Students have the right to know the programs available at Otis; the procedures and forms for applying for student assistance; how eligibility is determined; the criteria for selecting recipients from a group of eligible applicants; the criteria for determining the types and amounts of financial assistance; access to relevant records in their student file; the terms and conditions governing the receipt of funds from any College scholarship, grant, student work, and loan programs; and policies that govern processes regarding financial aid offers and appeals regarding refusal of award offers.

Students who drop from full-time to part-time status within the first three weeks of the semester receive tuition credit according to the appropriate refund schedule and their financial aid is adjusted as follows:

• Federal PELL Grant: determined by the Federal Payment Schedule
• Cal Grant: calculated based on half or three quarter-time enrollment
• Federal Stafford/PLUS Loans: reviewed for eligibility based on at least half-time enrollment
• Otis Scholarships/Grants: cancelled
• Federal SEOG: prorated

Students who enroll in less than six units will have all aid cancelled except for the Federal Pell Grant and SEOG, 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.

Maintaining SAP means that students must fulfill 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

Undergraduates 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 semester 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.

Completion of Credits

If a student receives financial aid he/she must complete the minimum number of credits each semester.

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 semester and determines if students:

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

Maximum Credit

Students are required by federal regulation 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 to be 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.

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 catalog.
• Students who drop below full time status or withdraw after the completion of the tuition adjustment period as published in the catalog will retain Otis grants and scholarships.
• Students who drop below full time status or withdraw before the completion of the tuition adjustment period as published in the catalog forfeit all Otis grants and scholarships.

Students who completely withdraw during the semester 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:

1. Federal Stafford Loan (unsubsidized)
2. Federal Stafford Loan (subsidized)
3. Federal PLUS Loan
4. Federal Perkins Loan
5. Federal Graduate PLUS Loan
6. Federal Pell Grant
7. Federal Academic Competitiveness Grant (ACG Grant)
8. Federal FSEOG
9. Cal Grant and other state grants
10. Otis College of Art and Design
11. 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 Stafford Loan
• $3000 Otis Institutional Grant
• $7000 Total

Mary attends 45 days of the 111 day fall semester 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 Stafford 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. The following is her financial liability:

COA is an estimate of what it costs to attend Otis. Actual COA depends on enrollment and personal lifestyle. These figures are estimates only, since actual costs depend on enrollment and lifestyle.

The official date of withdrawal used in calculating refunds will be the student’s last date of attendance as determined by the Registrar.  Refer to “Change of Status” in the student catalogue.  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:

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 semester. In such cases, the following procedure applies:
The students complete a Refund Disbursement Form when they sign their Promissory Note or when they inform the Student Accounts Office of an increase in financial aid that will create a credit on his/her account.
The processing of the refund by the Student Account's office will begin when the student's account is at a credit balance.
Refund checks are issued after the add deadline.

The processing in the Student Account's office is within (8) eight days after all the following:

1. Refund checks are issued after the add deadline.
2. The processing in the Student Account's office is within (8) eight days after all the following:
3. A request form is signed by the student.
4. The add deadline has passed.
5. The account has a credit balance.
6. 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 your account within (3) three business days of receipt. In the case of paper checks, the student will be contacted to come to the Student Account's office 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.