Students receiving Federal Title IV Financial Aid at the United States Merchant Marine Academy (USMMA) must comply with federal regulations and institutional standards governing academic standing and fund retention.

Satisfactory Academic Progress (SAP)

To remain eligible for Federal Student Aid (Title IV), midshipmen must maintain academic proficiency and make satisfactory progress toward earning their degree.

Academic Proficiency Standards

Midshipmen must meet both quantitative and qualitative benchmarks to maintain eligibility:

• Credit Completion Ratio (Pace): A midshipman’s cumulative ratio of attempted credits to earned credits must never fall below 67%.
• Grade Point Average (QPA): A midshipman is deemed academically proficient if their Cumulative Quality Point Average (CQPA) is at least 2.0, and their term QPA is at least 2.0 with no 'F' grades earned during that term.

Warning Period & Loss of Eligibility

• One-Term Warning: Midshipmen who fall below proficiency standards will be placed in a deficiency status in accordance with the USMMA Academic Policies Handbook and will receive one term of warning for financial aid eligibility.
• Loss of Aid: If a midshipman does not restore academic proficiency by the end of the warning term, their financial aid eligibility will be terminated.
• Regaining Eligibility: Midshipmen must meet all proficiency standards to regain eligibility for Title IV financial aid.

For complete details on academic progress and deficiency statuses, refer to the USMMA Academic Policies Handbook (available on the Academy Intranet) or contact the Office of the Academic Dean and Provost at (516) 726-5836.

Withdrawal Policy & Federal Return of Title IV Funds (R2T4)

Federal law dictates how USMMA must recalculate Federal Student Aid eligibility when a student officially or unofficially withdraws from the Academy before completing a term.

Covered Programs

This policy applies to the following federal assistance programs at USMMA:

• Federal Pell Grants
• Direct Subsidized Loans
• Direct Unsubsidized Loans
• Direct PLUS Loans (Parent Loans)

How Earned Aid is Calculated

• Pro Rata Formula: Earned aid is determined based on the percentage of the payment period or enrollment period completed. For example, completing 30% of a term means earning 30% of the scheduled aid.
• The 60% Threshold: Once a midshipman completes at least 60% of the payment period or enrollment period, they have earned 100% of their scheduled federal assistance for that term.
• First-Year 30-Day Loan Rule: First-time, first-year undergraduate students who withdraw before completing the first 30 days of their academic program are ineligible to receive any Direct Loan disbursements.

Return of Unearned Funds & Allocation Order

If excess unearned funds must be returned to the U.S. Department of Education, USMMA will return the lesser of the unearned percentage multiplied by institutional charges, or the total amount of excess funds.

USMMA must return its required portion no later than 45 days after determining the withdrawal date.

Student Repayment Responsibilities

• Loan Repayment: Any loan funds the student or parent must return are repaid according to the terms of the Master Promissory Note (MPN) through scheduled payments to the loan servicer.
• Grant Repayment: If a student must return unearned grant funds (an overpayment), the maximum amount required to be repaid is half of the grant funds received or scheduled. Grant overpayments of $50 or less are waived. Students must arrange repayment with USMMA or the U.S. Department of Education.
• Institutional Balance Note: Federal Title IV withdrawal calculations are separate from USMMA's institutional refund policies. Midshipmen who withdraw may still owe an unpaid balance directly to USMMA for institutional charges or returned aid.

Support & Resources

• Federal Student Aid Information Center:
  • Phone: 1-800-4-FEDAID (1-800-433-3243) | TTY: 1-800-730-8913
  • Online Portal: StudentAid.gov