated to determine if he/she are off of probation and found to be in good standing. 

If the student’s Petition is denied by the Director of Financial Aid & Scholarships, the student may either:

1. continue enrollment and make payment arrangements with the Student Business Services Office; or
2. withdraw and submit required documents to corresponding departments as delineated in the withdrawal policy.

Financial Aid Funding/ Reinstatement Rules following a SAP Appeal:

A student cannot be paid for any payment period in which an academic progress standard was not met.  If a student fails to meet SAP policy at the beginning of an academic year but meets it later by evidence of sufficient documentation, the following rule applies:

For Federal, State, campus-based, aid types may be paid only for the payment period in which he/she regains progress. No retroactive disbursements are allowed.

Federal Student Aid Policy on Return of Title IV Funds

PURPOSE:

Students who withdraw from the university and who have received financial aid assistance must have a Return to Title IV funds calculation completed to determine the source and funding amount that must be returned back to the awarding agency.

BACKGROUND:

This policy is required by Department of Education regulation.

• Source: Federal Student Aid Handbook
• Policy No: HEA, Section 484B 34 CFR 668.22

POLICY:

Accountability:

Financial Aid & Scholarships Office

Applicability:

All registered students at CSU Channel Islands receiving financial aid assistance.

Text:

Treatment of Title IV Aid When a Student Withdraws

When a student completely withdraws from the University, the Financial Aid & Scholarships office determines the percentage of Title IV funds to be returned and informs the Student Business Services (SBS) office. Institutions are required to determine the percentage of Title IV aid “earned” by the student and to return the unearned portion to the appropriate aid program. This percentage is determined by the percentage of the enrollment period completed by the student, as outlined below.

• Determine the percentage of the enrollment period completed by the student.

Days Completed ÷ Days in Enrollment Period = Percentage Completed

If the calculated percentage exceeds 60%, then the student has “earned” all Title IV aid for the enrollment period.

• Apply the percentage completed to the Title IV aid awarded to determine the student’s eligibility for aid prior to the withdrawal.

Total Aid Disbursed x Percentage Completed = Earned Aid

• Determine the amount of unearned aid to be returned to the appropriate Title IV aid program.

Total Disbursed Aid - Earned Aid = Unearned Aid to be Returned

If the aid already disbursed equals the earned aid, no further action is required. If the aid already disbursed is less than the earned aid, a late disbursement will be made to the student. If the aid already disbursed is greater than the earned aid, the difference must be returned to the appropriate Title IV aid program.

• Distribute the responsibility to return funds between the institution and the student.

The Financial Aid & Scholarships office will follow Federal regulations to determine the proportions of aid disbursed that must be returned by the institution and by the student. Both loan and grant funds must be returned. The amount of aid the student is responsible for returning will be reflected on the students account. Any refund or repayment obligation will be clearly outlined for the student in an email and will appear on the student account.

• Return the Title IV aid, based on the type of aid disbursed, in the following order:

1. Federal Unsubsidized Direct Loan
2. Federal (Subsidized) Direct Loan
3. Federal Perkins Loan - CI does not participate in this program.
4. Federal Direct PLUS Loan (Parent and Graduate PLUS)
5. Federal Pell Grant
6. Federal Supplemental Educational Opportunity Grants (FSEOG)
   1. TEACH Grant
7. Iraq and Afghanistan Service Grant

EXAMPLE:

Example regarding the application of the Return of Title IV Funds policy:

The following is provided as an illustration of how the amount of earned and unearned aid is calculated by the CI Financial Aid & Scholarships Office, as required by Federal regulation.

Example:

 A student receives the following financial aid:

Subsidized Direct Loan:    $1,732

Federal Pell Grant:            $2,748

Total Aid:                          $4,480.00

Less Institutional Charges: $3,228

Student’s Refund Check:    $1,252

The student withdraws from CSUCI after completing 9.0% of the total semester.

• The semester began on August 24th and ended on December 23^rd.
• The student totally withdraws on September 3^rd.
• This is the 11th day of a semester that is 122 days long (or 9.0%)
• Federal law states that this student has “earned” 9.0 % of federal aid disbursed:
• 100% of aid disbursed $4,480
• 9.0% of aid earned is $403.20 thus 91.0% unearned aid is $2,937.48

Before returning any cancelled fees to the student, CI will calculate unearned aid that needs to be returned to federal program. CI and the student will share the 91.0 % of unearned aid to be returned. CI’s portion is determined by multiplying the total charges ($3,228) by the unearned percentage (91.0%) which will be $1,732 ($1,732 Loan + $1,205.48 Pell). This will be the amount of aid returned by the institution.

The student will be responsible for the remaining balance:

• Unearned aid $4,076.80
• Institutional Share is $2,937.48
• Student Share is $1,139.32

Any remaining balance of a Direct loan, will be repaid by the student in accordance with terms of the Master Promissory Note. 

Students must make arrangements with the Student Business Services Office (SBS) to repay any amount exceeding the credit balance created by the cancellation of any or all fees.