Appendix E – Financial Aid Satisfactory Academic Progress Policy

The following policy is effective starting the first day of the Summer 2023 Term.

Federal Regulation 34 CFR 668.34 requires postsecondary institutions receiving federal student aid funds under Title IV of the Higher Education Act of 1965 to establish a policy for determining whether an eligible student is making satisfactory academic progress (SAP) in their educational program to receive federal student aid.

The Office of Student Aid monitors the academic progress of all students. Financial aid satisfactory academic progress (SAP) includes both qualitative standards and quantitative standards, which are detailed in this policy. This policy governs a student’s eligibility to receive federal student aid funds and any other student aid sources that base eligibility on federal or institutional financial aid SAP standards. This policy is separate from University requirements for being in good academic standing and is at least as strict as the University’s academic standards.

All students must meet the qualitative and quantitative standards for financial aid SAP, regardless of enrollment status.

1. Scope

Satisfactory academic progress is measured during all periods of a student’s enrollment at Penn State, including periods in which the student is not receiving financial aid or periods where a student is in a non-degree enrollment status, and periods which are otherwise waived via academic renewal. Federal student aid programs subject to this policy include the following programs:

• Federal Pell Grant
• Federal Supplemental Educational Opportunity Grant (FSEOG)
• Teacher Education Assistance for College and Higher Education Grant Program (TEACH)
• Iraq/Afghanistan Service Grant
• Direct Subsidized Loan
• Direct Unsubsidized Loan
• Direct PLUS Loan
• Direct Graduate PLUS Loan
• Federal Work-Study (FWS)

Non-federal student aid programs may base a student’s eligibility on whether the student is meeting an institution’s federal satisfactory academic progress standards. Students should consult with the program sponsor to determine whether federal SAP is an eligibility requirement.

A state agency awarding state aid may establish its own academic standards. Students should consult their state awarding agencies for more information.

2. Definitions

Appeal: A process by which a student who is not meeting one or more financial aid satisfactory academic progress standards requests that the Office of Student Aid reconsider their eligibility to receive financial aid subject to this policy.

Financial Aid Probation: A status assigned to a student who failed to make financial aid satisfactory academic progress, has successfully appealed, and has had their eligibility for student aid, as identified in this policy, reinstated.

Financial Aid Progress:  A status assigned to a student who is meeting all satisfactory academic progress standards as detailed in this policy.

Financial Aid Warning: A status assigned to a student who is failing to make financial aid satisfactory academic progress. This is a one payment period (e.g., semester) status which allows a student who failed to make satisfactory academic progress to continue to receive financial aid without requiring an appeal. This status is only for students who were making financial aid satisfactory academic progress in the prior payment period (e.g., semester) for which they were enrolled and who are in academic programs that are monitored for financial aid satisfactory academic progress at the end of each payment period (e.g., semester) as defined in this policy. If the student is not making satisfactory academic progress after one payment period for which they were enrolled in a financial aid warning status, they will be placed on financial aid suspension.

Financial Aid Suspension: A status assigned to a student who is not meeting one or more standards for financial aid satisfactory academic progress.

Maximum Timeframe: A period of time that is 150% of the published length of the academic program in which the student must complete their academic program to receive financial aid as specified in this policy.

Pace of Completion: The ratio, expressed as a percentage, of successfully completed (earned) credits divided by attempted credits. For most academic programs at Penn State, the minimum completion rate to continue receiving financial aid is 67%. Percentages are rounded using standard rounding rules (i.e., round up .5 and higher, round down if below .5).

Payment Period: The academic period of enrollment established by an institution for which financial aid is disbursed. A payment period is usually, but not always, the same as a semester (i.e., fall semester, spring semester, summer semester).

3. Satisfactory Academic Progress Standards

Qualitative Standard

Grade-Point Average

Students whose academic programs utilize grade-point average (GPA) must have a minimum cumulative GPA as defined below at each evaluation to be making financial aid SAP.

Undergraduate Student: 2.0 Cumulative GPA
Graduate Student: 3.0 Cumulative GPA
Law School Student: 2.0 Cumulative GPA
Postbaccalaureate Certificate Student: 3.0 Cumulative GPA
Teacher Certificate Program Student: 3.0 Cumulative GPA

Courses removed or changed as a result of academic renewal (see University Faculty Senate Policy 54-90 Academic Renewal) are counted for financial aid satisfactory academic progress (both qualitative and quantitative standards) in determining a student’s financial aid eligibility.

Remedial courses are factored into a student’s GPA.

Comparable Qualitative Assessments

Grade-point average is not a measurement used for certain academic programs at the University, and therefore cannot be measured for financial aid SAP.  Students enrolled in such academic programs are required to successfully complete all courses attempted to be making financial aid SAP.  These programs include:

• Medical Degree Programs
• Physician Assistant Program
• Practical Nursing Program
• Golf Course Turfgrass Management

Incompletes, Withdrawals, Repeated Coursework, and Transfer Credits

Incomplete Grades

Credits for a course in which a student was enrolled but received a Deferred Grade (DF) or No Grade (NG) count as attempted, but do not count as earned.  The student’s grade-point average for that semester will be calculated without deferred-grade and no-grade credits.

When a valid incomplete grade is finalized, it is factored into the student’s SAP status at the next evaluation. However, if the DF or NG grade was invalid (i.e., assigned in error as documented in writing by the instructor), the student must contact the Office of Student Aid after the grade is corrected to request that his or her SAP status be immediately reevaluated.

Withdrawals

Credits for courses taken during a semester from which a student has withdrawn count as attempted, but do not count as earned. The student’s GPA is not affected by credits from which a student has withdrawn.

Repeated Coursework

The credits of a repeated course count as credits attempted.  Credits for a repeat course count as earned only if they have one of the attributes listed in the “Credits Earned Defined” section below. All grades earned are included when determining a student’s cumulative GPA, except in cases where a student has used undergraduate grade forgiveness (see Academic Administrative Policies and Procedure Manual H-2: Undergraduate Grade Forgiveness and University Faculty Senate Policy 47-80: Repeating Courses). The original grade for a course that has been forgiven is not included in the student’s GPA for financial aid SAP; however, the credits still count as attempted.

Transfer credits earned at another school and accepted by Penn State count as both attempted and earned.  The student’s GPA is not affected by credits that have been transferred to Penn State from another institution.

Transfer credits accepted by Penn State are factored into the student’s SAP status at the next SAP evaluation. However, a student may contact the Office of Student Aid after the transfer credits have been posted to their academic record to determine if their SAP status can be reevaluated.

Grade Changes

When a grade is changed, the change is factored into the student’s SAP status at the next evaluation. However, a student may contact the Office of Student Aid after the grade change posts to their academic record to request that the SAP status be reevaluated.

Quantitative Standards

Maximum Timeframe Standard

Students must complete their program within the maximum timeframe based on units attempted for their primary academic program. Credits are the unit of measure used for most academic programs at Penn State.  For some programs, clock hours are used. All credits attempted (as defined below) by the student count for SAP purposes.

Once the maximum timeframe is reached, or the Office of Student Aid determines that it is not mathematically possible for the student to complete the academic program within the maximum timeframe, the student is considered ineligible for financial aid and will be assigned the status of financial aid suspension.

Students who are exceeding the maximum timeframe due to specific academic actions (such as a change of major, concurrent majors, second subsequent degree, or transfer credits not counting towards a current degree program) may request a review through the Office of Student Aid. Adjustments of the maximum timeframe cannot be completed for minors or certificates that are not required for the completion of the primary degree program.

The maximum timeframe is calculated by multiplying the minimum units required for the academic program by 150% to determine the maximum number of units.

Maximum Timeframe = Minimum units required for academic program x 150%

For example, a student pursuing a bachelor’s degree that requires 120 credits has a maximum timeframe of 180 credits.

Attempted credits are counted for all payment periods (e.g., semesters) and include transfer credits, credits for courses taken during a semester from which a student has withdrawn, credits for which the student did not receive financial aid, as well as those usually waived under academic amnesty (academic renewal).

Pace of Completion Standard

Unless otherwise specified by academic program requirements, students must maintain a pace of completion of 67%, using standard rounding rules. This pace of completion should ensure that students will complete their academic programs within the maximum timeframe described above.

Pace of Completion = (Cumulative hours successfully completed ÷ Cumulative hours attempted) x 100

The information below details when a credit is counted as successfully completed (i.e., credit earned) or as attempted (i.e., credit attempted).

Credit Earned Defined

In general, credits earned have one of the below attributes:

• Undergraduate Student:  Grade of D or better; Satisfactory/Pass grades
• Graduate Student:  Grade of C or better; Satisfactory/Pass grades
• Postbaccalaureate Certificate Student: Grade of C or better; Satisfactory/Pass grades
• Clock-Hour Student:  Courses passed in accordance with academic program
• Medical School Student:  Grade of Pass, Low Pass, or better
• Transfer credits earned at another school and accepted by Penn State
• Credits earned through examination (e.g., AP, CLEP) and credit by portfolio assessment
• Credits earned for remedial courses
• Credits for ESL/EAP courses
• Previous coursework of students granted academic amnesty (academic renewal)
• Completion of research credits

Note: For more information about grades, see University Faculty Senate Policies 47-00, 48-00, 49-00

Credit Attempted Defined

If a credit does not count as attempted, it also does not count as earned.

The below examples illustrate how pace of completion is calculated for a student.  Percentages are not rounded.

Example 1: A student has attempted a total of 18 credits after two semesters of enrollment, and has successfully completed 12 credits.

Pace of Completion: (12 credits successfully completed ÷ 18 credits attempted) x 100 = 66.6%, which would round to 67%.

Eligibility Status: Student is meeting the pace of completion standard for SAP and is making financial aid progress.

Example 2: A student has attempted a total of 30 credits after one year of enrollment. The student successfully completed 18 credits, 12 in the fall and 6 in the spring.

Pace of Completion: (18 credits successfully completed ÷ 30 credits attempted) x 100 = 60%

Eligibility Status: Student is not meeting the pace of completion standard for SAP, and will be assigned the status of financial aid warning. If the student is not making SAP at the end of their financial aid warning semester, they will be placed on financial aid suspension.

4. Financial Aid SAP Evaluations

All students, except for medical students and Physician Assistant Program students, are evaluated at the end of each payment period (e.g., semester) when the grade reporting deadline has passed. Medical students and Physician Assistant Program students are evaluated annually at the end of the spring payment period when the grade reporting deadline has passed.

Clock-hour students are evaluated at the end of each payment period when the student’s scheduled clock hours for the payment period have elapsed.

Students who meet all financial aid SAP standards, and other applicable eligibility requirements, are eligible to receive financial aid. Students who are not meeting financial aid SAP standards, or for whom it is not mathematically possible to meet the standards within the maximum timeframe, will receive electronic notification from the Office of Student Aid of the impact on their aid eligibility.

Financial Aid Warning

Students in academic programs that are monitored for satisfactory academic progress at the end of each payment period (e.g., semester) as defined in this policy who fail to meet the pace of completion standard and/or fail to meet the qualitative standard as defined in this policy will be placed on a one payment period (e.g., semester) financial aid warning status for their next semester of enrollment. This status is only for students who were making financial aid satisfactory academic progress in the prior payment period (e.g., semester) for which they were enrolled. Students in financial aid warning status are eligible to receive financial aid.

Financial Aid Suspension

Financial aid suspension is the status assigned to students who fail to meet one or more standards of SAP. A student assigned the status of financial aid suspension is not eligible to receive financial aid subject to this policy.

5. Restoring Financial Aid Eligibility

Restoring aid without an appeal

Students who fail to meet the qualitative standards or the quantitative pace of completion standard can restore financial aid eligibility by meeting the minimum financial aid SAP standards required by this policy at the end of a future payment period (e.g., semester). Students who exceed the maximum timeframe standard cannot restore eligibility without appealing to the Office of Student Aid for reinstatement consideration.

Appeals

Students assigned the status of financial aid suspension may appeal to the Office of Student Aid for reinstatement of their aid.  Financial aid SAP appeal forms are available from the Office of Student Aid.

A student may file an appeal with the Office of Student Aid on the basis of the death of a relative, an injury or illness of the student, or other special circumstances. In the appeal, the student must explain why they failed to make financial aid SAP and what has changed in the student’s situation that will allow the student to demonstrate financial aid SAP at the next evaluation. To appeal, a student must complete and submit the Financial Aid SAP appeal form provided by the Office of Student Aid and supply all required supporting documentation and signatures, as detailed in the appeal form.

The Office of Student Aid will notify the student electronically of the results of the Financial Aid SAP appeal. If an appeal is denied, the student is ineligible for financial aid subject to this policy. If an appeal is approved, the student is assigned the status of financial aid probation.

Students whose appeals are denied after failing to meet the qualitative standards or the quantitative pace of completion standard can restore financial aid eligibility by meeting the minimum financial aid SAP standards required by this policy at the end of a future payment period (e.g., semester).

Students on financial aid probation must either meet the minimum SAP standards by the final grade date of the probationary payment period to remain eligible for student financial aid, or meet the conditions of the academic plan developed by the institution to remain eligible for further financial aid.   The academic plan is outlined in the communication that students receive from the Office of Student Aid when their SAP appeal is approved.  Students are responsible for understanding and following the conditions set forth in the academic plan.

Revised: 6/6/72
Revised Editorially: 11/5/07
Revised: 5/17/11
Revised Editorially: 6/17/16 (Revised and became standalone policy – Appendix E –
separated from Appendix D Academic Conditions for Veterans Benefits)
Revised Editorially: 5/22/18
Revised Editorially: 6/25/19
Revised Editorially: 1/24/2023