Financial Aid Policies

The Cost of Attendance (COA) is a budget to help students estimate the costs of pursuing an education at Hawaiʻi CC. The COA includes direct costs, living expenses, and other costs associated with attendance. It is also a factor in determining financial aid eligibility and limits.

Direct costs include tuition and fees – the costs directly associated with enrollment. Living expenses include housing, food, transportation, and personal expenses. Other costs include estimates for books, supplies, and student loan fees. Each budget component is assigned a dollar value based on actual or estimated costs, then added together to equal the student’s COA.

The chart below is a breakdown of estimated costs per semester based on residency status, living arrangements, and enrollment level. Actual expenses may vary. Per federal regulations, students enrolled less than half-time do not have Cost of Attendance (COA) budget components for housing, food, and personal expenses.

The net price is the remaining costs of attendance after grants and scholarships have been applied (net price = cost of attendance – grants and scholarships). The Net Price Calculator is intended to provide net price information for current and prospective students based on amounts full-time, first-year students paid in prior years.

Net Price Calculator

To qualify for federal student aid, students must submit the annual Free Application for Federal Student Aid (FAFSA) and:

• be a US citizen or eligible non-citizen,
• enroll in an eligible degree or certificate program,
• meet financial aid Satisfactory Academic Progress (SAP) requirements,
• be in good standing with all federal grants and loans,
• have financial need according to the federal financial aid need formula, and
• have the ability to benefit, which is defined as having earned a high school diploma, GED, or equivalent.

Some federal funds are available to all eligible students, such as the Federal Pell Grant and Federal Direct Student Loans, but other federal, state, institutional, and external funds are limited based upon availability. Students who complete the FAFSA by March 1st each year will be prioritized for limited funds. The FAFSA is available online at studentaid.gov/fafsa.

Notifications regarding financial aid offers, requirements, and revisions are sent to student UH email accounts, so students should check their emails regularly.

Delinquency and Default
Federal student loan borrowers who miss their scheduled payments are considered to be delinquent. Borrowers who are delinquent for 90 or more days are reported by their loan servicers to the three national credit bureaus, negatively impacting their credit ratings. Poor credit ratings may make it difficult to obtain credit cards, home loans, car loans, and other financing, and may also make it difficult to sign up for utilities, obtain home insurance, sign up for cell phone plans, or rent homes and apartments.

When borrowers are delinquent for 270 days or more, they are considered to be in default. Defaulting on a student loan has serious negative consequences, which may include loss of eligibility for federal student aid, acceleration (the entire loan balance, principal and interest, becomes due immediately), loss of eligibility for deferment or forbearance, wage garnishment, loss or reduction of tax refunds or other federal benefits, legal proceedings, and court costs.

Avoiding Default
Before borrowing federal student loans, students must complete Federal Direct Loan Entrance Counseling, which provides information about loan requirements and payment obligations. They must also sign a Master Promissory Note, which is a legal agreement to repay borrowed funds with interest and applicable fees.

When borrowers graduate or otherwise cease enrollment in at lest six (6) credits, they must complete Federal Direct Loan Exit Counseling, which reminds borrowers of repayment obligations and options. Borrowers who are experiencing difficulty repaying their student loans should contact their loan servicers to explore all options to avoid delinquency and default, which may include income-driven repayment plans to lower monthly payments, changing payment due dates to align with employer pay schedules, deferment, and/or forbearance. Information about student loan servicers is available online at studentaid.gov (after logging in, navigate to the Loan Repayment dropdown menu and select ‘Who’s My Loan Servicer?’).

To help with the repayment Process, Hawaiʻi CC has partnered with ECMC Solutions to provide free student loan counseling and borrower support for current and former Hawaiʻi CC students. For assistance students should contact ECMC by phone at 1-877-331-3262, or by using the contact options online at ecmcsolutions.org.

Cohort Default Rate
Schools that participate in the Title IV Federal Student Aid programs are required to maintain a Cohort Default Rate (CDR) below 30%. When a school’s CDR is 30% or higher, increasingly restrictive penalties are applied. Schools with a CDR of 30% or more for one year must submit a default prevention plan to the US Department of Education for review. Schools with a CDR of 30% or more for a second consecutive year must submit a revised default prevention plan and may be placed on provisional status. Schools with a CDR of 30% or more for a third consecutive year lose eligibility to participate in the Federal Pell Grant and Direct Loan programs. Schools with a CDR greater than 40% for any single year lose eligibility to participate in the Federal Pell Grant and Direct Loan programs.

A school’s CDR is calculated by first determining the number of borrowers who defaulted on their loans during the federal fiscal year (October 1st through September 30th) in which they entered repayment, or during the two following fiscal years. That number is then divided by the total borrowers in the cohort. For example, students who entered repayment between October 1st, 2018 and September 30th, 2019 are part of the 2019 cohort. The 2019 CDR is based on students in the 2019 cohort who default during the 2019, 2020, or 2021 fiscal years (October 1st, 2018 - September 30th, 2021).

Because it takes three years to track cohort outcomes, CDRs are not published until three years after each cohort is established. Hawaiʻi CC’s annual CDRs for the latest available cohorts are provided in the chart below. The national average CDR for two-year public institutions is also provided for comparison.

Hawaiʻi CC’s CDRs have historically been higher than the national average, but this is in part due to its relatively small cohort sizes - each default has a higher impact on a small cohort than it would on a large cohort. Additionally, Hawaiʻi CC’s Direct Subsidized and Unsubsidized Loan borrower percentage has fluctuated due to the COVID-19 pandemic, as well as system-wide policy changes, such as the centralization and alignment of various University of Hawaiʻi Community Colleges financial aid policies and procedures. Beginning with the 2023-2024 school year, students have received upfront Federal Direct Loan offers as part of their financial aid package, which has resulted in increased borrowing year over year - both by the number of student borrowers and by percentage.

Disbursements occur when financial aid is applied to student accounts to pay for outstanding charges. Financial aid that exceeds outstanding charges at the time of disbursement is refunded to students. Unless authorized, federal financial aid can only pay for tuition, fees, and institutional housing charges. Other charges, such as late fees, library or parking fines, and digital course materials, must be paid separately.

Financial aid disbursements begin no earlier than 10 days before the first day of instruction. Additionally, first-time student loan borrowers are subject to a 30-day delay, and all student loans are disbursed in two separate payments, one at the beginning of the loan period and one at the midpoint. Funds from external organizations are applied by the Business Office as they are received.

Per federal regulations, Hawaiʻi CC must validate the legitimacy of a student’s high school diploma if it has reason to believe that the diploma is not valid or was obtained from an entity that requires little or no secondary instruction or coursework. In such cases, the Financial Aid Office will request documentation from the high school that confirms the validity of the high school diploma; request documentation to confirm the high school is recognized or meets requirements by its governing state agency, tribal agency, or Bureau of Indian Education; and/or confirm that the high school is not on the US Department of Education’s list of high schools that issue invalid high school diplomas; as applicable.

Students whose high school diplomas must be validated are not eligible for financial aid until validation is complete. If financial aid has already been disbursed prior to validation, all disbursements will be reversed and the student will be immediately responsible for any charges owed as a result. Determinations of validity are at the discretion of the Financial Aid Manager, or their designee, and are not subject to further review.

The financial aid SAP policy is separate and distinct from the institution’s Satisfactory Academic Progress policy (HAW 7.520).

Federal regulations require students receiving financial aid to make Satisfactory Academic Progress (SAP). To make SAP, students must earn and maintain a minimum 2.0 cumulative Financial Aid Grade Point Average (FA GPA), maintain a minimum 67% Credit Completion Rate (CCR), and be be able to graduate within their Financial Aid Time Frame (FATF).

SAP is evaluated after each payment period for students on financial aid probation and for students enrolled in eligible certificate programs that require 24 or fewer credits. For all other students, SAP is evaluated annually after grades are finalized for the spring term.

All credits attempted at the student’s home campus, during any term of enrollment and regardless of financial aid status, is counted in SAP calculations. Transfer credits do not impact FA GPA but are factored into both CCR and FATF.

Financial Aid GPA
Students must earn and maintain a minimum 2.0 cumulative FA GPA. FA GPA is calculated by multiplying the number of credits per graded course by the number of points associated with the grade earned, adding all points together, then dividing the total points by the number of graded credits attempted. All original grades are included in FA GPA calculations – grades that have been changed or removed from transcripts as a result of repeated coursework, administrative withdrawals, academic renewals, or other academic policies, are not altered or excluded when determining a student’s FA GPA.

• Grades that are calculated into a student’s FA GPA include: A (4 points), B (3 points), C (2 points), D (1 point), F (0 points), and N (0 points).
• Grades that are not calculated into a student’s FA GPA include: CE, CR, I, L, NC, RD , and W.

Credit Completion Rate
Students must earn and maintain a minimum 67% CCR. CCR is calculated by dividing the total earned credits by the total attempted credits, then multiplying the result by 100 and rounding down to the nearest whole number.

• Grades that count as both attempted and completed include: A, B, C, D, CE, CR, and PBA.
• Grades that count as attempted but not completed include: F, I, N, NC, RD, W, and grades removed by administrative withdrawal, academic renewal, or other academic policies.
• Credits taken at other UH campuses (consortium credits) and counted toward a student’s financial aid enrollment level are counted as attempted and, if passed, completed.
• L, P, and NP grades are not included in CCR calculations.

Financial Aid Time Frame
Students must be able to graduate within their FATF, which is determined by multiplying the number of credits required for program completion by 150%. Noncompliance occurs at the time it becomes impossible to complete all program requirements within a student’s remaining FATF, not when the student uses all remaining credits.

With the exception of the remedial and English as a Second Language (ESL) exclusions listed below, all attempted credits count against FATF limits, including transfer credits, credits that are not required for degree completion, and credits that do not apply to a student’s current program.

• Up to 30 combined attempted credits of remedial math and English do not count against FATF limits.
• ESL credits do not count against FATF limits.

Financial Aid Suspension
Students who do not meet all SAP requirements – FA GPA, CCR, and FATF – are placed on financial aid suspension and are not eligible for financial aid. To remedy FA GPA or CCR deficiencies, students may take and pay for courses on their own until they are meeting all minimum requirements. Students who are unable to graduate within their remaining FATF are unable to regain financial aid eligibility without an approved SAP appeal. Ceasing enrollment for any length of time will not resolve SAP deficiencies.

Appealing Financial Aid Suspension
Students who lost financial aid eligibility due to extenuating circumstances may submit a SAP Appeal for consideration. At a minimum, students must explain what caused them to become noncompliant with SAP requirements and what has changed so they will be able to meet all requirements moving forward. Where possible, students must also provide supporting documentation. Some examples of extenuating circumstances that may be considered for appeal approval include: illness, divorce, death, and financial hardships. Appeals based on circumstances that are the same or similar to those considered for prior appeals will not be approved.

When a student’s SAP Appeal is approved, the student is placed on financial aid probation and given specific requirements to meet each term. Appeal approval may be renewed from term to term for students who meet their probation requirements until they have remedied all deficiencies or graduated. Students who do not meet all probation requirements each term will revert back to financial aid suspension.

SAP Appeals take up to four weeks to process and cannot be approved after the applicable payment period has ended. Students should submit their appeals no later than 30 days before the last day of instruction to ensure there is adequate time for review. Appeal approval is at the sole discretion of the Financial Aid Manager, or their designee, and is not subject to further review. All appeal decisions are communicated via UH email.

The following information is a broad overview of financial aid terms and conditions. While some requirements may not be applicable to all types of financial aid, adherence is required for all applicable programs and funds.

• Academic Year. An academic year is defined as 30 credits and 30 weeks of instruction. The summer term is considered a trailer because it is after the end of the regular academic year (fall and spring).
• Automatic Acceptance. Grants and scholarships are automatically accepted. To accept student loans, a student loan request form is required.
• Availability of Funds. All financial aid offers are made on the condition that funds are available. In the event that federal, state, or local governments, or other sources of aid reduce or eliminate funds, financial aid offers may be reduced or canceled.
• Change of Information. Changes to a student’s legal name, address, social security number, or telephone number must be immediately reported to the Admissions and Records Office or the Financial Aid Office, as applicable. Students must notify the Financial Aid Office in writing if information reported on their financial aid applications has changed.
• Change Without Notice. Federal, state, and institutional financial aid criteria and policies are subject to change without notice as a result of changes to laws, regulations, and institutional policies.
• Class Standing. For financial aid purposes, students who have completed less than 30 credits are first-year students, and students who have completed 30 or more credits are second-year students.
• Consortium Agreements. Hawaiʻi CC has a broad consortium agreement with the other UH campuses. Degree-applicable (required) coursework at other UH campuses will be evaluated for financial aid eligibility as long as the student is enrolled in at least one course at Hawaiʻi CC.
• Dates and Deadlines. It is the student’s responsibility to keep track of all financial aid requirements and deadlines. Students should regularly check the Financial Aid Home Page online at www.hawaii.hawaii.edu/financialaid, and monitor their UH emails for financial aid updates and requirements.
• Degree Applicability. Financial aid is only available for degree-applicable courses, which are courses that satisfy degree requirements for the student’s primary degree.
• Enrollment Changes and Withdrawals. Changes to enrollment may result in financial aid revisions. Students will be notified via UH email if changes are made.
• Enrollment Requirements. Enrollment requirements vary by financial aid type. Students must enroll in at least the minimum number of required credits to maintain eligibility.
• Financial Need. Many financial aid types require financial need, as determined by the FAFSA. Changes to financial need or receipt of additional financial aid may result in the reduction or cancelation of need-based financial aid.
• Home Campus. Students are only eligible for financial aid at their home campus, which is the campus from which they are pursuing their primary degree or certificate.
• Pell Recalculation Date (PRD). Pell Grant amounts, and amounts for a variety of other grants and scholarships, are initially calculated using projected full-time enrollment, then later recalculated based on actual enrollment prior to disbursement. Adjustments continue to occur until the PRD, which may also be referred to as the census or enrollment lock date. For the fall and spring terms, the PRD is generally the same as the last day to withdraw from classes without a W grade, but it may be different for the summer term and for modules. Financial aid is not usually adjusted after the PRD, however students who completely withdraw or otherwise do not meet requirements may be required to repay funds.
• Overawards. Financial aid that exceeds allowable total or need-based limits will result in an overaward. Overawards must be resolved and may result in financial aid cancelations or reductions, which may in turn require students to repay funds.
• Release of Confidential Information. The Financial Aid Office can only speak directly with the student unless an Authorization to Disclose Student Records has been submitted for the applicable school year. Certain information will not be disclosed even with student permission.
• Repeat Coursework. Degree-applicable courses may count toward a student’s financial aid enrollment until a passing grade is earned. Once a passing grade has been earned, only one additional attempt may count for funding, and only if both (1) the passing grade was earned at Hawaiʻi CC, and (2) the repeat attempt is at Hawaiʻi CC.
• Transfer Students. Transfer students may be required to submit transcripts before financial aid eligibility can be determined.
• Unclassified and Early College. Unclassified and early college students are not eligible for financial aid.

Verification is an audit process that confirms the accuracy of information reported on the FAFSA. Most students are selected for verification by the US Department of Education, both randomly and based on specific factors, such as common mistakes or mathematical improbabilities.

Hawaiʻi CC uses a software program called ProVerifier+ to manage the verification process. Students selected for verification must log into ProVerifier+ and complete any requirements listed before their financial aid eligibility can be determined. Students are encouraged to complete all requirements as quickly as possible to avoid financial aid delays. If any discrepancies are found as a result of verification, corrections are made to the student’s FAFSA and eligibility is recalculated.

When a recipient of federal financial aid completely withdraws, the Financial Aid Office must determine whether or not they earned all of their Federal Title IV financial aid. The Financial Aid Office has 45 days, from the earlier of the date that the student officially withdrew or the date that the school became aware the student unofficially withdrew, to calculate and return unearned aid according to the federal formula.

Students who withdraw online using their UH Services account or withdraw with the assistance of the Admissions and Records Office are considered to have officially withdrawn. Students who do not earn any passing grades may be considered to have unofficially withdrawn if the reason they did not pass any courses is because they stopped attending prior to the end of the payment period.

Students are generally considered to have earned all of their federal financial aid if they attended at least 60% of the days in the payment period. Attendance is based on documented participation in academically related activities, such as:

• Attending a synchronous class, lecture, recitation, or field or laboratory activity, physically or online, where there is an opportunity for interaction between the instructor and students;
• Submitting an academic assignment;
• Taking an assessment or an exam;
• Participating in an interactive tutorial, webinar, or other interactive computer-assisted instruction;
• Participating in a study group, group project, or an online discussion that is assigned by the institution; or
• Interacting with an instructor about academic matters.

Academically related activities do not include activities where a student may be present but not academically engaged, such as:

• Living in institutional housing,
• Participating in the school’s meal plan,
• Logging into an online class or tutorial without any further participation,
• Participating in academic counseling or advisement.

Any unearned aid must be returned to the US Department of Education, either by the student or the school, according to the federal return of funds formula. Unearned Title IV financial aid is returned in the following order:

1. Federal Unsubsidized Direct Student Loans
2. Federal Subsidized Direct Student Loans
3. Federal Direct Parent PLUS Loans
4. Federal Pell Grants
5. Federal Iraq and Afghanistan Service Grants
6. Federal Supplemental Educational Opportunity Grants

If Federal Pell Grant or Federal Supplemental Educational Opportunity Grant funding is required to be returned by the student, the school will return it on their behalf, resulting in a balance owed to the school. If loan funding is required to be returned by the student, the student must work with their loan servicer to return the unearned funds. If the amount of financial aid disbursed is less than the amount earned, the student may be eligible for a post-withdrawal disbursement. Students are notified via email if they are required to return funds.

The federal formula for determining financial need using FAFSA data does not account for special or unusual circumstances that may affect a student’s ability to pay for college. Students who have experienced a personal or family loss of income or benefits may submit a Petition for Special Circumstances. Students for whom it may be unreasonable or impossible to contact parents for FAFSA completion purposes may submit an Appeal for Unusual Circumstances.

Petitions for Special Circumstances and Appeals for Unusual Circumstances take up to four weeks to process and cannot be approved after the applicable payment period has ended. Students should submit their appeals no later than 30 days before the last day of instruction to ensure there is adequate time for review. Approval is at sole discretion of the Financial Aid Manager, or their designee, and is not subject to further review. All appeal decisions are communicated via UH email.