Financial Aid

Financial Aid Satisfactory Academic Progress Policy Federal regulations require Martin Luther College to establish, publish, and apply satisfactory academic progress standards for all students who receive Title IV financial aid. Satisfactory Academic Progress (SAP) is measured after each semester by reviewing the student’s qualitative progress as measured by cumulative GPA as well as the quantitative progress as measured by determining the percent of credits attempted that are completed. The Financial Aid Office is responsible for ensuring that all students who receive Title IV financial aid, state financial aid, and institutionally-controlled financial aid are meeting these standards. The standards of satisfactory academic progress apply for all financial assistance programs, including Federal Pell Grant, Federal Perkins Loan, Federal Work-Study (FWS), Federal Supplemental Educational Opportunity Grant (FSEOG), Federal Direct Student Loans (Stafford and PLUS), Corporation for National & Community Service (AmeriCorps), as well as assistance from the state and the institution.

All financial aid recipients must progress at a reasonable rate (make satisfactory progress) toward achieving their degree. This requirement applies to all terms, whether or not the student received financial aid.

Qualitative Progress

In order to retain financial aid eligibility, the student must maintain a semester GPA and cumulative GPA of:

• Following trimester I cumulative GPA of 1.70

• Following trimester II cumulative GPA of 1.80

• Following trimester III cumulative GPA of 1.90

• Following trimester IV cumulative GPA of 2.00

• Subsequent trimesters cumulative GPA of 2.00

Individuals who studied previously at MLC as a traditional student will still follow the cumulative GPA, and both semesters and trimesters will count towards their academic standing.

Quantitative Progress

Credit Completion

Students must complete 67% of all credits attempted. A completed credit has a grade of A, B, C, D, or S. Withdrawals, F grades, incomplete courses, and repeated courses are included in attempted credits.

Maximum Time Frame

All students are expected to finish their degree within an acceptable period of time. Financial aid recipients may continue to receive aid through their cumulative attempted credits that equal 150% of the required number of credits needed to complete their program, including transfer credits from another college. As soon as it becomes mathematically impossible for a student to graduate within the 150% limit, MLC will place the student on Financial Aid Suspension. Students who require developmental coursework may appeal to have the 150% limit extended.

Additional Factors

The following are considered when evaluating a student’s satisfactory academic progress.

Withdrawn Classes

Under special circumstances, a student may drop a course with the approval of the administrator after the first two weeks of the trimester and up to two weeks after midterm. For these courses, the student’s record shows W and is not counted in computing the grade point average. An unauthorized withdrawal from a class is recorded as an F. This F is counted in the GPA.

Incomplete Classes

Incomplete grades are temporary grades given when a student, doing otherwise acceptable work, is unable to complete the course assignments for reasons acceptable to the instructor. A first trimester incomplete must be converted to a permanent grade by midterm of the second trimester, a second trimester incomplete by midterm of the third trimester, and a third trimester incomplete by midterm of the first trimester of the following academic year, or the permanent grade is recorded as an F.

Pass/Fail Classes

Passing credits received for pass/fail courses are considered attempted and earned credits; failing grades in pass/fail courses are considered attempted but not earned.

Repeated Classes

Classes for failed courses may be repeated until they are passed. Repeated courses are included in the calculation of attempted and earned hours. Please note: a student may only receive financial aid for taking a previously passed course once. If a student needs to raise the grade for a major or other requirement, as long as the course is considered passed, the student cannot receive federal funds for more than one repeat.

Audit Classes

Audited courses are not considered credits attempted or earned.

Remedial Classes

Remedial courses are included in the calculation of both attempted and earned hours.

Transfer Students

Transfer credits do not count in the calculation of the GPA. However, transfer credits accepted are included in both hours attempted and hours completed.

Change of Major

If a student changes majors, the hours attempted under all courses of study are included in the calculation of attempted and earned hours.

Definition of Terms

Warning

This is the status assigned to a student who for the first time fails to achieve satisfactory academic progress at the end of a trimester.

Probation

This is the status assigned to a student placed on warning status the previous trimester who subsequently fails to achieve satisfactory academic progress, but whose appeal to have eligibility restored has been granted.

Warning and Ineligibility

Warning: Students who fail to achieve either the qualitative and/or quantitative requirements for satisfactory academic progress will be on warning status and will receive financial aid one additional trimester. The warning trimester is meant to inform the student of academic problems and provide for corrective action. The student will be informed of the warning status via a letter from Financial Aid. Students who achieve the GPA requirement and pace requirements in the subsequent trimester will have their warning status removed.

Ineligibility: Students who do not achieve either the qualitative and/or quantitative requirements for satisfactory academic progress following the warning trimester will be ineligible for Title IV, state, and institutional financial aid for the following trimester or summer session, or for as long as the student has not achieved satisfactory academic progress. The Director of Financial Aid will send a letter to the student explaining the status and the conditions under which the student can appeal to have financial aid restored. The letter will inform the student that the appeal must include why the student failed to meet satisfactory academic progress and what has changed that will allow the student to achieve satisfactory academic progress at the next evaluation.

Students who are on warning status and subsequently achieve Satisfactory Academic Progress, but then again fall below SAP standards, return to warning status.

Appeals and Reinstatement

To appeal the financial aid suspension, a student must submit, to the Financial Aid Office, a signed and dated letter of appeal explaining why financial aid should be reinstated. A student notified of ineligibility for aid may appeal to have their eligibility reinstated up to three times. A student who has been approved after the third appeal is required to maintain appropriate progress in a program plan. The program plan will be outlined and monitored by the dean and advisor for that student, ensuring their GPA will attain acceptable SAP standards within three trimesters. If at any time the student does not attain the necessary requirements of the 3-trimester program plan, they will be permanently ineligible for institutional, state, and Title IV financial aid.

Acceptable reasons for an appeal include the following:

• Medical problem

• Family problem

• Death of a relative

• Emotional problem

• Learning disability

• Interpersonal problem with a friend, roommate, or significant other

• Difficulty balancing such things as work and family responsibilities with coursework

• Financial difficulty

• Change in or addition to a program

• Other special, significant, or unusual circumstances

Documentation verifying the situation may be requested. The Financial Aid Committee will consider the appeal and render a decision, which the Director of Financial Aid conveys to the student in writing. If the appeal is not granted, this does not preclude a student from enrolling, but no financial aid is available. Students will have their financial aid eligibility reinstated once satisfactory academic progress standards are met.

Publicity

Martin Luther College’s SAP policy is published in the college catalog and on the MLC website under Financial Aid. Award letters include information directing students to the college’s web address, where the SAP policy can be reviewed. During the week of fall midterm break, a notice is posted on the MLC Portal reminding all students of the college’s satisfactory academic progress policy and directing them to the complete policy posted on the intranet or to printed copies available in the Financial Aid Office.

Determination of Last Date of Attendance

For financial aid purposes there are two types of withdrawals: official and unofficial.

a. Official withdrawal – leaving MLC by dropping all classes for the term or by going

through the formal withdrawal from college process.

b. Unofficial withdrawal – the student discontinues class attendance without going

through the formal withdrawal from college process.

Since MLC is a required attendance institution, the last date of attendance (for both official and unofficial withdrawals) is determined by the date the student last participated in any class.

Leave of Absence

A student must meet the requirements for a leave of absence as outlined in the “Academic Policies” section of this catalog. MLC’s financial aid policies and federal regulations do not view a student on leave as a current student.

Post-Withdrawal Disbursements

1. If the student did not receive all of the funds that were earned, they may be due a post-withdrawal disbursement. If the student’s post-withdrawal disbursement includes loan funds, MLC must get the student’s permission before it can disburse them. The student may choose to decline some or all of the loan funds so that they do not incur additional debt.

a. The student’s school may automatically use all or a portion of the student’s post-withdrawal disbursement of grant funds for tuition, fees, and room and board charges (as contracted with MLC).

b. MLC needs the student’s permission to use the post-withdrawal grant disbursement for school charges other than tuition, fees, and room and board. If the student does not give permission, they will be offered the funds as a refund.

c. MLC will return any Pell funds within 45 days of the determination that the student withdrew and return any Title IV loan funds within 180 days.

How the Unearned Financial Aid is Calculated

1. Students who receive federal financial aid must “earn” the aid they receive by staying enrolled in classes. The amount of federal financial aid assistance the student earns is on a prorated basis. Students who withdraw or do not complete all registered classes during the semester may be required to return some of the financial aid they were awarded based on the Return of Title IV (R2T4) Calculation. Once 60% of the trimester is completed, a student is considered to have earned all of his/her financial aid and will not be required to return any federal funds.

2. The following formula is used to determine the percentage of unearned aid that has to be returned to the federal government:

a. The percent earned is equal to the number of calendar days completed up to the withdrawal date, divided by the total calendar days in the payment period (less any scheduled breaks that are at least 5 days long).

b. The payment period for most students is the entire trimester. However, for students enrolled in modules (courses which are not scheduled for the entire semester or term), the payment period only includes those days for the module(s) in which the student is registered.

c. The percent unearned is equal to 100 percent minus the percent earned. Institutional funds are earned and recalculated based on the prorated policy as described for federal financial aid funds. Tuition/fee refunds also affect the recalculation of institutional financial aid.

MLC Responsibility for Returning Unearned Aid

MLC will return all unearned funds back to the aid program, and the student will be responsible for any balance this creates.

Student Responsibility for Returning Unearned Aid

1. If MLC is not required to return all of the excess funds, the student must return the remaining amount. For any loan funds that must be returned, the student (or the student’s parent for a PLUS Loan) must repay in accordance with the terms of the promissory note. That is, the student must make scheduled payments to the holder of the loan over a period of time.

a. The requirements for Title IV program funds when a student withdraws are separate from any refund policy that MLC may have; therefore, the student may still owe funds to MLC to cover unpaid institutional charges.

b. MLC will also charge the student for any Title IV program funds that MLC is required to return. If the return of the funds creates a balance due on the student account, the student will be responsible to pay the balance on their account.

Order of Return of Title IV Funds

1. A school must return Title IV funds to the programs from which the student received aid during the payment period or period of enrollment as applicable, in the following order, up to the net amount disbursed from each source:

a. Federal Unsubsidized Direct loans

b. Federal Subsidized Direct loans

c. Federal Parent PLUS Direct loans

d. Federal Pell Grants for which a Return is required

e. Federal Supplemental Educational Opportunity Grants (FSEOG) for which a Return is required

f. Iraq and Afghanistan Service Grants for which a Return is required