Leave of absence is a temporary, approved interruption of enrollment that, when it meets federal conditions, is not treated as a withdrawal for Title IV return-of-funds purposes.
How it works
The student submits a written request before the leave begins. The institution approves or denies it according to its policy. If approved and the federal conditions are met, no return-of-funds calculation is performed at the start of the leave. The student resumes at the point of interruption. If the student does not return, the institution performs the return calculation using the original last date of attendance.
Example: a student in an online program requests a 60-day leave for medical reasons, receives approval, and returns on schedule to the same courses. No Title IV funds are returned. A second student who simply stops participating without an approved leave is treated as withdrawn.
How it differs
Stop-out is an informal interruption that usually counts as a withdrawal for aid purposes. Official withdrawal ends enrollment and triggers return-of-funds rules immediately. A deferment or forbearance addresses loan payments, not enrollment status.
Common errors
Granting retroactive leaves that do not meet the advance-request rule. Allowing leaves longer than 180 days in a 12-month period without treating the excess as a withdrawal. Assuming every institutional “leave” automatically satisfies the federal Title IV definition.
References
- 1. 34 CFR 668.22 leave of absenceConditions that avoid R2T4
- 2. Federal Student Aid LOA guidanceApproved leave requirements
Leave of absence is a temporary, approved interruption of enrollment that, when it meets federal conditions, is not treated as a withdrawal for Title IV return-of-funds purposes.