Financial Aid Policies and Procedures

Academic Eligibility Guidelines for Financial Assistance Recipients

Updated Policy as of February 2024

The U.S. Department of Education requires the college to establish standards and monitor the academic progress of students receiving Title IV federal financial assistance. Persons receiving any form of Federal, State of Maryland or College financial assistance must meet all 3 of the following standards:

1. Maximum time frame: Students receiving financial assistance must not exceed the maximum time frame for completion of a program of study, which is 150 percent of the length of the student's program. Students are considered to not meet this standard when it becomes mathematically impossible to complete the program within the maximum number of credits outlined below. Credits transferred in from other institutions and credits that are not required for the student's current program of study are also included in the eligibility calculations.

• Associate Degree Completion: Within 90 attempted credits (may vary by program of study)
• Certificate of Completion: Within 45 attempted credits (may vary by program of study)

Students must complete associate degree requirements within a maximum time frame of eight semesters as a full-time student; 11 semesters as a three-quarter-time student; or 16 semesters as a half-time student (four, five, and eight semesters, respectively, for certificate programs). 

NOTE: Students changing academic programs while receiving financial assistance, should be aware that under the financial assistance policy, all attempted and completed credits will be included in the eligibility calculations, not just the credits from your current program of study.

2. Completion Percentage:  Students must successfully complete 67 percent of all attempted credits included on their CSM transcript.  Credits transferred in from other institutions, repeated courses, and credits that are not required for the student's current program of study are also included in the eligibility calculations.
3. Cumulative Grade Point Average (GPA):  Based on the number of credits attempted, students must meet the required minimum cumulative GPA, according to the chart below. Successful completion means a grade of A, B, C, D, or P. Audited classes do not count toward your enrollment status for financial assistance purposes. All attempted credits are factored into the CSM Financial Aid GPA.

The student must have at least a 2.00 cumulative GPA at the end of their 44th attempted credit and after each subsequent credit attempted. 

The student's academic record will be evaluated once each academic year they are enrolled in an Associates Program and at the end of the fall and spring semesters if enrolled in a Certificate Program. The student's cumulative record will be used to determine satisfactory progress, not just the most recently completed semester. Semesters during which the student was enrolled, but did not receive financial assistance, will also be considered in determining satisfactory progress. 

If the student does not meet the minimum standards outlined above, their eligibility for financial assistance will be terminated. Upon termination of their academic eligibility for financial assistance, students will be notified via email and will be provided information on how to submit an appeal to request reinstatement of their academic eligibility for financial assistance.

Financial assistance termination means the loss of scholarship, grant, loan or work-study eligibility until conditions for reinstatement of eligibility are met.  CSM does not allow for a warning period for students who do not meet Satisfactory Academic Progress (SAP) requirements.

Satisfactory Academic Progress Example:

Susan, a freshman at the college, attended full-time (12 credits per semester) during the past academic year.  Her courses appear on her transcript as follows:

*equivalent credit

Susan's Cumulative GPA at the end of Spring 2023 is 1.50.

Thus far in her studies at the college, Susan has attempted 24 credits (12 in the Fall plus 12 in the Spring).  Of those 24 attempted, Susan has successfully completed (received a grade of A, B, C, D, or P) 12 credits.  To calculate her completion percentage, Susan does the following division calculation:

           12 credits completed  =   50 percent Completion percentage
           24 credits attempted

Susan has not met the minimum GPA requirement of 1.75 based on 24 credits attempted and she has not met the minimum completion percentage requirement of 67 percent, and would therefore be considered to be making unsatisfactory academic progress.  Susan would be ineligible to receive further financial assistance until she increased her completion percentage to 67 percent or higher and raised her cumulative GPA to the minimum standards based on the total number of attempted credits.

Appeal and Reinstatement

A student whose academic progress has been deemed unsatisfactory may appeal that determination for not meeting the 67% or minimum GPA requirements only. Documentation of mitigating circumstances claimed by the student may be required. Circumstances that might contribute to an appeal include, but are not limited to, serious illness or injury to the student and/or family member, death of an immediate family member, significant trauma in the student’s life that impaired emotional and/or physical health, or other unexpected, documented circumstances beyond the student’s control. When submitting the appeal, students must explain why they failed to meet the financial assistance academic requirements and what has changed in the student’s situation that will allow them to meet the requirements at the next evaluation. 

To obtain the necessary appeal forms, you will need to consult with a Financial Assistance Department Advisor.  Alternatively, you can download a Satisfactory Academic Progress Appeal Form here. 

Students whose appeals are approved may be required to meet with a CSM Academic Advisor to complete an Academic Success Plan before financial aid eligibility is restored.

Students placed on financial assistance suspension may request reinstatement of financial assistance eligibility in writing (such as email) if they have regained both the required 67 percent credits attempted vs. credits earned ratio and/or have regained the required minimum cumulative GPA. This correspondence is sent to the Financial Assistance Department.

Effect of Transfer Credits, Course Withdrawals, Audits, Incompletes, Repetitions, Academic Clemency, or Non-Credit Developmental Courses on Satisfactory Progress

Transfer Credits:

Any credits transferred in from other institutions will be included in financial aid eligibility calculations. This means that transfer credits will be included in maximum time frame and successful completion percentage calculations. Since transfer credit grades are not included in a CSM transcript, transfer credits will not be included in the GPA calculations.

Withdrawals ("WD" grade):

Withdrawal from a course will be considered unsatisfactory completion of that course, unless, on appeal, there are judged to be mitigating circumstances.

Withdrawals ("WE" grade):

Withdrawal from a course due to extreme circumstances, as defined by a national emergency. This course is not included in financial aid eligibility calculations.

Failure due to non-attendance (“FX” grade):

An FX grade will be assigned to any student in a web, web-hybrid, or face-to-face course who has failed to (or ceased to) engage in academically related activity before the midpoint of the course.  An “FX” grade is used to determine continued financial aid eligibility.  An “FX” grade is treated the same as an “F” grade in terms of GPA, probation, suspension, and academic progress.

Audited Classes ("AU" grade):

Financial assistance will not pay for audited classes. Audited classes are counted toward a student's total number of attempted credits and do count toward the student's completion rate. 

Incompletes ("I" grade):

An incomplete grade will be considered unsatisfactory completion of that course. If the student satisfactorily completes all outstanding work to make up the incomplete grade and later receives a satisfactory grade, the student's financial assistance status will be re-evaluated accordingly.

Definitions of Withdrawal:

Official withdrawal: If the student withdraws from a CSM course, according to the procedures outlined in the CSM catalog, a final grade of WD will be issued, effective the date the student completed the withdrawal process.

Unofficial withdrawal: If the student stops attending all or some of their classes during the term, but does not follow the college procedure for officially withdrawing from classes, the student will receive a grade of FX, effective the date the instructor indicates is the last date the student has completed any academically related activity for the class.

Course Repetition:

Since repeating a course causes the recalculation of the grade average and credits earned on a student's transcript, it may also necessitate the re-evaluation of a student's satisfactory progress. However, repeated courses should not lengthen a student's program of study beyond the maximum timeframe for completion of that program.

Academic Clemency ("AC" grade):

When the college calculates satisfactory academic progress, it includes all grades/classes and does nothing special for academic clemency (AC).

Example: Official CSM transcript has 18 credits, 6 are AC.  The official CSM GPA is determined based on 12 credits, the SAP is calculated on all 18 credits attempted, which includes the 6 credits marked AC.

Non-credit Developmental Courses:

Developmental courses will be considered the same way as any other courses (using their credit equivalencies) in calculating satisfactory progress. Students may not receive financial assistance for more than 30 equivalent credits of developmental courses.

Condition of Awards

A summary of this information is included with the CSM Financial Assistance Notification. It is provided here as a detailed reference. Should you have comments, contact the Financial Assistance Department (FAD). You are encouraged to review the below information in a timely manner during the year so you may be informed of current policy. FAD strives to present the most up-to-date material for this very important topic.

1. Understanding your financial assistance award notification

ENROLLMENT STATUS:

Your financial assistance award notification lists the name of each program from which you have been offered assistance, and the amount of that offer for each semester. "Final" award amounts are based on your enrollment status for a semester. This status is determined at the end of 100% refund date* per class. Please see example under "Academic Credits" below. A change in enrollment status (such as full-time and then dropping to half-time) may affect your financial assistance. Audited classes do not count as completed class credits, but would count as attempted. Enrollment status definition: Full-time, 12 or more credits; Three-quarter-time, 9 - 11 credits; Half-time, 6 - 8 credits and Less-than-half-time, 1 to 5 credits for tuition and applicable fees.

"Summer Semester"

Students attending the summer semester have limited student financial assistance available to them. EXAMPLE: Maryland state awards are not available for this session. Federal Pell Grants are available; however, a determination must be made by FAD staff on the amount. You are urged to contact the FAD office at the campus you attend.

ACADEMIC CREDITS:

Determining the total credits you register for is based on the 100% refund* date per class. If the credits include mini session classes, then the financial assistance determination is "estimated" until the end of the 100% refund date* for the last class. If your enrollment status is less than 12 credits for any semester, your award may be adjusted. Visit my.CSMD to view your awards (once you have logged into myCSMD, use "Online Services," then Financial Assistance > Financial Aid Status by Term). Through "Online Services" you view how award amounts may change based on your actual registered credits.

Example: For the Spring Semester Sue registers for 12 credits. Of the 12 credits, 6 credits are late start classes beginning March 1 and March 25. Her financial assistance is finalized on April 1 which is the end of the 100% refund date* for the March 25^thclass. If she is registered for 12 credits on April 1st, then her financial assistance stands. If she drops the mini session before the end of the 100% refund* period, her financial assistance is adjusted.

REDUCING OR DECLINING YOUR AWARD(S):

If you wish to reduce/decline all or part of the assistance offered you, contact FAD within 15 days of the date on the notification letter. This must be accomplished by writing a letter to FAD. Simply explain to FAD which program(s) you wish to decline (or reduce) and for which semester with a dollar amount. EXAMPLE: You were granted a scholarship for Fall for $600. However, due to class conflicts, you are unable to attend, so you send a letter stating that you wish to decline all $600 for Fall.

HOW YOUR FINANCIAL ASSISTANCE WILL BE APPLIED TO YOUR BILL:

Student Account Services will apply your financial assistance (except Federal Work-Study) to your account for tuition, fees, and books and supplies (unless you specifically state in writing to the Student Account Services office not to). If the type of assistance you receive allows it, unused portions of your financial assistance may be disbursed to you by check to use toward other educationally related expenses.

2. Common types of financial assistance at CSM and the minimum credit load to receive that assistance:

GRANTS

Federal Pell Grant: Pell Grant awards for eligible recipients are based on enrollment status. Awards differ based on whether the recipient is full-time (12 or more credits per semester), three-quarter-time (9 to 11 credits per semester), half-time (6 to 8 credits per semester), or less-than-half-time (1 to 5 credits per semester). Some Pell Grant recipients may lose their Pell Grants for a semester if they do not enroll for the requisite number of credits. Before changing your credit load for a semester, inquire of the Financial Assistance Department what the effect of the change will be on your Pell Grant or other assistance!

Special Note for January session and Summer semester-- Federal Pell Grants: Some Federal Pell Grant recipients (i.e. those students who did not receive full-time Federal Pell Grant awards for both the preceding Fall and Spring semesters) may have eligibility remaining for Summer semester. After you have reviewed the Schedule of Classes for either and determined your class schedule/load for the session/semester, contact FAD at the campus you are attending to determine your eligibility.

Federal Supplemental Educational Opportunity Grant (SEOG): Federal SEOG grants are awarded to at least half-time eligible recipients (at least 6 credits per semester).

• CSM Grant: This grant requires at least half-time enrollment (6 to 8 credits per semester). CSM Grants also require the student to maintain a cumulative grade point average (GPA) above the probation level as defined in the college catalog.
• Maryland State Part-Time Grant: Eligible recipients must enroll for at least 3 credits but not more than 11 credits per semester.
• Maryland Educational Assistance Grant: Eligible recipients must enroll full-time (at least 12 credits per semester).
• Maryland Guaranteed Access Grant: Eligible recipients must enroll full-time (12 or more credits per semester).
  
  

STUDENT EMPLOYMENT

Federal Work-Study: When you are awarded this program, FAD informs you of the steps you must take to be hired in a Federal Work-Study position at the college. You must enroll for at least 6 credits each term in order to continue to be eligible for Federal Work-Study. Students withdrawing from all classes during a semester are no longer eligible for this program. Consult Career Services for wage information and work schedule.

FEDERAL DIRECT LOAN PROGRAMS*

To apply for the Direct or PLUS loan mentioned below, you must do so by: Fall-November 1 and Spring-April 1. This means that all necessary paperwork must be completed and on file at FAD on or before those dates. If not, the loans cannot be processed and you will not receive loan funds. You are encouraged to contact FAD at the campus you attend to make sure you meet these dates.

Federal Direct Loans (subsidized and unsubsidized): As part of your loan application, you have signed a legally binding "Master Promissory Note" promising to repay your loan, which is a legal debt. If you are a first-time borrower under the student loan programs, you must complete a loan entrance counseling session before receiving your first disbursement of loan funds. Further, first-time borrowers will have their first disbursements delayed at least 30 days into the semester. You must be enrolled at least half-time (6 or more credits per semester) to be eligible to receive student loan funds. If you drop below half-time enrollment before your loan disbursement arrives, you will not be eligible to receive it, and your loan will be cancelled leaving you responsible for any charges the loan was intended to cover.

Your educational expenses and the amount of other financial assistance you will receive should determine the amount that you actually borrow.

Federal PLUS (parent)* Loans: Under this program, a parent of a dependent student borrows to help meet the student’s educational expenses. Students must enroll at least half-time (6 or more credits per semester). If the student drops below half-time status before the PLUS loan disbursement arrives, the borrower is no longer eligible to receive the funds, which must be returned to the lender. The student then becomes responsible for any charges the PLUS loan was intended to cover. Some lenders require a pre-certification before approval of the loan. We suggest you contact your lender.

*For both student and parent loans, Student Account Services will notify borrowers by mail when their loan funds arrive at CSM.

OUTSIDE LOANS

The college believes that there are many avenues open to families that may assist them in paying for education. If you use loans to pay for your education, it makes sense to use the Federal Direct Loan Program first. The loan has a relatively low interest rate and some loans of this type do not have to be repaid until after you graduate from college. For families looking beyond these loans, the Financial Assistance Department (FAD) will complete other loan applications only after the student files the Free Application For Federal Student Aid (FAFSA) and FAD determines their eligibility for the Direct Loan program. You must apply for the Direct Loan before FAD completes the outside application.

CSM PERFORMANCE AWARDS (excluding Athletic)

Performance Award recipients must enroll at least half-time (6 or more credits per semester) and must maintain a cumulative grade average (GPA) above the probation level as defined in the college catalog.

CSM ATHLETIC PERFORMANCE AWARDS

Athletic Performance Award recipients must enroll at least full-time (12 or more credits per semester) and must maintain a cumulative grade average (GPA) above the probation level as defined in the college catalog. In addition, Athletic Performance Award recipients receive an addendum to their award letter outlining the additional conditions pertaining to the Athletic Performance Award.

SCHOLARSHIPS

The following scholarships require at least half-time enrollment (at least 6 credits per semester):

• MD Senatorial Scholarship
• MD Delegate Scholarship

To see available scholarships offered by the State of Maryland and to check their requirements, please visit the Maryland Higher Education Commission website.

3. Academic Eligibility and receiving financial assistance: Satisfactory Academic Progress

Eligibility for all federal, Maryland and College financial assistance, except a few outside scholarships, is subject to the college's Satisfactory Academic Progress (SAP) guidelines as outlined here.

4. Withdrawing from classes: Return of Federal Funds
Return of Federal Funds (Pell grant, SEOG, Direct loan, PLUS loan):

Withdrawing from all of your classes (i.e. when you stop attending your classes) before the 60% point of each semester will impact your federal assistance! Federal law may require you to pay back all or a portion of your federal financial aid for withdrawing. This is called Return of Title IV funds (R2T4).

The statutory formula requires the Financial Assistance Department to determine what portion of federal aid disbursed has been “earned” and what portion must be considered "unearned."

Calculation of Title IV financial assistance earned: The college must first determine the percentage of assistance earned by the student at the point in time when she/he withdraws completely. Up through the 60 percent point in time in the term, the percentage of assistance earned is equal to the percentage of the term completed as of the day the student withdraws. If the withdrawal occurs after the 60 percent point, the percentage of aid earned is 100 percent.

Calculation of Title IV financial assistance not earned: The amount of assistance not earned by the student is calculated by subtracting the percentage earned (when less than 60 percent) from 100 percent. That percentage is then applied to total amount of grant and loan assistance that was disbursed for the semester.

Difference between amounts earned and amounts received: If the student has received more grant or loan assistance than the amount earned, the unearned funds must be returned to the Title IV programs by the college or the student or both.

Responsibility of the college: The college must return to the Title IV programs the lesser of the following:

• The unearned amount of Title IV assistance; or
• The institutional charges (tuition, fees, and, in some cases, books) incurred for the semester, multiplied by the unearned percentage of Title IV grant and loan assistance.

Responsibility of the student: The student returns unearned Title IV assistance minus the amount the college returns. The U.S. Department of Education does not allow the college or the student any discretion regarding non-institutional costs. In most cases, when a student receives Title IV assistance greater than the amount of institutional charges, and completely withdraws from the college, he or she will have to return some of those federal funds.

Order in which federal funds must be returned: Whether the college or the student or both must return federal funds, there is a prescribed order as to which federal program receives returned funds first, second, third, etc. That order is as follows:

1. Unsubsidized Direct Loan
2. Subsidized Direct Loan
3. Perkins Loan
4. Direct PLUS Loan
5. Pell Grant
6. Federal SEOG Grant
7. Other Title IV Programs

Time frame in which federal funds must be returned: In the event CSM must return Title IV funds to the Department of Education, these funds must be returned no later than 45 days after the institution has determined the student has withdrawn from CSM.

Time frame and way any post-withdrawal federal funds must be disbursed: In the event CSM determines the student is eligible for additional Title IV funds earned and not yet disbursed at the time of withdrawal, the institution must meet the following deadlines:

• Federal Grants (Pell / SEOG) must be disbursed within 45 days of withdrawal date.
• Federal Loans (Direct Student / PLUS) must be offered to the student within 30 days, allowing the student a minimum of 14 days to respond to accept / decline the loan funds.

All post-withdrawal disbursements will be applied to a student account first, and any resulting credit balance will be disbursed as soon as possible, but no later than 14 days after the calculation of the R2T4.

Return of Federal Funds Example:

John, a freshman at the college, enrolls for the fall semester and incurs institutional charges of $1260. He received a Federal Pell Grant of $1000 and a Federal Direct Loan of $1260. He withdraws from the college after completing 37% of the semester.

1. Percent of unearned Title IV aid:
   100% - 37% = 63% unearned
2. Amount of unearned Title IV Aid:
   $2260 total Title IV aid x 63% unearned = $1424 unearned.
3. Amount of aid the college must return to the Title IV programs:

The college must return the lesser of the unearned amount of Title IV aid ($1424, shown above), or the semester charges incurred, multiplied by the unearned percentage (63%, shown above):
$1260 total semester charges x 63% unearned = $794 unearned

The amount of $794 is the lesser of the two calculated unearned amounts, and the college must return this amount. In accordance with the return of federal funds formula, this amount will reduce the Federal Direct Loan John borrowed for the fall semester.

As a result of this return of funds to the Title IV programs, John will owe $794 to the college for unpaid institutional charges.

4. Amount of aid the student must return: the student must return the difference between the amount of unearned Title IV aid and the amount returned by the college:
   $1,424 unearned aid amount - $794 returned by the college = $630 to be returned by the student.

John will repay $466 of the required $630 to his Federal Direct Loan Program according to the terms of his loan. The remaining $164 John must return is Federal Pell Grant funds, subject to the 50% reduction consideration given to the student; therefore, John will have to return $82 to the Pell Grant program.