Approved Leave of Absence for

Federal Student Aid Programs

 



For Federal Student Aid Programs a Leave of Absence (LOA) is a temporary interruption in a student’s program of study.  LOA refers to the specific time period during an ongoing program when a student is not in academic attendance.  It does not include nonattendance for an institutionally scheduled break in a student’s program.  A Leave of Absence must meet certain conditions to be counted as a temporary interruption in a student’s education instead of being counted as a withdrawal requiring a school to perform a return calculation.  If a Leave of Absence does not meet the conditions in 34 CFR 668.22(d), the student is considered to have ceased attendance and to have withdrawn from the school, and the school is required to perform a Return calculation and notify lenders.


For purposes of Title IV financial aid an institution does not have to treat a leave of absence as a withdrawal if it is an approved leave of absence.  A leave of absence is an approved leave of absence if –


    1. The institution has a formal policy regarding leaves of absence;

    2. At its discretion the institution may allow multiple leaves of absence not to exceed 180 days in one 12 month period..

    3. The institution’s LOA policy must require the student to submit a written request specifying the reason for the LOA.

    4. The student followed the institution’s policy in requesting the leave of absence;

    5. The institution determines that there is a reasonable expectation that the student will return to the school;

    6. The institution approved the student’s request in accordance with the institution’s policy;

    7. The leave of absence does not involve additional charges by the institution;

    8. The number of days in the approved leave of absence, when added to the number of days in all other approved leaves of absence (for the student), does not exceed 180 days in any 12-month period;

    9. The student is permitted to complete the coursework he or she began prior to the leave of absence; and

    10. If the student is a Title IV aid recipient, the institution explains to the student, prior to granting the leave of absence, the effects that the student’s failure to return from a leave of absence may have on the student’s loan repayment terms, including the exhaustion of some or all of the student’s grace period.

    11. A student returning from a leave of absence must resume training at the same point in the academic program and in the same payment period or period of enrollment that s/he would have been in if s/he had if s/he had not been on leave.

    12. The institution may not assess the student any additional institutional charges, the student’s need may not increase, and the student is not eligible for any additional federal student aid.

    13. Since an institution may not assess any additional charges, the institution may not award any additional Title IV aid until the student has completed the coursework in which the student was enrolled when the leave was granted.


If the student does not resume attendance at the institution at or before the end of a leave of absence that meets the requirements of this section, the institution must treat the student as a withdrawal in accordance with the requirements of this section.


When calculating the maximum time frame for a student’s LOA, the school must ensure that it accounts for all periods of nonattendance (including weekends and scheduled breaks).  In addition, since an approved LOA may not be more than 180 days, a school might have to reduce the length of a student’s LOA if the 180th day is scheduled to fall on a day the school would be closed.


A student cannot earn FSA funds during a LOA.


A school may NOT make a disbursement of the proceeds of a FFEL loan to a student on a LOA.


If the student’s situation does not mach the above then PGSP would treat the student’s situation as a Withdrawal instead of the LOA.