Financial Aid Policies

Once students have submitted the Free Application for Federal Student Aid (FAFSA) to the Central Processing System (CPS), there is a possibility that the application will be selected for a process called “verification.” This is an audit/review process in which the student’s school of choice will be required to conduct a file review in order to determine the student’s aid eligibility. Generally, CPS will select the application for verification based on various reasons including conflicting data, a change from the prior year, or due to a random selection process. If the application is selected, an asterisk will appear on the ISIR and Student Aid Report (SAR) next to the Expected Family Contribution (EFC). However, the school’s Financial Aid Office is also authorized to “Institutionally” select applications for verification.

ArtCenter will verify the FAFSA application data of those applicants who are selected for verification by CPS, or by the College. ArtCenter completes verification in accordance with the guidance set forth by the Department of Education’s Federal Student Aid Handbook, as well as any Federal Registers, Dear Colleague Letters, and any additional U.S. Department of Education (ED) guidance related to completing verification for federally selected applicants. ArtCenter will not disburse any aid until the verification process has been completed.

Students who are selected for verification must submit the completed verification forms, along with the required supporting documentation requested such as the IRS Tax Return Transcripts, W-2 forms, etc.

Students are generally first notified of missing information upon receipt of the FAFSA for admitted and continuing students, and thereafter every two weeks via email. Students may also access the Financial Aid Dashboard on Inside.ArtCenter.edu for a list of all required documents to be submitted. Students are encouraged to submit documentation as soon as possible to avoid processing delays. As the file is reviewed, there may be additional requests for documentation as needed. The verification process cannot begin or be completed until all required documents have been submitted.

The list below includes the most common verification items that may be required to be verified on a student’s FAFSA:

Verification Items:

• Adjusted Gross Income (AGI)
• U.S. Income Tax Paid
• Untaxed Portions of IRA Distributions and Pensions
• IRA Deductions and Payments
• Tax-Exempt Interest Income
• Education Credits
• Income Earned from Work
• Number of Household Members
• Number in College
• Identity/Statement of Educational Purpose information

Verification Tracking Groups:    V1, V4, V5

When students are selected for verification by CPS, they are assigned one of the following Verification Tracking Groups (V1, V4, or V5) which determines the items requiring verification.

V1: Standard Verification Group - Tracking Flag V1:

Students and/or parents of students in this group must be verified for the following if they are tax filers: AGI, U.S. Income Tax Paid, untaxed portions of IRA distributions and pensions, IRA deductions and payments, tax-exempt interest income, education credits, number of household members, number in college.

Students and/or parents of students who are non-tax filers must be verified for the following: Income earned from work, number of household members, number in college.

V4: Custom Verification Group - Tracking Flag V4:

Students must verify their identity/statement of educational purpose.

• Identity Verification – Students are asked to appear in person to present their valid government issued photo ID (ex. Driver’s License, State ID or Passport).
• In the event the student is unable to appear in person, then they must appear before a notary with all required IDs and documents to have their identity or educational purpose confirmed.

V5: Aggregate Verification Group - Tracking Flag V5:

Students must verify both their identity/statement of educational purpose (V4), in addition to the items in the Standard Verification Group (V1).

Time period to submit verification documents:

Generally, from the time we send the student the initial notice – Missing Information Letter (email), students are requested to submit required documents within thirty days (30 calendar days). Students will continue to receive subsequent email notices until all requested documents are submitted.

Note: In order to process a financial aid file, all required documents must be submitted and a valid ISIR must be on file prior to the end of the academic year or the student ceasing enrollment. Ceasing enrollment can include withdrawing completely from the term, dropping below half-time enrollment prior to the end of the term, or not enrolling in the following term within the same academic year.

Consequences for Failing to Submit Documents

Documents that are not submitted in a timely manner could result in negative consequences, including:

1. The student’s file cannot be processed due to time limitations.
2. The student will be responsible for paying their tuition and fees out of pocket.
3. The student may incur late payment fees.
4. The student’s outstanding balance will prohibit them from registering for a future semester.
5. The student’s account may be turned over to a collection agency after a period of time.
6. Students who do not respond to any request for documentation from the Financial Aid Office several weeks after enrolling may reflect a “Closed File” status. Please Note: Prior to this occurring a FINAL Notice will be e-mailed to the student’s ArtCenter email address. Normally this does not occur until after the term begins and several attempts have been made to contact the student. Students may reopen their file during the award period upon submission of required documents.

Making corrections to the FAFSA data

Once the student receives their Student Aid Report (SAR) from the Department of Education following submission of their FAFSA, they should review the SAR for accuracy. If changes are needed, the student (and/or parents) should submit corrections to FAFSA online by using their FSA ID and password.

Often times, corrections are required if the requested documentation submitted does not match the FAFSA data. The Financial Aid Office will submit corrections on the student’s behalf. The corrections will be sent to the Federal Processor, CPS, via the Department of Education system. Documents are normally reviewed in the order received so students are encouraged to submit their documents early.

Once all verification documents are received by the Financial Aid Office, the file will be reviewed for accuracy and completeness. Generally, the corrected data is processed and received back in our office approximately 72 business hours after corrected data is submitted to CPS.

If no additional corrections are needed and the student meets all necessary eligibility requirements, then the financial aid will be packaged. An email notification will be sent to the student’s ArtCenter email address informing them to review their financial aid offer letter.

If the student’s EFC and Title IV aid amounts change:

In the event the EFC changes from the initial SAR/ISIR prior to the student being awarded, the offer will be based on the last valid SAR/ISIR transaction.

If the EFC changes after the student has been awarded, the file will be reviewed to determine if additional documentation is necessary or if the changes were made in error.

If the EFC changes result in a change to the financial aid offer, the student will receive a revised Offer Letter Notification via their e-mail address. Students should review their billing statement. If the EFC change reduces the student’s aid eligibility, they will be responsible for paying any outstanding balance owed to ArtCenter. If the EFC change causes an increase in the aid eligibility, the student will be awarded accordingly (e.g., if the student receives an increase to the Pell Grant after their bill was paid in full, the excess will be credited to their student account and a refund generated).

Office of Inspector General (OIG):

Students and parents who willfully submit fraudulent information will be investigated to the fullest extent possible. All cases of fraud and abuse will be reported to the proper authorities (Central Processing Servicer (CPS), Judicial Services, IRS (if applicable), including the Office of Inspector General.

US Dept of Education - Office of the Inspector General 400 Maryland Ave. SW
Washington, DC 20202-1510

In accordance with federal regulations, all degree-seeking students must make Satisfactory Academic Progress (SAP) toward earning a degree as stipulated in the charts below to receive federal financial aid at Art Center. Federal financial aid includes federal grants, federal work study, and federal loan programs. State grant programs and all institutional scholarships have specific criteria to consider.

SAP Evaluation

SAP is calculated at the end of each term. SAP is also calculated at the point when a continuing student applies for aid for the first time as a degree-seeking student.

Both qualitative (cumulative GPA) and quantitative (credits attempted and earned) progress is measured. These measurements apply to all credits attempted and recognized by Art Center for degree consideration from all institutions.

Federal Qualitative Evaluation

Federal Quantitative Evaluation

1. Students meeting the standards above at the time of calculation will be considered in good SAP standing.
2. Students who do not meet the requirements shown above will be put on Financial Aid Warning for the following term. SAP will be calculated again at the end of the warning term. If the student has not achieved SAP status by the end of the warning term, eligibility for federal student aid programs will be suspended.
3. Rules are applied uniformly to all students for all periods of enrollment.
4. Students who are returning to the college after being on SAP Suspension by Enrollment Services will be reviewed by the Financial Aid Office upon re-entry and application for financial aid.
5. Eligibility for financial aid is reestablished after a student improves his/her academic record to meet the minimum standards or an appeal due to unusual and/or mitigating circumstances is approved.
6. Students are responsible for knowing the SAP eligibility criteria and their status at the end of each term. They may contact the Financial Aid Office if questions arise.

Credits Attempted and Credits Earned

1. All courses taken at Art Center applying to the current degree pursuit are counted as credits attempted regardless of the grade earned. This applies to courses withdrawn from after the add-drop period as well as courses for which a grade of F is received. It also includes withdrawals from the college during the term after the add-drop period.
2. Courses transferred from other institutions will be counted toward the maximum total credits attempted to complete degree requirements.
3. Only courses that count toward degree completion and with final passing grades issued by the Office of Enrollment Services will be counted as Credits Earned.
4. Temporary Incomplete, Missing, or Non Attendance grades will be counted as Credits Attempted and not as Credits Earned.
5. Failed courses will count as Credits Attempted and not as Credits Earned.
6. Courses dropped or withdrawn from AFTER Friday of week two (2) of the term will count as Credits Attempted but not as Credits Earned.
   1. Failed courses which are repeated count both times as Credits Attempted and, if passed on the second attempt, one time as Credits Earned.
   2. Passed courses which are repeated count twice as Credits Attempted and Credits Earned.

Changes in Major

For students who change majors, only credits attempted and earned which count toward the new major will be used in the SAP calculation of Credits Attempted and Credits Earned and the maximum total credits allowed.

Study Abroad

All credit hours applicable to the current degree program attempted during Study Abroad terms will count as both Credits Attempted and Credits Earned.

Entering Students

A student with no enrollment history in a degree program at Art Center will enter on SAP good standing and will qualify for aid if otherwise eligible. All work accepted for transfer by Art Center will be included in the SAP calculation.

Returning Students

Returning students will re-enter at the SAP status earned at the end of their last Art Center enrollment term. Students cannot reestablish eligibility simply by taking terms off from ArtCenter. Eligibility for financial aid is reestablished after a student improves his/her academic record to meet the minimum standards or an appeal due to unusual and/or mitigating circumstances is approved

Financial Aid Warning and Suspension

Students who fail to maintain SAP will be placed on Financial Aid Warning for the following term of enrollment. During this time they will remain eligible for financial aid.

If good SAP status is not achieved by the end of the term, they will lose financial aid eligibility and be placed on Financial Aid Suspension.

Regaining Eligibility and Financial Aid Probation

In order to regain financial aid eligibility, the student must either achieve good SAP status while receiving no financial aid or file a successful appeal to regain eligibility. If the appeal is granted, the student will then be placed on Financial Aid Probation.

Appeals and Reinstatement

1. Financial Aid Suspension – If a student’s financial aid is suspended, it may be appealed if unusual and/or mitigating circumstances affected academic progress. Such circumstances may include a severe illness or injury to the student or an immediate family member, the death of a student’s relative, student activation for military service or other circumstances as deemed appropriate for consideration by the SAP Appeals Committee.
2. To appeal, students must submit a completed SAP Appeal Form to the Financial Aid Office. This should explain in detail why they failed to meet the minimum academic standards, what unusual and/or mitigating circumstances caused the failure and how their situation has improved. This form and a detailed academic plan approved by your academic advisor are required to appeal. Not all appeals will be approved. If your appeal is approved, you will be expected to meet the enrollment goals and grades set in the academic plan. In some cases an “extended” academic plan will be required after review by the Financial Aid Office. If we require an “extended” academic plan, you will be notified by the Financial Aid Office to meet with your advisor and complete an extended academic. In all cases we encourage you and your advisor to be realistic when planning your goals as it must be possible for you to regain good progress in order for us to approve your appeal. SAP appeals should be submitted to the Financial Aid Office.
3. Financial Aid Probation - If an appeal is granted, the student will be placed on financial aid probation for one term. Academic progress will be reviewed at the completion of the term. Students who have not met the conditions of the financial aid probation will be notified that they are no longer eligible for federal financial aid. Students must submit an additional appeal with an updated Academic Plan if they wish to be considered for review. Not all appeals will be granted. If the appeal is successful, another financial aid probation term may be granted.
4. Appeals must be submitted no later than 4 pm on the Friday before the beginning of the term for which reinstatement is desired.
5. The SAP Appeals Committee decision result will be sent to the student by postal mail and by electronic mail.
6. Appeal approvals may not be applied retroactively after the end of the term.
7. Appeal approvals will state the conditions and timeframe for maintaining aid eligibility. SAP Appeal Committee decisions are final and cannot be appealed to another source.
8. Students who have raised their cumulative GPAs or course completion rate to equal or exceed the minimum requirements should contact the Financial Aid Office to see if they may be reinstated to good SAP standing.

Institutional Satisfactory Academic Progress (SAP) Time Limitations

There are time limitations on Art Center scholarships for students who entered in Spring 2011 and forward.

Students holding Art Center scholarships enrolled in BFA degree programs are entitled to maintain their scholarships for a maximum of four years or nine semesters.

Students in BS degree programs can hold the scholarship for ten semesters due to the larger credit requirement for graduation.

These specified amounts of time are the normal time frame in which students complete the program or are capable of completing the program.

Entering scholarships may be specified for a shorter time, but unless specified, they are for 4 years or 9 semesters.

Grade Point Requirement

Students must achieve a 3.0 cumulative grade point average each semester to retain their Art Center Scholarship. Students whose cumulative GPA falls below 3.0 are given one ”warning” term and one “probation” scholarship term to bring their GPA back up to 3.0. Failure to bring grades back up will result in the forfeiture of scholarship awards.

For additional information regarding Institutional Scholarship awards, please see full information on Art Center Scholarships and Grants.

• In addition to any state or federal programs for which you may be eligible, ArtCenter can consider you for institutional scholarship or grant funds. These are awards that have a high merit component, and the amount of this funding is limited. We believe that all admitted students are deserving; however, as funding is limited, the scholarship awards cannot be offered to all students, and are a symbol of the highest merit.
• Students who did not receive scholarship on entry or who would like to apply for an additional amount may apply through the Continuing Scholarship Review process. This process currently takes place each term for undergraduate students and the graduate student continuing scholarship review varies. The dates are determined by each individual department.
• Types of scholarships. These include both the College’s own funding and scholarships provided by donors, corporations, and foundations. Students will be considered for both types of scholarships. Beginning Spring 2024, scholarship review applicants will be required to submit the General Application Questionnaire. Recipients of donor scholarships may be asked to create a profile and submit thank-you letters to the donor.
• Merit and Need. Scholarships are awarded based on merit and financial need determined by the FAFSA. Merit is determined by the scholarship committee based on portfolio and academic profile. International and Undocumented students do not need to complete the FAFSA to apply for scholarships.

Scholarship Conditions

• Priority Deadline. Students should meet the FAFSA priority deadline of March 2nd each year and in all cases must have a complete file before a scholarship can be awarded for an upcoming term. Scholarships will not be awarded for a retroactive term.
• Grade Point Average Requirement. Undergraduate students must achieve a 2.5 cumulative grade point average (GPA) each semester to maintain their scholarship. Graduate students must achieve a 3.0 cumulative grade point average (GPA) each semester to maintain their scholarship. These GPAs represent the minimum requirements for remaining in good academic standing with the College. Students whose cumulative GPAs fall below these levels are given one ”warning” term and one “probation” term to bring their cumulative GPA back up to the minimum required levels. Failure to bring grades back up will result in the forfeiture of scholarship awards. Exceptions may only be made through an appeal process with the Financial Aid Office.
• Terms Off. Students cannot take more than two consecutive terms off. This includes time off for internships that are not for credit. In the event that a student takes more than two consecutive terms off, the scholarship award will be forfeited. If the student is good academic standing, the student may appeal for reinstatement of their previous scholarship by contacting the Financial Aid Office before their returning term.
• Duration. There are time limitations on ArtCenter scholarships. Credit requirements vary by major and are subject to change. Students holding ArtCenter scholarships enrolled in BFA degree programs are entitled to maintain their scholarships for a maximum of nine terms. Students in BS degree programs may hold the scholarship for ten terms due to the larger credit requirement for graduation. Graduate students may hold their scholarship for the approved length of their program plus one additional term. These specified amounts of time are the normal time frame in which students complete the program or are capable of completing the program. Entering scholarships are generally held for the time length specified above, unless stipulated otherwise. Students who are awarded scholarship through the continuing student scholarship process will hold the funds no longer than the maximum duration required to complete the program, unless specified for a shorter time. The duration cannot exceed the College’s time limitation policy. A full term is counted as one term, and If a student enrolls in an ArtCenter Lite term, it will be counted as half a term.
• Amounts and Limits. Typically, the amount of ArtCenter Scholarship a student receives cannot exceed the cost of tuition for the term. Scholarship amounts are pro-rated for part-time terms based on the number of units for which students are enrolled. For 6-8 units, students will receive 50% and for 9-11 units 75% of the normal scholarship amount. Scholarships will be disbursed based on the unit total at the end of the Add-Drop period. Scholarships will not be disbursed for students enrolled in less than 6 units.