Aid Refunds Due to Withdrawal

Students who take a leave of absence or withdraw from Otis College may lose all or part of their financial aid. The Office of Financial Aid adheres to the Department of Education Return of Title IV fund calculation.

The amount of earned financial aid may be prorated based on the last day of attendance. Students must complete at least 60% of the semester to earn 100% of the disbursed federal funds. The last date of attendance is confirmed by the Registrar and used as an official withdrawal date.

Returns Are Processed in the Following Order:

  • Federal Direct Loan (Unsubsidized)
  • Federal Direct Loan (Subsidized)
  • Federal Direct Parent/Grad PLUS Loan
  • Federal Pell Grant
  • Iraq and Afghanistan Service Grant
  • Federal SEOG
  • Cal Grant

Note: The Otis institutional aid is rescinded if a student drops all courses prior to completing 8 weeks of the semester. The student is responsible for any outstanding balance caused by the returned funds.

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 Aid
  • $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:

  • $1000 FSEOG
  • $600 Pell Grant

Otis College 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

Mary withdrew after allowable tuition adjustment period (no tuition adjustment after 4th week). Mary's Otis institutional aid is canceled because she withdrew prior to completing 8 weeks. She is responsible for the full amount of tuition charges/fees minus earned aid. The outstanding balance has to be paid at the time of withdraw. 

Contact Us

We're here to help! Have questions about applying for student loans, grants, and scholarships? Contact our student financial services team to get your questions answered.

Phone: 310-665–6999
Fax: 310-665–6884

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