Students entering a leave of absense at Rosalind Franklin University of Medicine and Science (RFUMS) should be prepared for the possible impact the Leave of Absence will have on their educational loans. All students are required to meet with the Financial Aid Office prior to entering a leave of absense. We encourage all students considering a Leave of Absence to make an appointment with the Financial Aid Office as early as possible.
What if my Leave of Absence is six months (180 days) or less? Impact on your loans during the leave of absence: Stafford Loans
Perkins Loans
Grad PLUS Loans
Private Loans
Institutional Loans and HPSL
Impact on your loans after graduation:
What if my leave of absence is longer than six months? Impact on your loans during the leave of absence: Stafford Loans
Timeline
Click here to see the time line.
The table represents the possible student loan timeline for leave of absence of six months or more. Be sure to consult with your loan servicer to verify grace time as well as deferment and forbearance options.
Financial Aid for Students on a Leave of Absence is Prohibited No Federal financial aid, in any form, is available to students during a Leave of Absence. Mandatory Exit Interview Any student who is a recipient of Financial Aid and is entering a Leave of Absence must meet with the Financial Aid Office prior to entering the leave. Students must participate in an exit interview. The purpose of the exit interview is to review the terms of student loans, such as grace, deferment and repayment options. The Financial Aid Office will also discuss how the Leave of Absence or withdrawal will impact funds the student has already received for the quarter, and if a refund may be required. Students may be required to complete additional paperwork from the Business Office. Returning from a Leave of Absence Students must contact the Financial Aid Office 30 days prior to returning from the leave of absence for applications and counseling. Institutional Scholarship Policy Institutional Scholarships may be retracted if the student withdraws or enters a leave of absence during a term. Institutional scholarship dollars already received by the student for the quarter of withdrawal may be prorated for the dates of enrollment. Tuition Refund Policy (Business Office Policy) If a student withdraws from the program before the end of the first week of classes, 100% refund of tuition is made. When withdrawal is made before the end of the second week, the refund is 75%; before the end of the third week, 50%; before the end of the fourth week, 25%. After that time, no refund is granted. Return of Funds Policy A student may find it necessary to withdraw from school or enter a leave of absence during a quarter. When this occurs, the student may owe a refund of Title IV funds. It is important that every student at Rosalind Franklin University of Medicine and Science (RFUMS) is familiar with the Title IV refund policies. Title IV refund policies have no relationship to the University tuition and billing policies. In other words, the amount of institutional charges a student owes for a term in which s/he withdrew is not equivalent to the amount of Title IV funding the student is entitled to. Often times, a student who is a recipient of financial aid that withdraws mid-term will not only owe all funds that were picked up for books and living expenses, s/he will also owe the University a payment to cover institutional charges (ie tuition). Return of Title IV (Federal) Aid The federal government mandates that students who withdraw from all classes may only keep the financial aid they have “earned” up to the time of withdrawal. Title IV funds that were disbursed in excess of the earned amount must be returned by RFUMS to the federal government. This could result in the student owing aid funds to RFUMS, the government, or both. To determine the amount of aid the student has earned up to the time of withdrawal, the Financial Aid Office will divide the number of calendar days the student attended classes by the total number of calendar days in the quarter (less any scheduled breaks of five days or more). The resulting percent is used to determine the pro-rated Title IV funds earned by the student. If the percent is 60% or more, the student will not need to return any Title IV funds. Allocating Returned Title IV (Federal) Aid Funds that are returned to the federal government are used to reduce the outstanding balances in individual federal programs. Financial aid returned must be allocated in the following order:
Students who circumstances require that they withdraw from classes are strongly encouraged to contact the Financial Aid Office and their academic department before doing so. Satisfactory Academic Progress and Financial Aid In accordance with Federal regulations, students must meet the criteria for Satisfactory Academic Progress to be eligible for financial aid. Regulations require a maximum time frame for degree completion, a quantitative measurement (such as credit hours earned towards degree), and a qualitative measurement (such as cumulative grade point average or acceptable pass/fail status). The criteria for academic progress and objectives are determined by each academic program and students should consult the appropriate student handbook for requirements. Each college has an associated governing body which defines and monitors academic progress and objectives in conjunction with the Registrar’s Office. The Chicago Medical School is governed by the Student Evaluation, Promotions, and Awards Committee (SEPAC). Dr. William M. Scholl College of Podiatric Medicine is governed by the Committee on Academic Review and Promotion (CARP). The College of Health Professions is governed by the Professional Affairs Committee (PAC). The School of Graduate and Postdoctoral Studies is governed by the Committee of Academic Standards (CAS).
If I use my grace period during my Leave of Absence, will it still be available to me after I graduate? If your leave of absence is less than 6 months, your grace period will be re-instated for your federal loans after you graduate. If your LOA is longer than a year, and you enter deferment, forbearance, or repayment status before returning to school then you will not have the grace period after you graduate. Is it possible that I will need to return financial aid funds I have already received when I enter a leave of absence? Yes. If you enter a leave of absence mid-quarter, you may owe your financial aid overpayment check back to the University. See the Title IV Refund policy for details. Will I need to reapply for Financial Aid when I return from my leave of absence? Yes, if you are returning at the start of a new academic year you will need to complete new applications. All students, regardless of the length or timing of their LOA, should contact the Financial Aid Office at least 30 days prior to returning to school. The Financial Aid Office can advise you on any loan applications you may need to complete. Do I have to contact me lender and apply for the grace period? No, grace happens automatically with your loans when you drop below half-time status. You should, however, contact your lender and update your address and be sure you know when your grace period will expire. If you need to, you can apply for a deferment or forbearance when your grace period is up. What is the difference between being in a deferment versus a forbearance? During deferment, you will not owe any payments on your loan. The interest will continue to accrue on your unsubsidized loans (Unsubsidized Stafford, Grad PLUS, private loans) but not capitalize. Your subsidized loans (Subsidized Stafford, Perkins, HPSL, Institutional) will remain interest-free during deferment. In forbearance, you also won’t owe any payments but the interest will be accruing and capitalizing on all loans. Forbearances are not guaranteed, especially with private loans. They are a courtesy that the servicer extends to the customer based on professional judgment. Always apply for deferments first, and only use forbearance if you do not qualify for any deferment options.
Contact the Financial Aid Office: (847) 578-3217