Impact of a Leave of Absence on Financial Aid

Impact of a Leave of Absence on Financial Aid Leave of Absence Policy The purpose of this policy is to confirm UAMS is in compliance with federal regulations, 34 CFR (d), regarding the process for students requesting a leave of absence. A leave of absence (LOA) is a temporary interruption in a student’s program of study. A LOA cannot exceed 180 days in any 12 month period and may have a serious impact on a student’s financial aid. Any student considering requesting a LOA that received financial aid, should consult with the Financial Aid Office to determine how their financial aid will be affected. The student must request the leave of absence in writing to their Dean for approval. The letter should state the reason(s) for the request. A LOA cannot be granted for academic reasons (i.e. to keep a student from failing). There must be reasonable expectation that the student will return from LOA. A student returning from a LOA must resume training at the same point in the academic program that he or she began the LOA. Upon return from LOA, the institution may not assess the student any additional institutional charges. Therefore, the student is not eligible for any additional federal student aid (Title IV funds). If a student is a Title IV recipient, the institution must explain the requirements and regulations of his/her financial aid status (grace period, repayment, etc.) prior to granting the LOA. The information that will be provided will include the financial consequences if the student fails to return from LOA. A student granted a LOA is not to be considered withdrawn and no return of Title IV calculation is required. If a student does not meet the LOA criteria, the student is considered to have ceased attendance from the institution and a Title IV return of funds calculation is required if the student received federal aid. A Leave of Absence (LOA) is granted by the College in which the student is enrolled. A LOA is a temporary interruption in a student’s program of study during which the student is considered to be enrolled. An LOA cannot exceed 180 days in any 12 month period and may have a serious impact on a student’s financial aid. Any student considering requesting a leave of absence should consult with the Financial Aid Office to determine how their financial aid will be affected. Schools may neither credit a student’s account nor deliver loan proceeds to the student borrower while the student is on an approved leave of absence. A student who is approved for a leave of absence after receiving financial aid for the semester may be required to return a portion of the aid previously received. Federal educational loan regulations state that when a student borrower ceases to be enrolled at least half-time for 180 days (6 months) in any 12-month period, the borrower will be considered as withdrawn from school for loan repayment purposes. At that point, the school is required to calculate the amount of financial aid the student earned and the amount of financial aid that must be returned. These calculations are based on the time the student was enrolled. The percentage of the semester the student completed is the percentage of aid the student can keep. The percentage of the semester the student did not complete is the percentage of aid that must be returned. Once a student completes more than 60% of the semester, the student has earned 100% of the aid they received for that semester. Student borrowers are given a six month grace period on most types...