Policies

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CHANGES IN FINANCIAL AID INFORMATION  If you drop from full-time (12 unit) status within the first three weeks of the term, you must notify the Financial Aid Office. If your address changes, you must inform the Office of Registration and Records.

CHANGES IN ENROLLMENT STATUS  Students who drop from full-time to part-time status within the first three weeks of the term will have their financial aid is adjusted as follows:

FINANCIAL AID ADJUSTMENT Federal PELL Grant determined by the Federal Payment Schedule Federal SEOG prorated California State Grant calculated based on half or three quarter-time enrollment Otis Scholarships/Grants cancelled Federal Stafford Loan reviewed for eligibility based on at least half-time enrollment Federal PLUS Loan reviewed for eligibility based on at least half-time enrollment Federal Perkins Loan calculated based on half-time enrollment

Students who enroll in less than six units will have all aid cancelled except for the Federal Pell Grant, SEOG, Cal Grant, and ACG which will be reduced. Students who withdraw will be charged an administrative fee amounting to 5% of the total institutional costs, or $100.00, whichever is less.

SATISFACTORY ACADEMIC PROGRESS (SAP) Maintaining SAP means fulfilling certain minimum standards in regard to academic progress and performance.  These minimum standards are demonstrated in three areas: Grade Point Average (GPA), completion of academic year credits, and completion of the student's degree objective (maximum credits).

GPA Requirement:

Undergraduate students are required to have and maintain a 2.0 cumulative Otis GPA at the end of each year to qualify for all state and Otis institutional aid. Undergraduates must have and maintain a 2.0 cumulative Otis GPA by the end of the second academic year to qualify for federal aid.  Progress is monitored on a per term basis.  Students who fail to meet these requirements will become ineligible for aid and remain so until they have a 2.0 cumulative Otis GPA.  To be reinstated for federal, state and Otis institutional financial aid eligibility, the cumulative Otis GPA must be brought up to a 2.0.

Graduate students must pass all courses.  If a graduate student receives a grade of "F" during a semester, he or she will be placed on academic probation for the followingsemester.  If the student fails another course in the subsequent semester, he or she will become ineligible for aid and remain so until he or she enrolls and passes in the following semester.  Students who are acedemically dismissed will be suspended from receiving any type of aid.  They regain eligibility once readmitted by the Academic Standing Committee. 

Completion of Credits: Students who receive financial aid must complete the minimum number of credits each term.

STATUS BFA STUDENTS MFA STUDENTS Units Attempted 12 + Units 9 + Units SAP Progress Met 11 - 12 Units 8 - 9 Units Probation 8 - 10 Units 6 - 7 Units Disqualified (No Aid) 0 - 7 Units 0 - 5 Units

If a student receives a failing grade, an incomplete, or audits or withdraws from a class, these credits cannot be counted toward credit requirements. The Financial Aid Office monitors completed units at the end of each term, and determines if students:

• Have made satisfactory academic progress.
• Will be placed on probation for one semester, or...
• Will be disqualified from receiving financial aid.

Reinstatement of Financial Aid Eligibility during the next term that a disqualified student enrolls in 12 or more units, that student must complete at least 12 units.

Maximum Credit: Students are required by federal regulations to complete their degrees within a reasonable time frame and within a reasonable number of credits. Undergraduate students are allowed a maximum of 150 units and graduate students are allowed 65 units to complete their degrees.

Appeal: Students who are determined ineligible for financial aid due to lack of Satisfactory Academic Progress (SAP) may appeal this decision. Students must complete and submit an SAP Appeal Form to the Financial Aid Office.  Students will be notified of the decision by mail or Otis student email.

Important Notes

• Any and all Otis grants and scholarships ard not earned until after the completion of the tuition adjustment period as published in the student handbook.
• Students who drop below full-time status or withdraw before the completion of the tuition adjustment period as published in the student handbook  forfeit all Otis grants and scholarships.

 

RETURN OF FINANCIAL AID AT THE TIME OF WITHDRAWAL

Students who completely withdraw during the term at Otis will lose all or part of their financial aid depending on how many days they attended Otis. The amount of financial aid earned is determined on a pro-rated basis. Refunds are Disbursed in the following order:

• Federal Direct Loan (unsubsidized)
• Federal Direct Loan (subsidized)
• Federal Parent PLUS Loan
• Federal Perkins Loan
• Federal Graduate PLUS Loan
• Federal Pell Grant
• Federal FSEOG
• Cal Grant and other state grants
• Otis College of Art and Design
• The Student

Example of Return of Financial Aid Policy:

Mary receives the following financial aid package:

• $1000 FSEOG
• $1000 Pell Grant
• $1000 PLUS Loan
• $1000 Subsidized or Unsubsidized Direct Loan
• $3000 Otis Institutional Grant
• $7000 Total

Mary attends 45 days of the 111-day fall term, and then withdraws. 45 days attended/111 days in the semester = 40% earned aid. Total federal financial aid earned: 40% of $4000 = $1600

She retains:

• $3000 Otis Institutional Grant
• $1000 FSEOG
• $600  Pell Grant

Otis returns federal aid in the following order:

• $1000 Subsidized or Unsubsidized Direct Loan
• $1000 PLUS Loan
• $400 Pell Grant
• $0 FSEOG

Financial Consequences of Withdrawal
In the above example, Mary is withdrawing at a time in which she will receive no reduction of tuition charges. Her financial liability is Tuition fees and charges: $11,710 - Financial Aid: $4,600 = Balance Due: $7,110

TUITION REFUND The official date of withdrawal used in calculating refunds will be the student's last date of attendance as determined by the Registrar.  Students dismissed from Otis for disciplinary reasons forfeit the right to claim refunds of tuition, deposits, and fees.

Students who withdraw from Otis College will be refunded tuition and fees according to the following schedule; in addition, students will be charged a $100 withdrawal fee:

90% refund By the end of 1st week of classes
75% refund By the end of 2nd week of classes
50% refund By the end of 3rd week of classes
25% refund By the end of 4th week of classes
0% refund After the 4th week of classes

REFUND TO BORROWERS 

Student Accounts Refund Policy In some instances, student accounts will show a credit balance (funds due back to the student or, in some cases, the parents) upon posting of all payments for the current term. In such cases, the following procedure applies:

The processing of the refund by Student Accounts begins when the student's account is at a credit balance.  Refund checks are issued after the add deadline.

Processing by Student Accounts is within (10) eight days after all of the following:

• A request form is signed by the student.
• The add deadline has passed.
• The account has a credit balance.
• Verification that the funds received have been deposited to the College's bank account.

Financial Aid Refund Policy In order for Financial Aid to be disbursed (credited) to the student's account, the Financial Aid file must be complete, including all paperwork requested (tax forms, loan applications, verification forms, etc.).
Regarding loans, the lending institution will inform the student, in writing, of the status of his/her loan. In most cases, the student is notified before funds are received by Otis. When the Otis Business Office receives electronically transmitted funds, the funds are processed and posted to the student's account within (3) three business days of receipt. In the case of paper checks, the student will be contacted to come to Student Accounts  to endorse the check. After endorsement, the funds will be processed within (3) business days.

Once the Financial Aid process is completed and enrollment status has been verified, Financial Aid will be credited (disbursed) to the student's account. Note: an account is credited only when actual funds have been received and processed; the College does not advance monies or credit students' accounts for anticipated or estimated aid. A credit balance results when the amount of actual aid/payments posted to a student's account exceeds the total of tuition and fees charged for the semester. Funds are posted to the student's account in the order received. If a credit balance occurs due to the posting of a PLUS loan, the refunded amount will go to the student's parents.

Business Office/ Cashier Refund Policy  A refund check will be processed within (5) five days of receipt of the Refund Disbursement Form in the Business Office. All checks, with the exception of PLUS loan Refunds for the student's parents, will be mailed directly to the student at the official address on file with the Office of Registration and Records. The College's refund policy complies with the Higher Education Amendment's Act. The preceding information reflects regulations in effect at the time of this printing. Please contact the Financial Aid Office regarding any changes.

FINANCIAL AID OFFICE CODE OF CONDUCT

• Processes loan applications through any lender a student or parent chooses.
• Does not solicit or accept anything of value from any lender in exchange for any advantage sought by the lender or to make educational loans to students.
• Prohibits employees of the financial aid office from taking from any lender any gift worth more than nominal value.
• Prohibits employees of the financial aid office from entering into any type of consulting arrangement or other contract to provide to a lender services relating to educational loans.
• Prohibits employees of the financial aid office, who serve on an advisory board (or commission or group) relating to educational loans established by a lender or group of lenders from receiving anything of value from the lender or group of lenders in connection with serving on such advisory board (or commission or group).
• Prohibits external lenders' employees, representatives, or agents from providing staffing services to the financial aid office.
• Prohibits external lenders' employees, representatives, or agents from identifying themselves to students of the College or their parents as employees, representatives or agents of the financial aid office.
• Does not assign for any borrower, through award packaging or other methods, a loan to a particular lender, and does not refuse to certify or delay certification of any loan based on the borrower's selection of a particular lender or guaranty agency.

 

FINANCIAL AID AND THE MOBILITY PROGRAM Students on the mobility program are eligible for financial aid with the same requirements and eligibility as being on campus. Students do have the added responsibility to ensure that their file is complete before studying at another university or college.

STUDENT ELIGIBILITY FOR AID Otis follows and complies with the federal government requirement for federal aid.  The Student Eligibility guidelines are used to determine federal aid awards.