Federal Student Aid Policies and Procedures
Verification Process and Procedures
CSU must check the accuracy of all applications the Central Processing System (CPS) selects for verification, up to 30 percent of our total number of federal aid applicants. The CPS will select applicants for verification due to edit checks which identify inconsistencies or potential errors, as well as randomly select applicants for verification. CSU must also verify any application information that it has reason to believe is incorrect or discrepant. If the CPS selects an application for verification, it is required that CSU verifies five major data elements:
- Household size
- Number enrolled in college
- Adjusted gross income (AGI)
- U.S. income tax paid
- Certain untaxed income and benefits
- Social Security Benefits
- Child Support Received
- IRA/Keogh deductions
- Foreign income exclusion
- Earned income credit
- Interest on tax free bonds
- Welfare benefits including TANF
Students selected for verification are sent a letter including instructions regarding the documents that should be submitted to CSU within 10 days. The file is held on a pending status and no award will be made until the requested documentation has been received and reviewed. Exceptions are granted for students that are only eligible for unsubsidized Stafford loans, and PLUS loans as these applications do not have to be verified.
The data reported on the verification worksheet, federal tax returns, and other supporting documentation provided is checked against the appropriate data elements on the Institutional Student Information Record (ISIR).
Generally speaking, when the new information conflicts with the original information presented on the FAFSA, corrections, updates, and adjustments may need to be made and a new expected family contribution (EFC) calculated. The new EFC can be calculated by the school and only needs to be submitted to CPS for students eligible for Federal Pell Grants.
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Undergraduate Grade Level Determination
Any student pursuing an undergraduate degree must be classified by grade level, as well as meet grade level progression in order to comply with the requirements of FSA and the William D. Ford Federal Direct Loan (Direct Loan) Program. Graduate students do not have grade level requirements.
Please refer to the table below to determine the grade level or the progression rate of an undergraduate student.
| Number of Credits Completed |
Student’s Grade Level |
| 0 to 24 credits |
Freshman |
| 25 to 48 credits |
Sophomore |
| 49 to 72 credits |
Junior |
| 73 or more credits |
Senior |
Grade level progression occurs after 24 semester hours are successfully completed. This is based off of the federal requirement that an academic year must meet minimum requirements. At CSU, this means a minimum of 24 semester hours and a minimum of 30 weeks of instruction.
Any new student entering CSU wishing to use FSA must first be fully accepted into an approved program. The results of the evaluation will determine what credit will transfer into CSU, which will also determine the student’s current grade level. While attending CSU, the student will need to submit a course transfer request form if subsequent coursework is completed outside of CSU. Then the student’s grade level would be recalculated using the additional transfer credit to ensure that the student’s account and grade level will be accurate.
Regarding loan limits associated with a student’s grade level, a student will only progress to a higher grade level once he/she begins a new academic year.
Award Year Requirements
A student is required to complete an academic year in order to receive additional federal student loans. CSU defines our academic year as 24 semester hours over a period of 32 weeks of instructional time for undergraduate students and 12 semester hours over a period of 32 weeks of instructional time for graduate students. If a student drops or withdraws and fails to complete the academic year requirements and exhausts all of their financial aid eligibility for the award year, they may be required to take courses using an alternative method of payment in order to complete the required hours.
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Loan Counseling
Loan Entrance/Exit Counseling (Required)
The U.S. Department of Education requires that any student receiving a Federal Direct Loan complete loan entrance and exit counseling. Loan entrance counseling provides information to students concerning how to manage student loans, both during and after college. Exit Counseling is generally required once a student drops below half-time enrollment status, withdraws or graduates. The student must notify the CSU Office of Financial Aid prior to withdrawal or graduation for loan counseling. The purpose of loan exit counseling is to inform the student of their tentative total loans received while in attendance at CSU and to provide the student with an estimated payment schedule.
Borrower Rights & Responsibilities
If the student has Federal Direct Loans, the name of the lender or agency that holds the student's loan(s), where to send the student's payments, and where to write or call if the student has questions
- The full amount of the loan
- The interest rate
- When the student must start repaying the loan
- The effect borrowing will have on the student's eligibility for other types of financial aid
- A complete list of any charges the student must pay (loan fees) and information on how those charges are collected
- The yearly and total amounts the student can borrow
- The maximum repayment periods and the minimum repayment amount
- An explanation of default and its consequences
- An explanation of available options for consolidating or refinancing the student loan
- A statement that the student can prepay the loan at any time without penalty
The borrower has the right to receive the following information before leaving school.
- The amount of the student's total debt (principal and estimated interest), what the student's interest late is, and the total interest charges on the loan(s)
- A loan repayment schedule that lets the student know when his/her first payment is due, the number and frequency of payments, and the amount of each payment
- If the student has FFEL Program Loans, the name of the lender or agency that holds the student's loan(s), where to send the student's payments, and where to write or call if the student has questions
- The fees the student should expect during the repayment period, such as late charges and collection or litigation costs if delinquent or in default
- An explanation of available options for consolidating or refinancing the student's loan
- A statement that the student can repay his/her loan without penalty at any time
The borrower has a responsibility to do the following.
- Understand that by signing the promissory note, the student is agreeing to repay the loan according to the terms of the note
- Make payments on the student loan even if the student does not receive a bill or repayment notice
- If the student applies for a deferment or forbearance, he/she must still continue to make payments until notification that the request has been granted
- Notify the appropriate representative (institution, agency, or lender) that manages the student's loan when the student graduates, withdraws from school, or drops below half-time status; changes his/her name, address, or Social Security Number, or transfers to another institution
- Receive entrance counseling before being given the first loan disbursement, and to receive exit counseling before leaving school
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FSA Disbursements
When a student applies for financial aid, the package awarded is based on an academic year. The academic year consist of 4 terms (32 weeks). FSA awarded for the academic year will be divided into four payment periods that will cover each term.
Federal loans to students and Pell Grant disbursements will not post to the students’ accounts until after day 14 of the term. After the first week of the term has ended, CSU will verify that the first week of assignments have been completed in all courses enrolled for that term. It is very important that a student completes the first week of instructional requirements; otherwise it will result in the student being institutionally dropped from the course(s). Any Pell eligible student institutionally dropped from a course(s) will have an adjustment to their award.
Once federal funds have been disbursed, students will receive a disbursement notice via email from the CSU Office of Financial Aid.
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Financial Aid Refunds
If there is a credit balance remaining on a student’s account after all obligations are paid, a financial aid refund will be generated. Financial aid refunds are not generated until the instructors have completed their attendance verifications. The attendance verifications must be completed for each class that a student is registered for or the financial aid refund will be delayed.
Automated Clearing House (ACH) is the University’s preferred method for processing student refunds. The ACH method allows the University to deposit your refund directly into a U.S. checking or savings account. This is the most efficient and expeditious way to process a refund.
You may enroll in ACH deposit via mycsu.columbiasouthern.edu. You will need your bank routing number and your checking or savings account number. This information is available on the bottom of your checks or directly from your banking institution. We understand that many people may not carry checks. In this case, you should obtain a letter from your financial institution on their letterhead with the pertinent bank account routing information on it and return it with the ACH form.
PLEASE NOTE: International students may only receive ACH deposit into a U.S. checking or savings account.
If you do not sign up for the ACH method, a check for the credit balance will be mailed to your current address in our database.
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Return of Title IV Funds
The CSU Business Office is notified by the CSU Student Services Department or by the student of the student’s withdrawal. Based on this notification, the student file is pulled, the withdrawal information is reviewed, and an R2T4 calculation is performed if appropriate.
All Leave of Absence (LOA) requests should be submitted no later than the student’s last day of attendance for consideration. If they are approved for an LOA then no R2T4 calculation is performed (unless the student fails to return.)
All withdrawal files must be reviewed within 30 days to comply with Federal Post Withdrawal Disbursement calculation regulations.
If a student has received Federal Stafford/PLUS loan funds or Federal Grant funds during their current period of enrollment, and there is a break in their attendance that is considered a withdrawal, an R2T4 calculation is required to be performed. If a student has not yet been awarded, but has a valid ISIR for the current award year, and is Federal Grant eligible based on their ISIR, an R2T4 calculation is needed to discover potential Post Withdrawal Disbursements for the Federal Grant.
When a student withdraws from CSU or is withdrawn by the institution where the break in attendance is greater than seven days, and the student did not receive approval for an LOA, this is considered a withdrawal. These withdrawals require an R2T4 calculation if Federal funds have been disbursed for the current payment period, or if the student is eligible for a post withdrawal disbursement of federal funds.
For current financial aid recipients, a tuition percentage will be determined based on the return of Title IV funds regulations. The CSU Office of Financial Aid determines the return of Title IV funds percentage and informs the Business 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.
The return of funds policy follows these steps.
- Determine the percentage of the enrollment period completed by the student.
Days Attended ÷ Days in Enrollment Period = Percentage Completed
If the calculated percentage exceeds 60 percent, 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./li>
- Distribute the responsibility to return funds between the institution and the student.
CSU and the student are both responsible for returning unearned funds to the appropriate programs in specific loan/grant order. The institution must return the lesser of:
- The total amount of unearned aid; OR
- Institutional charges multiplied by the unearned percentage.
Amounts that must be returned will first be applied to federal loans and then to grants. Loan borrowers will be permitted to repay loans based on the terms of the promissory note.
The student will also be billed for any amount due to CSU resulting from the universities return of federal aid funds. For example, if CSU is required to return federal aid, which was used to pay a portion of the student’s charges for the enrollment period, the student is required to pay CSU for the unpaid portion of the charges.
If a student owes any money to the school resulting from the return of federal aid funds, the student will receive a bill from the accounting office.
Any refund or repayment obligation will be clearly outlined for the student in writing and will also appear on their CSU bill.
- Return the Title IV aid, based on the type of aid disbursed, in the following order:
- Federal Unsubsidized Stafford Loan
- Federal (Subsidized) Stafford Loan
- Federal PLUS (Parent) Loan
- Federal Pell Grant
If the contracted charges are adjusted downward by the Business Office after the withdrawal was finalized, any credit balance will be refunded to the funding source in the order outlined above.
The student's grace period for loan repayments for Federal Unsubsidized and Subsidized Stafford Loans will begin on the day of the withdrawal from CSU. The student should contact the lender if they have questions regarding their grace period or repayment status.
The student's eligibility for future financial aid may change based on their withdrawal from CSU and SAP standards.
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Post-Withdrawal Disbursements
The requirements for a post-withdrawal disbursement are similar in many ways to the requirements under Subpart K – Cash Management of the Student Assistance General Provisions regulations. However, in some cases, the post-withdrawal disbursement requirements differ from the cash management requirements. Any post-withdrawal disbursement due must meet the current required conditions for late disbursements. For example, The U.S. Department of Education must have processed a Student Aid Report (SAR) or Institutional Student Information Record (ISIR) with an official EFC prior to the student’s loss of eligibility. These conditions are listed in a chart on Late Disbursements in Volume 4 – Processing Aid and Managing Federal Student Aid Funds. A school is required to make (or offer as appropriate) post-withdrawal disbursements. A post withdrawal disbursement must be made within 180 days of the date the institution determines that the student withdrew. The amount of a post-withdrawal disbursement is determined by following the requirements for calculating earned FSA, and has no relationship to incurred educational costs. CSU will notify the student of the post withdrawal disbursement, and make any necessary disbursement.
Procedures
- If a student is eligible for a post withdrawal of a federal grant, it will be disbursed within 45 days of the date of determination of withdrawal.
- A student/parent is notified of eligibility for a post-withdrawal disbursement of a Federal loan within 30 days of the withdrawal date by email and must respond within fourteen days.
- If student/parent accepts the post withdrawal disbursement of a federal loan, it must be made as soon as possible but no later than 180 days of the withdrawal date.
- The priorities for disbursement are grants first; paid to outstanding institutional charges before being paid directly to student.
Returning Unearned Funds
CSU and the student could both be responsible for returning unearned funds to the appropriate programs in specific loan/grant order, depending on the result of the R2T4 calculation. CSU must return the lesser of:
- The total amount of unearned aid; OR
- Institutional charges multiplied by the unearned percentage.
Amounts that must be returned will first be applied to federal loans and then to grants. Loan borrowers will be permitted to repay loans based on the terms of the promissory note.
The student will also be billed for any amount due to CSU resulting from CSU return of federal aid funds. For example, if CSU is required to return federal aid, which was used to pay a portion of the student’s charges for the enrollment period, the student is required to pay CSU for the unpaid portion of the charges.
If a student owes any money to CSU resulting from the return of federal funds, the student will receive a bill from the Business Office.
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Satisfactory Academic Progress Policy (SAP) for Title IV Students
Federal regulations require CSU to establish and apply reasonable standards of Satisfactory Academic Progress (SAP) for eligible students to receive financial assistance under the programs authorized by Title IV of the Higher Education Act. CSU students who wish to be considered for financial aid must:
- Be in good standing at the university and
- Maintain satisfactory academic progress in their program of study as set forth in this policy.
SAP is an eligibility requirement and is administered by the university in addition to the academic standards of performance required under the CSU Academic Progress Policy. The SAP policy is reviewed annually by the CSU Registrar.
Students are evaluated at the end of every term for SAP once they have attempted two terms, which is equivalent to 16 weeks of instruction. All students are evaluated on three standards: grade point average (qualitative measure), semester hours completion ratio (quantitative measure), and maximum timeframe. To maintain eligibility under SAP, students must meet all three standards.
Standard 1: Grade Point Average (Qualitative Measure)
Students must maintain a minimum qualitative measure of progress defined as the cumulative Grade Point Average (GPA). The requirements are listed below:
- Students in undergraduate programs must maintain a 2.0 cumulative GPA.
- Students in graduate programs must maintain a 3.0 cumulative GPA.
Standard 2: Semester Hour Completion Ratio (Quantitative Measure)
Students (either full-time or part-time) must achieve a passing rate of at least 67 percent of all hours attempted. Hours attempted include completed courses, repeated courses, withdrawals, and incompletes. Transfer credit, if applicable, is also calculated in the completion ratio.
Standard 3: Maximum Timeframe
Students must complete their degree program within 150 percent of the semester hour requirements for the degree. Students must complete an associate's degree within 90 semester hours, a bachelor's degree within 180 semester hours, a master's degree within 54 semester hours and a doctoral degree within 92 semester hours. Students who are unable to complete their degree program within the timeframe limitation will no longer be eligible to use federal financial aid to cover any costs associated with completing degree program. Transfer credit, if applicable, is also calculated in the maximum timeframe calculation.
SAP Notification
Students are notified of the SAP policy in the CSU catalogue, website and during the initial financial aid application process. All periods of enrollment at CSU are calculated in SAP, including periods of enrollment during which a student did not receive financial aid. Cumulative GPAs are calculated using grades earned at CSU.
Transfer Credits
Transfer credits accepted toward the student's degree program will be included when calculating the SAP Maximum Timeframe and quantitative progress. This includes credit for English as a Second Language (ESL) and remedial courses, if accepted toward the degree program.
Repeated Courses
Students receiving Title IV Aid may repeat a course, as allowed under CSU academic policy. Repeated courses will count toward the quantitative and maximum timeframe SAP standards.
Incomplete Grades
Students receiving Title IV Aid may receive incomplete grades, as allowed under CSU academic policy. Incomplete grades will count toward the quantitative and maximum timeframe standards of SAP. Students who do not complete course requirements after an incomplete grade is assigned will receive a course grade based on the assignments completed with zeros being assigned for non-completed assignments.
Second Bachelor's Degree
Students who are pursuing a second CSU bachelor's degree are eligible to receive federal financial aid pending eligibility. Students pursuing a second bachelor’s degree are not eligible to receive Federal Pell Grants. The timeframe limitation in a second CSU bachelor's degree is 90 semester hours, including transfer credits.
SAP Evaluation
SAP is evaluated once the student attempts two terms, which is equivalent to 16 weeks of instruction. Students who fail to meet SAP standards immediately following SAP evaluation will be placed on SAP Warning status for one term and will be expected to work with their academic advisor to discuss enrollment options.
Students on SAP Warning status will continue to be eligible to receive federal aid for this additional eight-week term. Students on SAP Warning status who fail to meet SAP standards at the end of the eight-week term will be placed on Failing SAP status and will NOT be eligible to receive financial aid. Students who are placed on Failing SAP status will have the opportunity to submit an appeal in writing to the SAP Appeals Committee.
Appeal Guidelines
Students on Failing SAP status may appeal to the SAP Appeals Committee if they have extenuating circumstances during the period of academic substandard performance and are able to provide supporting documentation. The committee will make every effort to consider each appeal carefully and provide a decision within seven to 10 business days. Appeals that are approved will result in a student being placed on SAP Probation status and will require collaboration with the assigned academic advisor to develop a plan of action leading to successful degree completion. While on SAP Probation status, students will be evaluated for SAP at the end of each term to ensure the student is meeting the academic standards of the action plan, and if at any point the student is not meeting the academic standards, eligibility for financial aid will be suspended.
Appeals should be in writing and addressed to: Columbia Southern University, SAP Appeals Committee, Office of the Registrar, 21982 University Lane, Orange Beach, AL 36561. Appeal letters should include reasons for failing to meet SAP standards, any supporting documentation, and a plan of action describing changes that will take place in order to successfully meet SAP standards at the next evaluation.
Reinstatement for Non-Appeal
Reinstatement following suspension is not automatic. To regain eligibility for federal financial aid, a student must do ALL of the following: 1. Complete a minimum of 12 credit hours WITHOUT using federal financial aid at Columbia Southern University; 2. Achieve a minimum 2.0 undergraduate cumulative GPA or 3.0 for graduates; and 3. Complete 100% of attempted semester hours. Students who satisfy the above requirements must contact their academic advisor to request reinstatement. Students who are making satisfactory academic progress will be eligible to reinstate federal financial aid, pending eligibility, and will be expected to meet SAP standards at the end of each term until degree completion.