Citoyens américains

Once the funding is approved, the direct loan funding will be requested by the financial aid office. Once the request is approved, the funds will be sent by the U.S. Department of Education to the institution. The payments are usually disbursed in two or three equal installments: September, January, and May (if applicable). Funds will be disbursed only once the student has a valid registration. The funds will be received via an electronic fund transfer to the University of Ottawa student account in Canadian dollars on the schedule disbursement date. The disbursement date is generally the beginning of each term, or whenever the student has applied, and their file is finalized.

The annual direct loan funding limits are determined by the U.S. Department of Education and can be found on the following website: How Much Can I Borrow? The limits vary based on level and year of study, the dependency status, loan type and the cost of attendance.

The cost of attendance is calculated based on actual tuition cost, incidental and compulsory fees, insurance fees, book costs, pro-rated personal and living costs based on accommodations on or off campus, actual local travel, and the cost of one return trip to a student’s home per term. The calculation of the cost of attendance are final and cannot be appealed. The cost of attendance will be adjusted annually given changes in cost of life in the province of Ontario.

The interest that accumulates on the loan will depend on the loan type that the student applied for and was approved. In all cases, direct subsidized and unsubsidized loans have a fixed interest rate. This information is available on the Federal Student Aid website: Interest Rates and Fees for Federal Student Loans.

In addition to interest rates, most federal student loans have loan fees. The fees are a percentage of the total loan amount. The loan fee is deducted from the amount of money that is disbursed to students while they are in studies. This means that the money that the student receives will be less than the amount that they borrow. Students are responsible for paying back the entire amount that is borrowed, or approved, and not just the amount that is received. More information about this can also be found on the federal student aid website.

The U.S. government regulations stipulate that Title IV funding recipients must maintain satisfactory academic progress to remain eligible for all types of US Direct Loans. All students will have their academic progress reviewed at the end of each academic year. Students who have not met the SAP requirements will not be eligible for US Direct Loan funds for the subsequent academic year(s). SAP Requirements are defined as follows:

1. Qualitative component: Undergraduate students must have a CGPA of 4.0 (60-64%) at the end of each academic year. For graduate students, a CGPA of 5.0 (65-69%) must be obtained in each course credited towards the degree.

2. Quantitative component: Undergraduate and graduate students must process at a satisfactory pace of completion to meet quantitative standards set by the U.S. Department of Education. Meeting the pace of completion is calculated by dividing the total credits completed by total credits attempted. Students are required to complete 67% of all credited attempted to meet this requirement.

3. Timeframe component: Students are required to finish their degree within 150% of the published length of degree completion time (in credits or in years, as applicable). For example, for undergraduate students in a four-year degree, they must successfully complete 18 credits over a two-term period to remain on track. This will enable the student to complete their degree within the maximum timeframe (ex: 150% x 4 years = 6 years). For graduate students, the completion rate is based on the time limit set for the student’s academic program in the University of Ottawa’s graduate calendar.

For courses where grades are ABS, EIN, NS, F and E are considered unearned credits and will towards the attempted credits only. Unearned credits will negatively influence the pace of completion of the program requirements.

Withdrawals

Students in receipt of the direct loan program Title IV funding who withdrew form courses for the payment period (i.e. term) will no longer be eligible to receive further funding for the term in question. Course drops/withdrawals will only be counted in the quantitative measure and not in the overall pace of completion

Repeated courses

Courses that are repeated are included in the qualitative and quantitative measures. These courses are counted as attempted units. Students may not receive federal student aid twice for a course for which they have already received credit. This means that if a student passes and receives credit for a course, but retakes the course to get a better grade, the student is not eligible to receive aid for the course take a second time.

Transfer credits

Credits earned at a different institution will be considered when determining quantitative measures Transfer credits will not be used to determine a student’s cumulative grade point average.

Students that do not fulfill the SAP requirements will receive an email to their uOttawa email address informing them of their status. The student will be considered on probation/suspension and will have 10 business days to submit an appeal to the financial aid office. The appeal submission must include the following:

1. A letter from the student explaining the situation and circumstances that lead to them not meeting SAP requirements (i.e. illness, injury, family crisis, disability reasons, etc.). The letter must include an explanation the steps that the student will take to ensure that they satisfy the SAP requirements moving forward.

2. Supporting documentation to support the reasons for which the student did not fulfill the SAP requirements (i.e. medical documentation, letter from health care provider, etc.)

Once the appeal is submitted it will be reviewed in 5-10 business days. The possible outcomes of the appeal can be as follows:

1. A full reinstatement of eligibility to the US Direct Loans and reinstatement of student’s good standing.

2. A probationary period with possible conditions and reinstatement of student’s eligibility to the US Direct Loans.

3. A denial or suspension of US Direct Loans.

Additional information on the probation status

When notifying students of their probation period, a list of conditions will be listed as well to ensure that the student reestablishes their good standing. Examples of conditions may consist of the students raising the CGPA by the end of the Fall/Winter terms, meeting with an Academic Advisor in their faculty, presenting a strategic study plan to ensure their success. At the end of the Fall & Winter terms, a re-evaluation of the SAP will be completing to track the student’s progress and ensure the student has met the conditions outlined in their original probation email. Failure to meet SAP requirements during the probationary period will result in a denial of the student’ US Direct Loans.

Students that have already submitted an appeal and failed to fulfill the conditions outlined in the probation period cannot submit an additional appeal within the same academic year. Students will be able to submit an appeal for a subsequent academic year after they have demonstrated that they are back on track.

If an appeal is approved, a students will be eligible for the US Direct Loans back to the beginning of the payment period in which the appeal was approved. However, fi the appeal is only approved after the payment period has ended, the student is not eligible for any loans for this period. Rather, the student will be eligible to receive US Direct Loans for the upcoming payment period granted that they meet the eligibility requirements of the program.

After having submitted an appeal, if a student is denied US Direct Loans, but in a subsequent academic year meets the SAP requirements, it is the student’s responsibility to submit their federal student aid application and notify the Financial Aid and Awards Service that they wish to be reconsidered for aid. The student’s file will be first evaluated to determine if SAP requirements have been met, then proceed to evaluating the student’s entitlement for US Direct Loans for the year.

The US Department of Education requires a Return of Title IV funds (R2T4) Calculation to be completed when a student fully withdraws or reduces their course load to below half-time. This policy applies to students receiving all US Direct Loans (subsidized and unsubsidized), including the Parent Plus and Graduate Plus Loans. The institution must determine via the R2T4 calculation if the funds disbursed must be returned to the US government or if the student is entitled to keep all or a portion of the funding.

The R2T4 calculation is completed by following the worksheet provided by the US Department of Education. The R2T4 will determine how much of the loan may be retained and how much will need to be returned. Federal Student Aid regulations require that institutions perform the R2T4 calculation within 30 days from the date the school determined the student’s withdrawal or reduction in course enrollment. However, it is still the student’s responsibility to notify the Financial Aid and Awards Service of any changes to their enrollment. If the R2T4 determines that all or a portion of the funding must be returned to the US Department of Education, the institution must return the funding within 45 days of the R2T4 calculation.

Withdrawals

A student is considered to have fully withdrawn from their payment period if they have dropped all their courses or have reduced their enrollment below the federal student aid course load requirements. The institution is not required to take a scheduled attendance, but it is expected that students receiving Title IV funding are attending all, or at least, most of their courses. If the student intends to reduce or drop all of their courses, it is the student’s responsibility to do so within the university policies and procedures, and for the student to notify the Financial Aid and Awards Service by email.   

Withdrawal date

The University is not required to take attendance as its programs are measured in credits hours. Due to this, the withdrawal date (also known as the date of determination) is established using the following:

1. Official withdrawal date:
   a) The date the student notifies the institution of their intention to withdraw or of their withdrawal date.
   b) The withdrawal date indicated in the student’s uOttawa services center (Enrollment system).

2. Unofficial withdrawal date:
   a) The date the school becomes aware that the student is no longer attending by means of the scheduled enrollment verification reporting or via a notification from the faculty, or;
   b) The last ‘bum in seat’ date that the student was attending their classes or the last date of an academically related activity (i.e., submission of an assignment, completion of an exam, etc.)

Leave of absence

A leave of absence (LOA) is a temporary interruption in a student’s program of study during which a student is not in attendance. This is different than an institutionally schedule break. Students in receipt of Title IV funding via the Direct Loan program who are approved a leave of absence by their faculty, must meet certain conditions for it to be counted as a temporary interruption as per the US Department of Education’s policy.  For an LOA to qualify as approved by federal student aid, it must meet the following requirements:

1. The student must have submitted a leave of absence request form, including the reason(s) for which the student is submitting the request, to their faculty. The request must have been evaluated in accordance with the university’s policy and approved accordingly.
2. There must be a reasonable expectation that they will return to complete their program of study, and resume studies at the same point in the academic program that they began prior to the approval of their LOA.
3. The LOA must not exceed a total of 180 days in any 12-month period.

If the student’s LOA exceeds 180 days in any 12-month period, the student will be considered as withdrawn.

Return of Title IV Funds

The US Department of Education requires the institution to calculate the Return of Title IV funds via the R2T4 worksheet. When a student fully withdraws or falls below the required course load, the university must complete the calculation to determine the earned and unearned portions of the Direct Loans that the student received as of the date that the student ceased their attendance. This calculation must be completed within 30 days of the date of determination of the student’s withdrawal or course load reduction. Students who completed 60% or more of their funded study period, have earned the right to keep 100% of their US Direct Loans. Students who completed less than 60% of their funded study period are required to repay a portion of their loan, as it would be considered as not earned. The unearned funds must be returned within 45 days of the R2T4 calculation.

The R2T4 calculation is based on the following:

1. The number of days the student attended;
2. The number of days in the semester or in the payment period for which the student was granted funding;
3. The total amount of US Direct Loans awarded, accepted and/or disbursed to the student.

Brief explanation of the R2T4 calculation:

• Following a student’s withdrawal, the unearned aid amount will be determined based on the calculation formulas provided by the U.S. Department of Education. This will vary on the date of the student’s withdrawal date.

• Based on the student’s attendance, the percentage of aid earned in any loan payment period will be determined as follows:
  • The number of calendar days completed by the student in the payment period is divided by the total number of calendars days of the payment period excluding scheduled breaks of five days or more, or periods for which the student has been granted a leave of absence.
  • Number of days completed/ total number of days in loan payment period = % of payment period completed
• If the percentage calculated through the application of this formula is greater than 60%, the student is considered to have earned 100% of the approved aid.
• If the percentage calculated through the application of this formula is less than or equal to 60%, the amount of aid that is earned by the student is determined by multiplying this percentage by the total amount of the aid disbursed.
• Total Aid Disbursed x Percentage Completed = Earned Aid
• If the aid already disbursed equals the earned aid, no further action is required.
• If the aid already disbursed is greater than the earned aid, the difference must be returned to the appropriate Title IV aid program no later than 45 days after determining the student has withdrawn.
• Total Disbursed Aid - Earned Aid = Unearned Aid to be Returned

Order of Return of Title IV Funds

1. Unsubsidized US Direct Loan
2. Subsidized US Direct Loan
3. Parent Plus for Undergraduate students
4. Graduate Plus for graduate students

Loans must be repaid by the borrower (student/parent) as outlined in the term of the borrower’s Master Promissory Note (MPN).

Due to this, the University of Ottawa and the student may be required to return any unearned US federal aid received. The university may be required to return funds on behalf of the student by extracting the funding applied automatically to the student’s uOttawa statement of account. If the amount of the loan funds to be returned exceeds any existing credit on the student’s account, the student will owe the funds to the university. The student should repay the outstanding amount to the University of Ottawa as soon as possible. If there is a credit balance on the student account owing to the student, this must be disbursed to the student no later than 14 days after the calculation of the R2T4.

The Financial Aid and Awards Service will send a notice to the student’s uOttawa email address indicating the type and amount of aid returned to the U.S. Department of Education on their behalf. A note will be left in the student’s file with detailed information regarding the calculation and the Title IV funds return.

Students may be eligible for a post-withdrawal disbursement if all the earned loan funds have not yet been paid to them by the time of their withdrawal date. The student will receive a notification email regarding their eligibility for a post-withdrawal disbursement within 30 days of the date that the Financial Aid and Awards Service determines that the student has officially withdrawn. Student will have 14 days from the date of the notification to respond in writing that they will accept or decline all or a portion of the post-withdrawal disbursement. If the student accepts the post-withdrawal disbursement, the funds will be disbursed to the student’s account within 180 days form the date of withdrawal. If the student does not respond within the required 14 days, the university will not issue any post-withdrawal disbursement.

Students that graduate, drop below half-time enrollment and are leaving school, must complete the exit counselling. The point of the exit counselling is to ensure that students understand their loan obligations and are prepared for the repayment period. Students will learn about what the federal student loan payments will look like after their ceased or completed their studies and review the recommend repayment strategies that best suit their future plans and goals. Completing exit counselling is mandatory for recipients of US Direct Loan funding.