Policies & Procedures

Federal Programs (e.g. Federal Pell Grant, FSEOG, FWS, Federal Direct Loans)

To receive federal financial aid, you MUST:

• Be a U.S. citizen or an eligible noncitizen;
• Have a valid Social Security Number;
• Have a high school diploma or equivalent (e.g. GED, CHSPE, home school graduate—see
• Ability-to-Benefit policy for exceptions);
• Enroll in an eligible program as a regular student;
• Meet satisfactory academic progress standards;
• Not be in default or delinquency on federal education loans, or owe any federal grant money to any institution; AND
• Not be ineligible due to convictions for any offense involving the possession or sale of illegal drugs while receiving Title IV federal financial aid; 

California State Programs (e.g. Cal Grant, California College Promise Grant)

To receive state financial aid funding, the California Student Aid Commission requires that you MUST:

• Be a California resident or have AB-540 status;
• Be a U.S. citizen, eligible non-citizen, or undocumented person with AB-540 status;
• Attend an eligible California qualifying postsecondary institution;
• Be enrolled at least half-time (6 units) to receive the Cal Grant;
• Maintain satisfactory academic progress as defined at school of attendance;
• Have family income and assets below the established ceilings; AND
• Not be in default on any student loan or owe any federal or state over-payments.

At Cuesta College, we're committed to helping every student succeed in their academic journey. As part of this commitment, we want to make sure that students receiving financial aid are making satisfactory progress towards their degree or eligible certificate program. This document provides an overview of what it means to meet Satisfactory Academic Progress (SAP).

Satisfactory Academic Progress (SAP) Standards

As required by Federal and State regulations, students who receive financial aid must maintain satisfactory academic progress (SAP) as they work toward a degree or eligible certificate program. These academic standards apply to all students requesting financial aid, regardless of their prior financial aid history.  These standards may be different from the College’s academic standing standards and apply to all coursework taken whether or not financial aid was received in the past.  

To continue to receive financial aid you must meet all SAP standards as described below.  

• Maintain a 2.0 cumulative grade point average (GPA) – a cumulative GPA combines all the GPAs you have received for each semester to create one overall GPA of your time as a college student;
• Complete 67% of all units attempted; and 
• Complete a financial aid eligible educational program within 150% maximum time frame (MTF). 

At the end of each semester, including summer, SAP standards are used to monitor and calculate students’ eligibility for financial aid. Meeting SAP standards means students are in good standing for financial aid.  

Explanation of Standards

• Qualitative GPA - Maintain a 2.0 Cumulative Grade Point Average (GPA) 

After grades are posted at the end of the semester, the overall cumulative GPA is used to determine eligibility.  A, B, C, D, and F grades are used in the calculation.  P (PASS) and NP (NO PASS) grades are not used in the calculation.  

• Quantitative Completion Rate - Complete 67% of All Units Attempted 

In addition to the GPA calculation, total unit completion is used to determine eligibility.  A, B, C, D, F, W, FW (Fail to Withdraw), P (Pass), NP (No Pass), I (Incomplete), RD (Report Delayed), or MW (Military Withdrawal) grades are used to calculate completion rate.  The formula used to calculate completion rate is: Total Units Earned ÷ All Units Attempted = Unit Completion Rate  

• Maximum Time Frame (MTF) - Complete a Financial Aid Eligible Educational Program within 150%

Financial aid eligibility is limited to 150% of a financial aid eligible educational program. Cuesta College is a two-year community college where most associate degree and transfer programs can be completed within 90 units.  Units vary for certificate programs.  For specific details and a helpful chart illustrating how we calculate maximum time frames, please refer to the formula and chart below.

Formula:  Number of units required for program x 150% = maximum time frame units

*Certain certificate programs (e.g. nursing) require more than 24 units to complete and this higher amount will be used to calculate eligibility in the SAP review process. In some cases, however, an appeal may still be requested in order to document eligibility.

This means that student can receive financial aid for up to a maximum of 90 units attempted, which is derived from multiplying the standard 60 units by 150%. On a case-by-case basis, students may be allowed to receive financial aid beyond the maximum time frame. This could occur if there's a change in major or if a degree or transfer program requires units exceeding the standard 90 units. 

We want to empower students to navigate their educational journey successfully. That's why we encourage students to schedule a meeting with an academic counselor to develop a comprehensive Full Educational Plan. This plan will help ensure students are on track with their financial aid eligible educational program. 

To ensure that a student is making progress towards their financial aid eligible educational program, they are advised to start incorporating coursework that is applicable to their educational goal. Choosing the right classes tailored to their educational goal is crucial, as simply passing courses with a high GPA doesn't guarantee completion within the 150% maximum time frame. Taking courses that are not required for the desired degree may impact a student’s eligibility for future financial aid. 

Other Provisions

ESL and Remedial Coursework

English as a Second Language (ESL) coursework does not count toward remedial units; however, the units do count toward maximum timeframe. ESL coursework must be part of an eligible program of study to receive financial aid. When assessing a student’s overall GPA and completion rate, academic progress in ESL courses will be taken into account.

Financial aid can be received for remedial courses if the courses are prerequisites for entrance into a financial aid eligible educational program. Financial aid cannot be received for more than 30 attempted units of remedial courses.

Repeated Coursework

Federal regulations allow students to receive federal student aid for one repeat of a previously passed course. A grade of D or better is considered passing. W’s do not count as repeats. If you attempt a class for the third time after previously receiving a passing grade in that course, you will no longer be eligible for payment for those units in you previously received Title IV funding for the course. All repeated courses do affect Satisfactory Academic Progress (SAP) calculations. Grades of A, B, C, D, P are considered passing grades for financial aid purposes. If a student gets a “F” in a course, they are allowed to repeat the course and receive financial aid (assuming they meet Satisfactory Academic Progress and meeting all other eligibility requirements) until they receive a “D” or better.

Transfer Coursework

All units attempted at Cuesta College, and transfer coursework from any prior college/university that is officially submitted and evaluated by Admissions, Student Records & Registration is included in the SAP calculation.

Grade Changes

The Financial Aid Office will recalculate student eligibility due to grade changes at the next semester’s SAP evaluation.

Under federal regulation, the Financial Aid Office has the authority to take actions such as placing a student on warning, probation, or suspension, if a student’s academic history shows a pattern of inability or lack of progress. This might include multiple withdrawals or enrollment inconsistent with the student’s educational objective. If a student’s grades are not yet posted, any financial aid award offered is tentative until the academic record is reviewed. 

Definitions of Satisfactory Academic Progress:

Financial Aid Satisfactory

At the end of each semester, including summer, the student is meeting satisfactory academic progress standards.

Financial Aid Warning  

At the end of each semester, including summer, if a student does not maintain and meet SAP standards (GPA and completion rate), they will receive a "Warning" notification. The “Warning” status is only a forewarning message, encouraging the student to improve their academic progress so that they can maintain their financial aid eligibility and continue to receive aid.  Warning status lasts for one semester only, during which the student may continue to receive Federal Student Aid funds.  Please note, MTF will not receive a warning, once you reach 150% of your educational goal students are ineligible.

Financial Aid Suspension (Unsatisfactory) 

If a student did not improve their academic progress by the end of the warning period or reached MTF, they will lose federal student aid eligibility and will go on to suspension status. Students have the option to submit a Satisfactory Academic Progress (SAP) Appeal for review or continue without financial aid until they meet SAP standards. It is important to note that submitting an appeal application does not guarantee a student’s financial aid will be reinstated.             

Financial Aid Probation 

If a student’s financial aid eligibility is reinstated through an approved appeal, they will be placed on “Financial Aid Probation.”  If a student does not make satisfactory academic progress during the probation semester(s) or meet the conditions outlined in their academic plan, they will be disqualified from receiving financial aid for future semesters.  Approved appeals will place students on probation for a specific number of semester(s), based on the Comprehensive Student Education Plan (CSEP) on file with our academic counselors when the appeal is approved.  If a student does not return to good standing or finish their studies after the specified number of enrolled semesters, they will be disqualified from further financial aid.

Financial Aid Disqualified

If a student was on Financial Aid Probation and did not meet satisfactory academic progress during the probation semester(s) or meet the conditions outlined in their academic plan, they will be disqualified from receiving financial aid. A student who is disqualified can submit a SAP Appeal only if there is a catastrophic extenuating circumstance. 

SAP Appeal Process  

We understand that unexpected circumstances can arise, which is why the Financial Aid Office has established an appeal review process based on extenuating circumstances. This process follows federal guidelines to fairly determine if a student can be reinstated for financial aid. The Financial Aid Office may request additional documentation during the review process to ensure accuracy and fairness.  While the appeal is in the review process, students should be prepared to pay for their educational expenses, including required books and materials, using their own resources. 

An SAP appeal application must be submitted within the semester the student is requesting aid eligibility. The last day to submit an SAP appeal application for any given semester is 3 weeks before the final day of classes for that semester. SAP appeal application that are submitted after a semester end will only be considered for the next semester. We cannot review retroactive appeals. A student can expect to receive a decision on their SAP appeal via email within 45 days from the date of submission, provided the appeal application is complete. Submitting an SAP appeal application does not guarantee reinstatement of financial aid.  

Extenuating Circumstances Appeal

If a student becomes ineligible due to a cumulative GPA below 2.0 or a completion rate under 67% because of extenuating or mitigating circumstances, they have the option to submit an SAP Appeal Packet. This packet should include a detailed explanation of the extenuating circumstances that led to their inability to meet SAP standards as well as the steps the student plans to take to address these issues and meet SAP standards in the future. The packet should also include supporting documentation of these circumstances. This documentation should specifically cover the semester(s) during which progress was lacking and must align with the written explanation provided.

If a student is unable to obtain documentation for extenuating circumstances, they may be required to sign a statement affirming the veracity of the special circumstances cited as the basis of their appeal. Determination may also take into account various factors such as Federal and State regulations, the student’s ability to meet SAP standards, their academic and financial aid history, and the clear presentation and documentation of their extenuating circumstances. 

Situations in which a student may be eligible for an Extenuating Circumstances Appeal and may be supported by documentation include:

• Death of a relative or significant person
• Personal illness or injury, including, but not limited to mental health conditions, affecting either the student or a relative or other significant person
• Pregnancy or birth of a child
• Experiencing homelessness
• Disruption/loss of childcare arrangements
• Job loss or change in employment status
• Unforeseen challenges in personal or public transportation access
• Being a victim of a serious crime, including, but not limited to, domestic abuse, even if unreported or did not result in criminal prosecution or civil liability
• Impact of a natural disaster 

Maximum Time Frame (MTF) Appeal

A student who is suspended due to maximum time frame is not required to submit supporting documentation or demonstrate extenuating circumstances. Instead, the student will need to complete an SAP Appeal Packet, which should include a clear statement addressing the following:

1. Why you have attempted more than 150% of your educational program?
2. Why were you unable to maintain SAP and complete your educational program within 150%?
3. Why do you need more time to complete your educational program?
4. Why did you/need to change your major? What steps have you taken or will you take to achieve and maintain SAP in completing your educational program? 

Reasons a student may be eligible for a Maximum Time Frame Appeal: 

• The student has reached 90 attempted units or exceeded 150% of their educational program, particularly if enrolled in a high unit major
• The student changed their academic program; the change of academic program will be considered on a case-by-case basis
• The student has reached the maximum time frame of attempted units, but a portion of the unit total includes remedial coursework, which would reduce the total attempted units. 

Note:  The change in degree or major, even under extraordinary circumstances is not considered sufficient reason for exceeding the 150% limit.  If the appeal is approved, the student may receive financial aid on probation until they complete their degree.

Second Level SAP Appeal

The Second Level SAP Appeal process is for students who were denied a SAP Appeal during the current semester. Second level appeals are reviewed on a case-by-case basis. To move forward with a second level appeal, the student must include additional justification and/or supporting documentation that were not originally included in their SAP appeal application. 

SAP Appeal Decisions:

Appeal Approved: If an appeal is approved, a student will be placed on Financial Aid Probation. During this period, the student will need to meet SAP standards by the end of the Financial Aid Probation period or fulfill the conditions outlined in their academic plan. The notification sent to the student will include the specifics of their probation. To maintain eligibility, the student will need to continue meeting the terms and conditions of the appeal approval after each semester. 

If the student successfully fulfills the conditions of their probation and regain SAP eligibility, their SAP status will be updated to Satisfactory. If the student in unable to fulfill the conditions of the probation approval it will result in Financial Aid Disqualification.

Appeal Denied: If an appeal is denied, students can regain eligibility by meeting SAP standards or they can request a Second Level SAP Appeal. 

A Second Level SAP Appeal is for students who were denied an SAP Appeal and are providing additional justification and/or supporting documentation not originally included in the SAP Appeal application. The second level SAP appeal decision is final. If the decision is to uphold the denial, the student will not be able to submit an additional appeal until the next semester. The student may also regain eligibility for financial aid by meeting the SAP standards.

SAP Appeal Application:

A complete SAP appeal application includes the following:

1. The SAP Appeal Form
2. A clear, personal statement detailing the reasons for not meeting SAP standards, including a plan of action outlining the steps what will be taken to meet SAP standards
3. A completed online SAP workshop; this is required. With their application, the student needs to submit the completion certificate to show successful participation and completion of the workshop.
4. A Comprehensive Student Educational Plan (CSEP) developed by an academic counselor. The CSEP must outline all necessary courses required to complete the student’s studies at Cuesta, and a timeline indicating when those courses will be taken.

Disclaimer:  While we strive to provide accurate and up-to-date information, legislation and governmental regulations regarding student financial aid are constantly evolving.  As a result, the details presented in this document may change without notice.  For updates, we encourage you to visit the College website and click on Financial Aid.  

Students enrolling for the first time after July 1, 2012 must have a High School Diploma, GED or state equivalent to be eligible for any federal financial aid. Students no longer have the option to pass an ATB test or to successfully complete 6 core/degree applicable units to gain eligibility for federal financial aid.

Students who completed six degree-applicable units in an eligible Title IV program (or who passed an ability-to-benefit (ATB) test) prior to July 1, 2012 are still eligible to receive federal financial aid provided they meet all other eligibility requirements.

The federal government sets guidelines for determining whether a student is dependent or independent.  Dependent students must include both their own income as well as the income of their parents (by blood or adoption) when filling out the FAFSA. 

If you are at least 24 years old, you are considered an independent student and do not have to provide parental income and asset information. 

If you are younger than 24, you may still qualify for independent status if you are:

• Legally married on the day the FAFSA was filed;
• The parent of a child for whom you provide more than half of the support they receive;
• Living with dependents for whom you provide more than half of the support they receive;
• An orphan (both natural parents are deceased);
• A ward or dependent of the court (or were until age 18);
• A member of the U.S. Armed Forces currently serving on active duty for purposes other than training;
• A veteran of the U.S. Armed Forces;
• A foster youth (in a foster youth program sometime after the age of 13);
• An emancipated child as determined by a court judge; OR
• Homeless or at risk of homelessness as determined by the director of a HUD approved homeless shelter, transitional program, or high school liaison.

If none of the above criteria applies, you are a dependent student even if you claim yourself on your taxes.  

If you are a dependent student and your parents refuse to provide parental information on your FAFSA, you have two basic options for receiving financial aid:

1. Request a Federal Direct Unsubsidized Loan for dependent students without parental support by filling out the appropriate form and submitting it to our office.  
2. File for a dependency override. If successful, we will calculate your eligibility based on your income alone.

The Financial Aid Office has the authority, through Section 480(d)(7) of the Higher Education Act, to change a student's status from dependent to independent in cases involving unusual circumstances.  We call this process a “dependency override.” 

Circumstances that merit a dependency override:

• Abusive family environment (e.g., sexual, physical, or mental abuse or other forms of domestic violence);
• Abandonment by parents;
• Incarceration or institutionalization of both parents;
• Parents lacking the physical or mental capacity to raise the child;
• Parents hospitalized for an extended period;
• Unsuitable household (e.g., child removed by court action) AND/OR
• Any other situation that the Financial Aid Office deems worthy of independent status, see those excluded by regulation (see below).

 
Circumstances that do NOT merit a dependency override

• Parents refuse to contribute to the student's education;
• Parents are unwilling to provide information on the application or for verification;
• Parents do not claim the student as a dependent on their taxes; OR
• Student demonstrates total self-sufficiency.

To petition for a change to your dependency status, request a Dependency Override Form for the academic year in which you would like financial aid.  

Verification is a process used to confirm that the information you provided on the Free Application for Federal Student Aid (FAFSA) is correct.  

Who selects student for verification and why?
The U.S. Department of Education selects students for verification based on a number of undisclosed factors, including random selection.  The purpose of verification is to make sure that the data on the FAFSA used to calculate eligibility are correct.  It does not mean that you have done anything wrong; it just means that the government would like to double-check the information you provided.

Cuesta College Financial Aid Office may also select students if they find conflicting or missing information in their application data.

The Verification Process
In order to confirm the information on the FAFSA, we will ask you to provide specific types of documentation that supports your entries.  This documentation may include tax information, personal statements, benefits summaries, and other information necessary to calculate your financial need properly.  If you are a dependent student, we may also request these kinds of information from your parents.

Once we confirm your FAFSA data is correct, we will finish awarding and packaging your file. If we find differences between the data on your FAFSA and the documentation you provide, we will use the latter to make corrections to your FAFSA.  Once the federal government has received and processed those corrections, we will finish awarding and packaging your file.

Note: occasionally students may be selected for verification by the Department after they have already been paid financial aid. If that happens, we will give you 30 days to provide documentation, otherwise you will be responsible for returning all Title IV financial aid you received to the government.

Verification Deadlines
The verification review process can be lengthy, so we recommend that students submit all requested documentation within 14 days of our request. You can submit most materials online.

By regulation, you must submit all verification documents by the earlier of:

• 120 days after your last date of enrollment for the award year in question; or
• The annual deadline published in the Federal Register—usually a date in late September.

However, please note: Because other program-specific and cash management rules apply, meeting the deadlines above does not guarantee that your awards can be processed. For example, we cannot originate student loans after a student’s last date of enrollment regardless of when they submit their verification documentation.

Submitting your verification documentation before the school year starts or while you are still enrolled will generally have better results.

Unlike verification documents, all professional judgment appeals (e.g. dependency override, SAI adjustment, cost of attendance adjustment, unusual enrollment, etc.) must be turned in by the last day the academic year.

Federal Work-Study (FWS) is a federal need-based student employment program funded by the Department of Education in which students earn funds. The FAFSA determines a student’s financial need, and therefore, a student's eligibility.

Federal Work-Study Eligibility Criteria:

A student must meet the following criteria to be eligible for Federal Work-Study:

• Complete a FAFSA
• Meet financial need as determined by FAFSA
• Be enrolled in a minimum of 6 units, half-time, per semester
• Maintain Satisfactory Academic Progress 

 

Course Program of Study (CPOS) is a Federal Regulation that requires Federal Aid to be paid for courses that count in a students' educational program.

The Financial Aid Office reviews courses a student is enrolled in for the current semester against what a student has to complete in their educational program as shown on the myCuesta pathway worksheet for their specific degree. 

 
Questions & Answers:

What type of Financial Aid does CPOS impact?
CPOS only applies to Federal Financial Aid (e.g. Pell Grant, SEOG Grant, Direct Loans, PLUS Loans, etc.). It does NOT impact eligibility for state or institutional financial aid (e.g., Cal Grant, CCPG, Cuesta Scholarships etc.).

How and when will I know if I am impacted by CPOS?
You will receive an email within 3 days of registering if you have a course that does not count in your educational program. You will receive an email every 10 days as long as you remain enrolled in a course that is not counting in your program. If you no longer wish to receive these emails, send a message to finaid@cuesta.edu. 

What should I do if I’ve been notified that one or more of my courses doesn’t count in my program of study (declared major/minor)?

You should review your myCuesta pathway to see what classes are not counting in your program. Contact the Financial Aid Office or consult with an academic counselor to consider an appropriate course of action (adding a required course, dropping the ineligible course, or remain enrolled in the ineligible course). 

What if I remain enrolled in courses that are not in my program of study and are not listed on my CSEP?                          

Your Federal aid will be affected and you may receive less than you were expecting. 

Can classes get added to my CSEP so I can be in 12 units and considered full time for financial aid purposes?                                      

No, only classes that count in your program can be added. If you are not full time for federal aid, you may receive other aid that is not affected (e.g., Cal Grant, CCPG, Cuesta Scholarships etc.).

What if courses that are needed for my degree are added to my CSEP?              

On occasion there are courses a student's needs to take for transfer or degree completion and a counselor will list these on a comprehensive education plan (CSEP). The Financial Aid Office will then make overrides on a student's account so the courses will count as eligible/needed. The financial aid office will review this information on a weekly basis. Courses would need to be added prior to the Financial Aid freeze date.

What happens if I change my major after the freeze date?

You may not receive any additional aid for the semester, because your classes may not count towards your program. If you have received all of your aid for the semester, you may be subject to R2T4.    

What if I have transcripts from another college?

You should make sure they are on file and evaluated by Admissions, Student Records & Registration and having a counseling appointment prior to the semester starting to make sure your aid is not affected. 

For need-based aid programs, the amount of financial assistance that you can receive is limited to your cost of attendance (CoA) minus your student aid index (SAI).  As a result, your CoA is an important part of your award calculation and it is influenced by your residency status and level of enrollment. 

Budget Components

Budgets are based on the California Student Aid Commission’s (CSAC) annual student expense budgets which use figures from a student expenses survey that have been adjusted for inflation or deflation.

CSAC provides figures for the following categories:

• Books and supplies (understood to include course material fees);
• Room and Board;
• Transportation; and
• Personal / Miscellaneous charges;

Four categories are left for Cuesta to determine: tuition/fees, out-of-state tuition, child/dependent care expenses, and loan fees.

Tuition and Fees

Tuition and fees are calculated for each enrollment category on the basis of the average student enrollment in the fall semester of the prior aid year. 

Additional mandatory fees, such as health fees, are totaled before considering units to allow reasonable room for potential mixed enrollment issues. 

Prior to the aid year, we assume all students are coming full-time. We will check enrollment on the financial aid freeze date and assign students to the appropriate category (and adjust the budget) based on the number of units for which they are registered.  In subsequent terms, we will increase the tuition/fees allowance if the student has moved to a higher enrollment category.

Out of State Tuition

Out-of-state students will pay an additional out-of-state tuition amount that is based on the average enrollment in the fall semester of the prior aid year.

Child/Dependent Care

If a student is providing more than half of the support for a child or other dependent, any care costs can be considered as an additional budget component. This category is limited to reasonable expenses with adequate documentation provided by the students, depending upon the age and number of children involved.  If a student wants to include this category in their cost of attendance, they must initiate the process by requesting an SAI Adjustment Appeal 

Loan Fees

If a student is receiving a loan as part of their financial aid package, the cost of attendance must be adjusted to account for loan fees charged in that process.  Cuesta College uses a single value for all students in this category: the rounded value of the loan fees paid in the previous year by an independent first-year student who maximizes both subsidized and unsubsidized loans.  For 2024-25, this amount will be $100.

Other Term Lengths

If a student attends term combinations other than the standard Fall/Spring, our system will use a multiplier to adjust budget components that aren't related to your level of enrollment. For example, students who attend fall, spring, and summer will have costs recalculated by multiplying them by 1.3333.  Tuition and out-of-state fees which are calculated by unit load will continue to use the values posted above. 

Less-than-Half-Time Enrollment

If a student enrolls in less than six units, the cost of attendance used to calculate Pell amounts is the standard nine month Pell cost of attendance minus the budget components for room/board and miscellaneous expenses. 

Federal regulations allow students to receive federal student aid for one repeat of a previously passed course. A grade of D or better is considered passing. W's do not count as repeats. If you attempt a course for the third time after previously receiving a passing grade in that course, you will no longer be eligible for payment for those units if you previously received Title IV funding for the course. All repeated courses do affect Satisfactory Academic Progress (SAP) calculations. Grades of A, B, C, D, P are considered passing grades for financial aid purposes.

If a student gets an 'F' in a course, they are allowed to repeat the course and receive financial aid (assuming they meet Satisfactory Academic Progress and meeting all other eligibility requirements) until they receive a 'D' or better.

If you are borrowing for the first time through the Federal Direct Loan Program, you must complete entrance counseling before we can disburse your loans.

Cuesta College has developed an online loan workshop intended as an enhancement to the federal loan counseling available online at www.studentloans.gov. First-time borrowers must complete both counseling sessions before they can receive a Direct Loan at Cuesta College.

If you have borrowed before, you are encouraged (but not required) to complete Cuesta’s online workshop.

Federal Direct Loan Exit Counseling

If you drop below six units enrollment, graduate, petition to graduate, or leave Cuesta College (even if you plan to transfer to another school), Cuesta will flag you as someone who needs student loan exit counseling. 

We will send you an email to your Cuesta student email address within three weeks of this flag being set that will provide you a link to the exit counseling on the studentloans.gov site. When you receive that notice, you must do the following:

• Log onto www.studentloans.gov and choose the exit counseling option;
• Complete exit counseling; AND
• Update your contact information;   

Student loan exit counseling helps you understand your rights and responsibilities as a student loan borrower.  Completing this process will help inform you of your options and give you the means to ensure that you avoid going into default. Defaulting on a student loan has serious consequences including poor credit ratings, loss of repayment option, wage garnishment, and legal action.

If you have any trouble making payments, contact your servicer immediately! If you do not know who your server is, log onto www.nslds.gov or contact The Financial Aid Office and we’ll help you find that information!

Aid Adjustments due to Special Circumstances
 

When you fill out the FAFSA or CA Dream Act Application, we use the income data you provide to calculate your student aid index (SAI).  We calculate your unmet need by subtracting the SAI from your cost of attendance (COA).  Your unmet need forms the basis for eligibility and amount determinations for funds like the Federal Pell Grant, Federal Direct Subsidized Loans, and the California College Promise Grant (CCPG). 

However, you may find that you (and/or your parents’) income in the current or prior year is lower than what you earned in the base tax year that the FAFSA/CADAA uses.  Some examples of these special circumstances include:

• a major change in employment or layoff;
• divorce after the original application was filed;
• death or disability of a wage earner;
• loss of benefits;
• unusually high paid expenses (e.g. medical bills, child care, child’s tuition);

You have the ability to file an appeal to have your SAI or Cost of Attendance adjusted to reflect your unique situation.  You can do this by requesting an SAI Adjustment Appeal and using the personal statement to explain your special circumstance. Of course, you can always contact the Financial Aid Office if you need help completing the process. 

SAI Adjustments

Before your need can be recalculated, your current income data will need to be verified.  To verify that data, you must provide us with the signed IRS Tax Return for the tax year that matches your completed FAFSA/CADAA application for the current year or prior year that you are enrolled in. 

Please note:

• We review requests on a case-by-case basis and there is no guarantee that we will adjust your income information.  We will not approve any special circumstance request that would result in reducing your unmet need.
• The documentation that you would provide is either your current year tax data when you file, or prior year data. Whichever is more beneficial to the student.
• If the special circumstances request involves a non-income item in the base year (such as an IRA rollover or expensive medical bills), the request can be reviewed and approved without having the next year’s tax return transcript.
   

Adjusting Cost of Attendance

The Financial Aid Office are able to adjust your cost of attendance if your situation warrants it.  This ability is helpful when students have financial aid that exceeds their cost of attendance.  The appeal process is the same with SAI adjustment: request an SAI Adjustment Appeal on our document site. Be sure to provide a good explanation of your situation as well as documentation of your additional expenses.

Note: We can add your child and dependent care expenses to your cost of attendance if you provide adequate documentation to allow the Financial Aid Office to determine your expected expenses for the aid year in question. Again, this is only beneficial if you have no unmet need left and want to make space for an additional amount of financial aid that you have been award (e.g. your student loan was reduced to keep your total financial assistance under your cost of attendance).

Restrictions

You must have filed your FAFSA/CADAA and designated Cuesta College to receive the information before your last day of enrollment in the aid year. Professional judgment cannot be used to waive general student eligibility criteria or circumvent the intent of the law or regulations governing financial aid administration.

Deadlines

All appeals involving professional judgment (SAI adjustments, CoA adjustments, and dependency overrides) must be submitted by the last day of the academic year.  Be aware that rules on late disbursement may prevent you from obtaining funds if you wait too long to submit your appeal. 

The Federal Supplemental Educational Opportunity Grant (FSEOG) program provides assistance to exceptionally needy undergraduate students. 

Selection Process

Cuesta College receives a limited amount of funds for the FSEOG program each year and follows the process below to select students for awarding.

By regulation, FSEOG grants must first be awarded to the students with the lowest student aid index (SAI) who are also receiving a Federal Pell Grant. This is known as the "FSEOG first selection group."

Cuesta College awards FSEOG to those students who have a zero SAI and a Federal Pell Grant. If we have more students than funding, we use a random sort in the process. If all eligible students have been awarded and FSEOG funds remain, Cuesta College will award FSEOG to other Federal Pell Grant recipients starting with those who have an SAI of 1, then those with an SAI of 2, and so on until all Federal Pell Grant recipients have been awarded.  

Should Cuesta College award FSEOG to all students who received a Federal Pell Grant, it may then award students with the lowest SAIs who are not receiving a Federal Pell Grant.  This is known as the "FSEOG second selection group."  

How We Disburse Aid

While we award and disburse financial aid by semester, there are different disbursement rules for each type of aid. General disbursement rules:

• We disburse federal grant aid (Federal Pell Grants and SEOG) the week before classes when possible. If it is not possible for a certain semester to disburse the week before classes, the disbursement will take place in the first week of the semester. If a program requires a second disbursement in a term (e.g. Federal Pell Grants), the second disbursement may occur in the midpoint of the term.
• Paid prior to school starting. If you are paid the week before school starts and you remove registration from all classes, you will be required to pay the full amount of Financial Aid that was disbursed to you. This is not subject to the Return to Title IV fund rules, because attendance never occurred. You will be notified to your myCuesta email if funds are pulled back.
• Pell Grants can only be received at one institution. If you receive Pell elsewhere, your award here may be cancelled and you will have to pay back the amount you received.
• We do not permit any advances. Application review, verification (if the student is selected), and awarding of aid must be completed before we will disburse aid.
• We disburse aid directly to a student's Cuesta College account first (except work-study payroll checks). The Cashiers Office will pay any eligible charges before refunds are processed.
• We make awards with the assumption of full-time enrollment (12 or more credit hours). If you drop classes before the “freeze date,” Cuesta will bill you for the portion of enrollment-based awards.   
• If you add classes after the “freeze date,” they will not count towards your unit total when calculating your award amount.  Enroll in classes as early as possible.
• Classes have to have begun in order to include the units for financial aid purposes. Late-start classes, for instance, will not count towards the 12 units until they have begun.  
• Enrollment levels are the same in all semesters at Cuesta College.  For financial aid purposes, full-time enrollment in summer is considered to be 12 credits just like it is in fall and spring.
• We disburse aid on Tuesday of every week. With the exception school closures and federal holidays that land on a Tuesday. Aid is not distributed the weeks of Spring Break, Thanksgiving, and Christmas. Disbursement dates are available on your myCuesta student portal.

BankMobile Disbursements

Cuesta College delivers your refund through BankMobile Disbursements, a technology solution powered by BMTX, Inc.

Rolling Adjustments and Unit Requirements

The aid you receive may vary from award amounts for many reasons, including a change in enrollment status, late start enrollment for courses, loan fees, and/or a change in basic eligibility.

Award amounts will fluctuate as you add and drop classes, but we make a final adjustment on a financial aid census date known as the “freeze date.”  This date is usually on the fifth Monday of the term. You will be frozen once you have a financial aid application on file and have been packaged. We ignore any fluctuation in enrollment that occurs after the freeze date, and any registration that takes place after the freeze date will not result in additional credits towards the semester total for financial aid purposes.  Note: If you are not enrolled & packaged when we run our freeze, we will freeze your enrollment on the Monday after you register for a class and have been packaged. 

Most programs have an enrollment requirement or prorate amounts based on enrollment. The following programs have set requirements:

• Federal Pell Grants
  • Maximum award if enrolled in 12-degree applicable units, otherwise prorated.
  • Less than half-time enrollment (0.5 – 5.5 credits) uses a different cost of attendance, so some Pell recipients will not qualify for aid for this level of enrollment.
• Federal Direct Loans
  • Student must be enrolled in six-degree applicable units to be awarded and all six units must have started before disbursement can be made.
  • First-time borrowers have a 30-day delay from the first day of enrollment to their first disbursement.
• Cal Grants
  • Maximum award if enrolled in 12 units, prorated amounts for three-quarters and half-time enrollment
  • No eligibility if enrolled less than half-time (0.5 – 5.5 credits)
  • Additional SSCG awarded if enrolled in 12+ units
  • Additional SSCG awarded if enrolled in 15+ units 
     

Cal Grant and Student Success Completion Grant payments

We will pay all Cal Grant funds after the freeze date so that we can define the proper enrollment status of the student prior to payment. 

Late start classes

We disburse many kinds of aid in increments based on enrollment.  Students may receive only a partial payment in the beginning of a semester if they enrolled in late start classes. 

For example: Bob registered for 4 classes–each worth 3 credits–making him a full-time student in fall. Three of his classes (9 credits) begin on August 20 and the other class starts October 1.  In this case, Bob will only receive aid for 9 credits at first. The remaining financial aid will not be disbursed until the student begins the other 3 credits on October 1.

Stale-Dated Refund Policy

Cuesta disburses your funds to BMTX, Inc. according to the rules listed above. If you do not claim these funds and you are still eligible to receive them, we will continue to attempt to give you these funds for 240 days from the date of the original disbursement. After that date, we will modify your award and return your funds to their source.

If BMTX, Inc sends you an EFT (direct deposit) and it is rejected OR if BMTX, Inc. sends you a check and it is returned to sender, we will quit attempting to deliver the funds by 45 days from the time of the rejection/return.

For the purposes of this Return of Title IV Funds policy, “withdrawal” refers to the actions of a student who:

• completely withdraws;
• stops attending before completing the semester;
• is administratively removed, withdrawn, or expelled; OR
• receives all non-passing grades in a semester, including but not limited to F, W, DW, WL, I, NP, NC.

Recipients of federal financial aid (e.g. Federal Pell Grant and Federal Direct Loans) who withdraw before the semester is over may be required to return a portion of the funds they have received. We calculate the return amount using the number of days the student attended in the given semester and the total number of days in the given semester.

Cuesta College financial aid must perform its calculation within 30 days from the date the school determines a student’s complete withdrawal. The school must return the funds to the government within 45 days of the calculation.

Note that the requirement to return unearned aid is separate from Cuesta College's fee refund policy. Regardless of whether students receive a tuition/fee refund, they must repay any amount owed to the federal aid programs due to their withdrawal.

Return of Overpayment

Once a calculation shows that students must return funds, a specialist will inform them of their obligation. Students have thirty days to return the funds directly to Cuesta. If students do not return funds by that deadline, the specialist will post an overpayment on their NSLDS accounts and the students will lose eligibility for Title IV financial aid.

Order of Return of Title IV funds

When the amount of federal aid that must be returned is calculated, it is assigned to the relevant aid programs (when applicable) in the following order:

1. Unsubsidized Direct Loans (other than Direct PLUS Loans)
2. Subsidized Direct Loans 
3. Direct PLUS Loans (parent or graduate)
4. Federal Pell Grants for which a return of Title IV funds is required 
5. Iraq and Afghanistan Service Grant, for which a return of Title IV funds is required
6. FSEOG for which a return of Title IV funds is required
7. TEACH Grants for which a return of Title IV funds is required

Note: any amount that a student must return to a Federal Direct Loan program is handled simply by allowing the student to repay those loans. Additionally, no return amounts will ever be assigned to the Federal Work Study Program.

Withdrawal Dates

In order to calculate the amount of funds that must be returned, the financial aid office must determine the withdrawal date.

• Official notification provided by the student
  • Student notifies Admissions, Student Records & Registration in writing or withdraws via myCuesta student portal.
  • If student completes an Add/Drop form, the withdrawal date is the date the student submits a completed form to the office.
  • If a student sends written notification of intent to withdraw, the withdrawal date is the date the letter is received via mail, email, or fax.
• No official notification provided by student
  • Financial aid office will notify the student that they have 14 days to obtain an Instructor Certification of Attendance from their instructors that has the last date of attendance for each course taken.
  • If no attendance report is available, the calculation will use the midpoint of the semester.

In the case when an official notification was not provided by the student because of circumstances beyond the student's control, i.e., illness, accident, grievous personal loss or other circumstances, the date related to the onset of that circumstance will be used as the withdrawal date.

In some instances, a faculty member may request an administrative withdrawal on behalf of a student and that withdrawal date will be recorded.

The College may always use as the withdrawal date the date that is reported as the last date of attendance at an academically related activity by a faculty member on a class roster, grade roster/sheet, or other documented source, e.g., grade book. The faculty member will maintain the documentation of the last date of attendance.

Instructor Certification of Attendance

If you attended at least one class for 60% of the term, you may be eligible to keep the money you received.  Please verify your attendance. You will fill out the Course Information Section and sign the form. Your instructor will fill out their portion of the form and sign it. The completed form will then be routed to the Financial Aid Office. Please make sure this form is submitted and completed by the student and instructor by the date on the students email. 

Instructor Certificate of Attendance 

 

Date of Determination that the Student Withdrew

The date of determination that a student withdrew varies depending upon the type of withdrawal.

• Official notification provided by the student
  • Date of determination is the date the student provides official notification or begins the withdrawal process, whichever is earlier.
  • Every three to four weeks, the Financial Aid Office will generate a report of financial aid recipients' changes in enrollment to assist in monitoring withdrawals.
• No official notification provided
  • The date that Cuesta College becomes aware that the student has ceased attendance will be the date of determination. This date cannot be later than 30 days after the end of a semester.
  • After grades are assigned for a semester, financial aid will determine recipients that received any combination of “W”, and “F” grades.
     

Federal Disclosure

The law specifies how your school must determine the amount of Title IV program assistance that you earn if you withdraw from school. The Title IV programs that are covered by this law are Federal Pell Grants, Iraq and Afghanistan Service Grants, TEACH Grants, Direct Loans, Direct PLUS Loans, and Federal Supplemental Educational Opportunity Grants (FSEOGs).

Though your aid is posted to your account at the start of each period, you earn the funds as you complete the period. If you withdraw during your payment period or period of enrollment (your school can define these for you and tell you which one applies to you), the amount of Title IV program assistance that you have earned up to that point is determined by a specific formula. If you received (or your school or parent received on your behalf) less assistance than the amount that you earned, you may be able to receive those additional funds. If you received more assistance than you earned, the excess funds must be returned by the school and/ or you.

The amount of assistance that you have earned is determined on a pro rata basis. For example, if you completed 30% of your payment period or period of enrollment, you earn 30% of the assistance you were originally scheduled to receive. Once you have completed more than 60% of the payment period or period of enrollment, you earn all the assistance that you were scheduled to receive for that period.

If you did not receive all of the funds that you earned, you may be due a post-withdrawal disbursement. If your post-withdrawal disbursement includes loan funds, your school must get your permission before it can disburse them. You may choose to decline some or all of the loan funds so that you don’t incur additional debt. Your school may automatically use all or a portion of your post-withdrawal disbursement of grant funds for tuition, fees, and room and board charges (as contracted with the school). The school needs your permission to use the post-withdrawal grant disbursement for all other school charges. If you do not give your permission (some schools ask for this when you enroll), you will be offered the funds. However, it may be in your best interest to allow the school to keep the funds to reduce your debt at the school.

There are some Title IV funds that you were scheduled to receive that cannot be disbursed to you once you withdraw because of other eligibility requirements. For example, if you are a first-time, first-year undergraduate student and you have not completed the first 30 days of your program before you withdraw, you will not receive any Direct Loan funds that you would have received had you remained enrolled past the 30th day.

If you receive (or your school or parent receive on your behalf) excess Title IV program funds that must be returned, your school must return a portion of the excess equal to the lesser of:

1. your institutional charges multiplied by the unearned percentage of your funds, or
2. the entire amount of excess funds.

The school must return this amount even if it didn’t keep this amount of your Title IV program funds.

If your school is not required to return all of the excess funds, you must return the remaining amount.

For any loan funds that you must return, you (or your parent for a Direct PLUS Loan) repay in accordance with the terms of the promissory note. That is, you make scheduled payments to the holder of the loan over a period of time.

Any amount of unearned grant funds that you must return is called an overpayment. The maximum amount of a grant overpayment that you must repay is half of the grant funds you received or were scheduled to receive. You do not have to repay a grant overpayment if the original amount of the overpayment is $50 or less. You must make arrangements with your school or the Department of Education to return the unearned grant funds.

The requirements for Title IV program funds when you withdraw are separate from any refund policy that your school may have. Therefore, you may still owe funds to the school to cover unpaid institutional charges. Your school may also charge you for any Title IV program funds that the school was required to return. If you don’t already know your school’s refund policy, you should ask your school for a copy. Your school can also provide you with the requirements and procedures for officially withdrawing from school.

If you have questions about your Title IV program funds, you can call the Federal Student Aid Information Center at 1-800-4-FEDAID (1-800-433-3243). TTY users may call 1-800-730-8913. Information is also available on Student Aid on the Web at www.studentaid.ed.gov.

Overawards

An overaward occurs when the total of all aid received by the student exceeds the student's cost of attendance budget, thereby requiring the financial aid office to reduce or cancel awards in the student’s financial aid package.

Any overaward that exceeds the cost of attendance beyond the federally allowable tolerance of $300 will require the financial aid office to reduce awards. 

Cuesta College will not reduce or cancel Pell Grant or Federal Supplemental Education Opportunity Grant (FSEOG) awards to eliminate an overaward situation.  In most cases, we will accommodate an additional award by reducing or cancelling student loans and/or federal work-study awards.

These overaward provisions pertain to students who receive funds under any of the following need-based programs:

• Federal Pell Grant
• Federal Supplemental Educational Opportunity Grant (FSEOG)
• Federal Work-Study
• Federal Subsidized Loan (FFEL or Direct)
• Cal Grant

Overpayments

An overpayment occurs when a student is paid more than that for which they are eligible.  If a financial aid overpayment is made as a result of a student’s error or failure to report requested information, the student is responsible for repaying the amount of the overpayment. The Financial Aid Office may reduce the student’s federal award(s) in a subsequent enrollment period during the same award year the overpayment occurred.  If the overpayment amount cannot be satisfied by deducting the amount from a future disbursement, the student is responsible for making direct restitution.

As required by federal regulations, the Financial Aid Office will report the overpayment to the Department of Education via the National Student Loan Data System (NSLDS) within 30 days from the date when the overpayment was created. Indication of an outstanding overpayment will be recorded on future output documents generated by the Department of Education, and may prevent the student from receiving certain types of financial aid funding.

If you have a grant overpayment of $50.00 or less, you do not have to repay the funds and the overpayment will not be reported to NSLDS. This amount is program specific, not cumulative: if you had to return $150.00 in Pell funds and $40.00 in FSEOG, you would have to return the $150.00 but not the $40.00.

We want to empower students to navigate their educational journey successfully. That's why we encourage students to regularly check your Student Cuesta email and myCuesta portal.

Email is the standard method of communication used by the Financial Aid Office at Cuesta College. We will contact you through your Student Cuesta email address, although we will send some emails (e.g. confirmation that we received your FAFSA) to the email address you included on the FAFSA itself.

We will also provide financial aid information to you on your student portal. You are responsible for checking your financial aid status regularly on the myCuesta portal.  We regularly post additional student requirements, resolution of data conflicts, SAP status and status of financial aid awards on the portal. 

We will communicate with you and not your parents.  The FAFSA is your application and—in accordance with the Family Educational Rights and Privacy Act (FERPA)—your account will not be discussed with anyone else (including parents, guardians, family members, and friends) unless you provide explicit authorization to speak with them.  You can find a link to the authorization form in the “QuickLinks” section of your student portal.

Cuesta’s full FERPA policy is available on the policies section of the Cuesta College Admissions, Student Records & Registration webpage.

As a student, you have the right to know:

• What financial assistance is available to you, including all federal, state, and institutional financial aid programs;
• What types of aid are contained in your financial aid award as well as how to retain eligibility for those funds (if applicable);
• What portion of your aid package you are required to repay?  In addition, you have the right to know interest rates, total amount to be repaid, procedures for repayment, when repayment begins, and how long you have to repay the loan;
• The method and frequency of financial aid disbursements;
• The deadlines for submitting applications for applicable financial aid programs and the process required;
• How your financial need is determined, including how cost of attendance budgets are developed;
• What resources are considered in the calculation of your financial need, and how much of your need as determined by Cuesta College has been met;
• How to request a review of your current financial situation if you meet certain criteria based on changes since filing the current aid year FAFSA application; AND
• The criteria for continued financial aid eligibility, including guidelines for the determination of Satisfactory Academic Progress.
   

As a student, you have the responsibility to:

• Fill out the FAFSA application completely and accurately;
• Complete all requirements and submit all documents in a timely manner;
• Read and understand all forms that we ask you to submit or sign, realizing that you are legally responsible for all agreements that you sign;
• Review and understand the terms and conditions of your financial aid award;
• Inform us of any outside scholarships, internships, or additional resources that you receive. This includes gift cards, gas cards, book vouchers, and any other form of direct aid;
• Inform us if you intend to enroll less than full time for any given term so that your aid can be properly adjusted and disbursed;
• Be aware of your ability to pay any institutional charges based on your available financial aid and personal resources; AND
• Know and comply with all policies and procedures of Cuesta College;

At Cuesta College we have two types of Consortium Agreements. A standard agreement and an agreement through California Virtual College (CVC).

Consortium agreements allow students to use enrollment at two different institutions towards their eligibility for Federal Pell Grants and other financial aid awards.  The institution where their degree or certificate program is located is known as the home institution, and the school they are visiting and taking a class or two towards that program is known as the host institution.

Enrollment Requirements

Students must be enrolled in at least 6 degree-applicable units at Cuesta College. If you are taking less than 6 degree-applicable units at Cuesta College, please contact the other school you are attending for their policy on consortium agreements.

California Virtual College (CVC)

• No additional form required.
• Simply search online courses, select them and register. If you select financial aid our office will be notified and review your information.
• You will receive a communication via your myCuesta email.
• These classes must be on your Comprehensive Student Education Plan (CSEP), created by a Cuesta Academic Counselor.

 All classes must be registered for by the following dates:

• Fall 2024 Semester: September 9th, 2024
• Spring 2025 Semester: February 17th, 2025

 

Standard Consortium Agreement

• Form required, see form for more instructions.
• You will receive a communication via your myCuesta email.
• Consortium Agreements cannot be accepted after the dates listed below for each semester. A new Consortium Agreement must be submitted each semester.
  • Fall 2024 Semester: September 6th, 2024
  • Spring 2025 Semester: February 14th, 2025

 

Comprehensive Student Education Plan

The comprehensive Student Education Plan must include all units you are enrolled in at Cuesta College, and the Host College. Submit with the Consortium Agreement. To schedule an appointment with a counselor, please call (805) 546-3138 or schedule an appointment online.

• Standard Consortium Agreement Form

• CVC: No form required

If you have questions about Consortium Agreements, please contact our office at (805) 546-3143 or email finaid@cuesta.edu 

How is a Foreign BA/BS Degree treated at Cuesta College?

For the purposes of financial aid eligibility if you indicate that you have a BA/BS degree you are ineligible for Federal Pell Grant. 

"A student with a baccalaureate or professional degree is ineligible even if the degree is from an unaccredited school or is not recognized by your school. Similarly, a student with a baccalaureate or professional degree from a foreign school usually isn’t eligible for a Pell Grant. But because a foreign degree often won’t translate neatly into the American classification, the school must judge whether it equates to a U.S. bachelor’s degree."

If you would like to "appeal" your BA/BS status to be eligible for Federal Aid you can have your foreign transcripts evaluated by ACEI. There is a fee of $185 for a comprehensive report. 

If it is determined that you do not have the equivalent of a BA/BS degree, then you may be Pell eligible (other eligibility requirements are still required).

The National Student Loan Data System (NSLDS) is the national databased of information about loans and grants awarded to students under Title IV of the Higher Education Act (HEA) of 1965. NSLDS provides a centralized, integrated view of Title IV loans and grants during their complete life cycle, from aid approval through disbursement, repayment, delinquency, and closure.

We are required to monitor transfer students through the NSLDS database. Once we post a student to the monitoring list, we must sit seven (7) days until we can distribute their funds. This process must be done even if you did not receive financial aid at any other school. There is no action needed by the student during this process unless notification is provided that funds are pending or have received at another institution. Students are not eligible to receive any federal student aid until this process is completed.

If you did receive financial aid at another school during the same year you are attending or planning to attend Cuesta College, you must have any pending aid disbursements canceled at your previous school to ensure an accurate award package at Cuesta College.

If funds are pending or have been received from a previous institution during the same academic year you will be notified via email and required to resolve any payments with that institution before Cuesta College can finalize any further payments. 

Cuesta College has established guidelines for the prevention, identification of and response to identification of identity theft and financial aid fraud.

What are Identity Theft and Financial Aid Fraud?
Identity Theft
Individuals who use personally identifying information of other people to apply for admission to college, receive financial aid and then enroll in classes are committing identity theft. Often, the victimized student is not aware that they have been enrolled in classes, and the financial aid funds in their names are sent to the individual who is perpetrating the fraud. This frequently results in the victimized student being left with unpaid debt at the institution and with the U.S. Department of Education due to student loans that were obtained in their name.

Financial Aid Fraud
Students and potential students who enroll in classes and accept financial aid based on enrollment with no intent to complete classes may be considered perpetrators of financial aid fraud. The student’s tuition and fees are usually paid by financial aid funds, and the student receives a refund of financial aid funds in excess of those costs.

Students, parents, spouses, college staff and all others are responsible for accurately portraying information submitted on the FAFSA, and in all supporting documents to the financial aid application process. Such documents include, but are not limited to, the FAFSA, California Dream Application, CCPG Application, verification forms, timesheets, signature pages, appeal applications, correspondence, etc. Falsification of financial aid documents is an extremely serious offense. Students and others who fraudulently complete financial aid documents will be subject to disciplinary action, which may include loss of eligibility for all financial assistance, termination from all College employment programs, and referral to the U.S. Department of Education for criminal prosecution.

Response to Financial Aid Fraud or Identify Theft
When a Cuesta College student is identified as being a potential victim of identity theft or involved in financial aid fraud, their account at the college is placed on hold. This hold prevents students from registering and prevents their financial aid from disbursing to their student account. Financial aid funds for the current semester may also be revoked pending resolution. The hold will remain in place until the student has provided all the documents that Cuesta College may request. Cuesta College Financial Aid reserves the right to leave the hold in place until those documents are provided by the student in person to the Financial Aid Office. The student may be asked questions particular to their status in order to positively determine their identity and intent as a student at Cuesta College. The student may also be asked to submit additional documentation in order to clarify their status as a student. Additional documentation may include, but not be limited to:

• Unexpired Government Issued Photo ID
• Proof of residency at the address listed on the student’s college records
• Social Security Card 
• Birth Certificate
• Official High School Transcript or GED from the issuing entity
• Official transcripts from other institutions of higher education that the student has previously attended

When the College has credible information that suggests that an individual has engaged in fraud or other criminal misconduct, the case will be reported to the Regional Office of the Inspector General and, if applicable, the state or local law enforcement agencies as specified by the U.S. Department of Education under section 668.14(g) of the General Provisions Regulation. In these instances, the College will leave the student account hold in place until instructed by the Department of Education that it is appropriate to lift the hold. Students identified to be involved in financial aid fraud will also be referred to the Assistant Superintendent/Vice President, Student Success & Support Programs for possible disciplinary action up to and including expulsion from the College. All monies paid to the student that are determined to have been the result of fraud will be immediately due to the College. If not repaid, this debt will be referred to a collection agency for collection and legal action, and may also be referred to the U.S. Department of Education. Debts that are referred to a collection agency are subject to fees for the costs associated with collecting the debt, including attorney fees and court costs.

Any fraud that the College refers to the Department of Education may result in criminal prosecution. Criminal prosecution may result in a fine of up to $20,000, imprisonment for up to five years, or both. Students who are victims of identity theft and/or financial aid fraud are urged to file a police report and seek assistance from appropriate authorities outside of the college. This may include contacting credit bureaus and your banking institution. 

The Higher Education Opportunity Act of August 14, 2008 includes provisions that postsecondary schools participating in Title IV programs publish a code of conduct which describes prohibited practices related to loan programs. To avoid any conflict of interest with the responsibilities of a Cuesta College employee with respect to student loans, the Financial Aid Code of Conduct prohibits the following:

• No action will be taken by financial aid staff that is for the personal benefit or could be perceived to be a conflict of interest. Employees within the financial aid office will not award aid to themselves or their immediate family members. Staff will reserve this task to a Manager as the designated person, to avoid the appearance of a conflict of interest.
• Cuesta College and its affiliates have no preferred lending agreements with any lender or private education loans and as such no officer or employee of the College shall engage in the practice of recommending, promoting or endorsing education loans for students attending the College.
• Neither Cuesta College as an institution nor any individual officer, employee, agent or affiliate employee shall enter any revenue-sharing arrangements with any lender. Revenue-sharing arrangement includes circumstances where an institution recommends a lender or the loan products of a lender who provides or issues a loan in exchange for a fee or provision of material benefits, including revenue or profit-sharing, to the institution, or employee or agent of the institution.
• No representative or employee of Cuesta College who is employed in the Financial Aid Office or who otherwise has responsibilities with respect to educational loans, or agent who has responsibilities with respect to educational loans, or any of their family members, shall solicit or accept any gift from a lender, guarantor, or servicer of educational loans. For purposes of this prohibition, the term “gift” means any gratuity, favor, discount, entertainment, hospitality, loan, or other item having a monetary value of more than $50.00. The term includes a gift of services, transportation, lodging, or meals, whether provided in kind, by the purchase of a ticket, payment in advance, or reimbursement after the expense has been incurred.
• An officer or employee of Cuesta College who is employed in the Financial Aid Office or who otherwise has responsibilities with respect to educational loans, or an agent who has responsibilities with respect to educational loans, shall not accept nor affiliate with any lender in terms of fees, payments, or other financial benefits as compensation for any type of consulting arrangement or other contract to provide services to a lender or on behalf of a lender relating to education loans.
• Cuesta College shall not:
  • For any first-time borrower, assign, through award packaging or other methods, the borrower’s loan to a particular lender;
  • Certify a private or alternative loan.
• Cuesta College shall not request or accept from any lender any offer of funds to be used for private education loans, including funds for an opportunity pool loan, to students in exchange for the institution providing concessions or promises regarding providing the lender with respect to:
  • A specified number of private loans;
  • A specified loan volume of such loans; or
  • A preferred lender arrangement for such loans.
• Opportunity pool loan means a private education loan made by a lender to a student attending the institution or the family member of such a student that involves a payment, directly or indirectly, by such institution of points, premiums, additional interest, or financial support to such lender for the purpose of such lender extending credit to the student or the family.
• Cuesta College shall not request or accept from any lender any assistance with financial aid call center staffing or financial aid office staffing.
• Any Cuesta College employee who is employed in the Financial Aid Office, or who otherwise has responsibilities with respect to educational loans or other student financial aid, and who serves on an advisory board, commission, or group established by a lender, guarantor, or group of lenders or guarantors, shall be prohibited from receiving anything of value from the lender, guarantor or group of lenders or guarantors, shall be prohibited from receiving anything of value from the lender, guarantor, or group of lenders, guarantors; except that the employee may be reimbursed for reasonable expenses incurred in the serving on such advisory board, commission, or group consistent with applicable Cuesta College policies.

As a financial aid recipient at Cuesta College, you agree to comply with the following Terms and understand the following information and policies.

• Cuesta College reserves the right to review, adjust, or cancel financial aid awards at any time due to changes in federal, state, or Cuesta College availability of funds.
• Your financial aid offer will be void and/or cancelled if based on any error in determining eligibility for aid whether you or the Financial Aid Office made the error. Should any overpayment arise, you will be responsible for repayment of any funds received.
• Your award may be adjusted or canceled after you have been initially awarded due to changes in financial aid need, new aid received unit enrollment at the free, residency, dependency, marital status, academic status, and failure to comply with state, federal and institutional regulations.
• Your enrollment status will not be changed after the financial aid freeze date. Students adding additional units will not receive additional financial aid funds.
• The amount of financial aid you are eligible to receive is based on your unit enrollment.
• Per federal regulations, Federal Financial Aid funds can be paid for only 1 repetition of a previously passed course. Passing grades are “A, B, C, D, and P”. A student may repeat a failed course until it is passed.
• You are responsible for paying registration fees that are not fully covered by financial aid. Failure to pay your remaining balance on time may result in being dropped from courses and/ or inability to register for future semesters.
• You are responsible for enrolling in an educational program leading to a degree, transfer, or certificate that is eligible for financial aid. Certificate programs less than 16 units are ineligible to receive financial aid.
• Your eligibility for financial aid is contingent upon meeting Satisfactory Academic Progress (SAP) standards according to the Cuesta College SAP Policy.
• You must enroll in at least six (6) units per semester to qualify for Federal Work-Study, FSEOG, Federal Direct Loans, and Cal Grant programs.
• You must comply with Federal Regulations which prohibit a student from receiving Federal Pell Grant from more than one institution at the same time.
• If you stop attending a class, you are responsible for withdrawing with the Admissions, Student Records & Registration Office. If you receive financial aid funds and withdrawal from one or more courses this may result in cancellation or repayment of all or part of your aid.
• If you withdraw from Cuesta College, any fee refund due may be returned to the appropriate financial aid program.
• Information provided on any financial aid application and other documents must be true and correct. Cuesta College may verify any and/or all information. You must notify the Financial Aid Office if you receive other financial aid assistance or resources.
• If you owe a refund on any Federal Pell Grant and/or Federal FSEOG, or if you are in default on a Federal Direct, Federal Stafford Loan, PLUS, or Federal Perkins Loan from any institution, you will not be eligible for financial aid.
• You must promptly notify the Admissions, Student Records & Registration and/or Cashier's Office of a change of address, change of name, drop or withdrawal from course(s).
• Regulations governing financial aid are subject to change at any time without notice.