Transcript FEDERAL PROGRAM INTEGRITY REGULATIONS

FEDERAL PROGRAM
INTEGRITY REGULATIONS
Spring 2011
Webinar Series
Webinar 2
PI REGS: AGENDA
• Gainful Employment Reporting and
Disclosures §600.2, 600.4, 600.5,
600.9, 668.6
• Satisfactory Academic Progress §668.16(e),
668.32(f), 668.34
• Written Arrangements §668.5
• State Authorization §600.9 and §668.43
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PI REGS: GE REPORTING AND
DISCLOSURES
• Gainful employment:
The HEA defines a proprietary school as an
institution that “provides an eligible program
of training that prepares students for gainful
employment in a recognized occupation.”
• Public or private non-profit schools are
defined as “institutions of higher education”
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PI REGS: GE REPORTING AND
DISCLOSURES
• These reporting and disclosure requirements
apply to all programs that lead to gainful
employment in a recognized occupation
– All programs at proprietary schools
(except BA degrees in liberal arts)
– Non-degree (certificate or diploma) programs at
public and non-profit institutions
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PI REGS: GE DISCLOSURES
• Disclosures must be made by July 1, 2011
– Intent of the provisions is to “enable students to
make an informed choice about a program—by
making the disclosures in a clear, timely, and
meaningful manner.”
– Information must be available in school’s
“promotional materials conveyed to prospective
students.”
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PI REGS: GE DISCLOSURES
• Disclosure information must be:
– Prominently displayed on the home page of the
program website
– Posted in an “open format that can be retrieved,
downloaded, indexed, and searched by commonly
used Web search applications.”
• Open-format = platform-independent and machinereadable
– Simple and meaningful
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PI REGS: GE DISCLOSURES
• Website must provide “prominent and direct
links” to the program web pages on any other
pages “containing general, academic, or
admissions information about the program.”
• Institutions must use the disclosure form
developed by ED when it becomes available; it
will be a template similar to the NPC
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PI REGS: GE DISCLOSURES
• For each program, the institution must
disclose:
– Occupations by name and SOC codes that the
program prepares students to enter, along with
the links to occupational profiles on O*Net
– On-time graduation rate
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PI REGS: GE DISCLOSURES
– Tuition and fees, books and supplies, room and
board the institution charges a student for
completing the program within normal time
– Placement rate for completers
– Median loan debt as determined by ED
• Median = middle in a range; not average (mean)
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PI REGS: GE DISCLOSURES
• Occupations by name and SOC code
– http://online.onetcenter.org/crosswalk/CIP
• Enter the full 6 digit CIP code –institution must post the
links and names of the occupations that are listed
• For CIP codes that result in more than 10 occupations,
the school may “provide links to a representative
sample of the SOCs for which its graduates typically
find employment within a few years after completing
the program.”
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PI REGS: GE DISCLOSURES
• On-time graduation rate
– Defined by award year (July 1st through June 30th)
– Of the students who completed the program in
the most recently completed award year, who
completed the program within normal time
– “Normal time” is what the institution publishes in
the catalog (§668.41(a)) and may include make-up
days
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PI REGS: GE DISCLOSURES
– Regardless of transfers, program changes, LOAs
• Students who transfer in must complete within the
normal program length from the point of entry,
regardless of any transfer hours
– Excused absences are permissible within the
lesser of 10% of the payment period clock hours
or the threshold established by the state or
accrediting agency
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PI REGS: GE DISCLOSURES
• On-time graduation rate is NOT
– ACCET completion rate
– State completion or graduation rate
– SRTK completion rate
• Methodology focuses on the concept of ontime, not program completion overall
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PI REGS: GE DISCLOSURES
• Tuition and fees, books and supplies, room
and board the institution charges a student
for completing the program within normal
time
– Must disclose on the same program web page as
the other information
– Books and supplies are typical costs for
completing the program, unless included as part
of tuition and fees
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PI REGS: GE DISCLOSURES
– Room and board charges if the institution
provides it
– May disclose other costs, such as transportation
and living expenses
– Must include a link or access to the program cost
information required under §668.43(a)
• Institutional information requirements—includes
tuition and fees, room and board, books and supplies,
estimates of transportation costs, any additional costs
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PI REGS: GE DISCLOSURES
• Placement rate
– NCES will develop a placement rate methodology
and “the processes necessary for determining and
documenting student employment and reporting
placement data to the Department” using IPEDS
– Until that methodology is in place, schools must
use the state or accrediting agency placement rate
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PI REGS: GE DISCLOSURES
– Institution must disclose on website and in
promotional materials placement rate by program
• If available or can be determined from institutional
placement rate calculations
– The institution must identify the accrediting
agency or state agency under whose requirements
the placement rate was calculated
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PI REGS: GE DISCLOSURES
• Median Loan Debt
– Institutions report institutional financing plan debt
to ED—”the amount a student is obligated to
repay upon completing the program.”
– Institutions must also report any private education
loans it knows about
– Private education loans can include institutional
loans
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PI REGS: GE DISCLOSURES
– Private education loans do not include an
extension of credit if 1) the term of the extension
of credit is 90 days or less OR 2) interest is not
charged and the term of the extension of credit is
one year or less, even if payable in more than four
installments
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PI REGS: GE DISCLOSURES
– In the preamble, ED states that:
“any loan, extension of credit, payment plan, or other
financing mechanism that would otherwise not be
considered a private education loan but that results in a
debt obligation that a student must pay to an
institution after completing a program, is considered a
loan debt arising from an institutional financing plan
and must be reported as such under §668.6(a)(4).”
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PI REGS: GE DISCLOSURES
– ED will use the reported private loans and
financing plan data in conjunction with Title IV
loan debt to determine a median loan debt for
each educational program
• Title IV loan debt is both FFEL and DL, from NSLDS
• Does not include debt incurred by students at a prior
institution, unless there is common ownership or
control, or otherwise related
• If a student changes programs, ED associates the
amount of debt incurred by the student to the highest
credential program completed
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PI REGS: GE DISCLOSURES
– Example:
Student attends Medical Assisting certificate
program at ABC Institute. While enrolled in that
program, student borrows $9,500 Stafford loans.
Student completes MA certificate and enrolls in
Medical Office Management OAD. While enrolled
in the OAD program, she borrows an additional
$15,000.
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PI REGS: GE DISCLOSURES
If she does not complete the OAD program, only
the debt associated with the MA program
($9,500) is used by ED when calculating the
median loan debt for the MA certificate program.
If she does complete the OAD program, the total
debt ($9,500 + $15,000 = $24,500) is used by ED
when calculating the median loan debt for the
OAD program.
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PI REGS: GE DISCLOSURES
– ED will provide to schools for each program
offered by the school:
• Median loan debt (total)
• Median loan debt—FFEL and Direct Loans
• Median loan debt—private and institutional financing
– Until ED provides the info, schools must calculate
themselves (per Regulatory Update Workshop)
– School includes this information on the program
web page and in promotional materials
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PI REGS: GE REPORTING
• Reporting is required by October 1, 2011
– Will be annual reporting requirement with
electronic format; DCL will be published with
details
– Applies to all gainful employment programs
currently offered by institution
– In future years, report will be due no earlier than
September 30th
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PI REGS: GE REPORTING
• In first report due October 1, 2011, school
must report on
– 2006-2007 award year (if available)
– 2007-2008, 2008-2009, 2009-2010 award years
• If a school cannot provide some or all of the
data for any award year, it must provide an
explanation to ED as to why the data is not
available
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PI REGS: GE REPORTING
• Reporting data for each award year:
– Identifying information about the school and
about each student who enrolled in each
program, along with the CIP code of the program
if the student began attending the program;
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PI REGS: GE REPORTING
– For each student who completed a program
during the award year:
• The name and CIP code of the program, and the date
the student completed the program;
• The amounts the student received in private education
loans and the amount of institutional financing the
student owes the school upon completion;
• Whether the student matriculated to a higher
credentialed program at the school, or to such a
program at another school (if there is documentation);
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PI REGS: GE REPORTING
– For each program, by name and CIP code, the
total number of students enrolled in the program
at the end of the award year, and identifying
information for those students
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PI REGS: GE REPORTING
School Perspective
DCI—SAMPLE PROGRAM DISCLOSURE
DCI Medical Assistant – DCI Website
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PI REGS: SATISFACTORY
ACADEMIC PROGRESS
• Institutions must notify students of the
effective date of the revised policy
– Crossover payment periods: institution may
decide to use the current SAP policy; this must be
addressed with the effective date of the new
policy
• Institutions may evaluate different categories
of students differently
– Must be consistent within each category
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PI REGS: SATISFACTORY
ACADEMIC PROGRESS
• SAP evaluations must occur at the end of a
payment period
– For non-term programs, this may be a significant
change and could be difficult to implement
– Payment period end dates can vary by student
• For programs one academic year or less, SAP
must be evaluated at the end of each payment
period
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PI REGS: SATISFACTORY
ACADEMIC PROGRESS
• For programs longer than an academic year in
length, SAP is measured at the end of each
payment period, or at least annually to
correspond with the end of a payment period
• GPA and pace (rate of progress) must be
measured at each evaluation
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PI REGS: SATISFACTORY
ACADEMIC PROGRESS
1. Minimum GPA
– A student must have a C average or equivalent
after two years of attendance, regardless of
enrollment status
2. Pace
– “the pace at which a student must progress
through his or her educational program to
ensure that the student will complete the
program within the maximum timeframe. . .”
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PI REGS: SATISFACTORY
ACADEMIC PROGRESS
– For credit hour programs, pace must be measured
as credits earned vs. credits attempted
– Remedial coursework may be included when
determining pace; this is up to the institution
– Transfer credits MUST be counted as both earned
and attempted credits
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PI REGS: SATISFACTORY
ACADEMIC PROGRESS
• SAP Statuses
– Warning and Probation are defined and must be
used as defined in the regs
• Both allow for one payment period of eligibility
• Student must be in attendance
• Not possible to have consecutive payment periods on
warning or on probation; it is possible to have more
than one payment period (non-consecutive) on either
throughout a student’s academic career
– New concept of Academic Plan
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PI REGS: SATISFACTORY
ACADEMIC PROGRESS
• Financial Aid Warning Status
– May only be used by institutions that evaluate SAP
at the end of every payment period
– The first time a student is not meeting SAP
standards, he or she can be placed on Warning,
without an appeal
– The student continues to be aid eligible
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PI REGS: SATISFACTORY
ACADEMIC PROGRESS
• Financial Aid Probation Status
– Student is not meeting SAP standards and appeals
• After payment period on Warning OR
• If institution evaluates SAP annually for that program
(instead of after every payment period)
– The appeal is granted and the student can regain
SAP status within one payment period on
Probation
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PI REGS: SATISFACTORY
ACADEMIC PROGRESS
• Appeals
– Optional; institutions do not have to allow appeals
– Institutions decide how and when students may
appeal; how often and how many times a student
may appeal
– Appeals must contain two elements:
• Why the student failed to make SAP; AND
• What has changed in the student’s situation to allow
the student to demonstrate SAP at the next evaluation
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PI REGS: SATISFACTORY
ACADEMIC PROGRESS
– The basis on which a student may appeal must be
included in the policy: “The death of a relative, an
injury or illness of the student, or other special
circumstances. . .”
– Outcome of granting an appeal:
• Probation (one payment period) OR
• Academic Plan
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PI REGS: SATISFACTORY
ACADEMIC PROGRESS
• Academic Plan
– Optional for institutions to include in their SAP
policy; “Academic plans need not be complicated
or detailed. . .”
– Specific to that student
– Ensures that student is able to meet SAP
standards by a specific point in time
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PI REGS: SATISFACTORY
ACADEMIC PROGRESS
– “the institution has the flexibility to specify
whether students on an academic plan would
have their academic progress evaluated at the
same time as other students, or whether they
would be subject to more frequent SAP
evaluations. They should determine what is best
for students and make their policy clear in their
SAP standards.”
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PI REGS: SATISFACTORY
ACADEMIC PROGRESS
• Maximum Timeframe
– 150% is unchanged; institutions define MTF as
they determine is most appropriate
– The 150% MTF applies only to Title IV eligibility;
whether a student can continue in the program
and complete his or her program is established by
academic criteria
• Notification
– Only required for students if the results of the SAP
evaluation affects the student’s T4 eligibility
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PI REGS: SATISFACTORY
ACADEMIC PROGRESS
School Perspective
DCI Sample SAP POLICY
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PI REGS: WRITTEN ARRANGEMENTS
• Does not apply to public or private nonprofit
institutions
• Institutions not under common ownership or
control: no limitation
• Institutions under common ownership or
control: degree or certificate-granting
institution must provide more than 50% of the
program
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PI REGS: WRITTEN ARRANGEMENTS
• Degree or certificate-granting institution is
required to have “all the necessary approvals
to offer the educational program in the format
in which it is being offered”
– Distance education, for example: institution has
written arrangement with another entity to offer
some DE courses; but if the proportion goes over
50% of a program, accrediting agency approval is
required
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PI REGS: WRITTEN ARRANGEMENTS
• Arrangements between eligible and ineligible
institutions or organizations permissible if the
ineligible institution has not:
– Had its Title IV eligibility terminated;
– Voluntarily withdrawn from Title IV eligibility
under a termination, show-cause, suspension or
similar order from the state, accrediting agency,
guarantor, or ED;
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PI REGS: WRITTEN ARRANGEMENTS
– Had its Title IV certification revoked by ED;
– Had its Title IV recertification application denied
by ED; OR
– Had its Title IV certification (initial) application
denied by ED.
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PI REGS: WRITTEN ARRANGEMENTS
• The institution must include in its consumer
information a description of the written
arrangements (§668.43(a)(12)) :
– The portion of the program the degree or
certificate-granting institution is not providing;
– The name and location of the other institution or
organization that is providing that portion of the
program;
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PI REGS: WRITTEN ARRANGEMENTS
– The method of delivery of the portion of the
program not provided by the degree or certificategranting institution; and
– Estimated additional costs a student may incur as
the result of enrolling in a program that is
provided in part under the written arrangement;
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PI REGS: STATE AUTHORIZATION
• Institutions must be state approved or
licensed—if a state does not have an approval
or licensing process, the state must implement
one
• The state must have a process to review and
act on complaints
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PI REGS: STATE AUTHORIZATION
• Institutions must make available to students
and prospective students information about
filing complaints with their accrediting
agencies and with the state approval or
licensing entity and any other relevant state
agency that would handle a student’s
complaint
– Could be multiple agencies
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PI REGS: STATE AUTHORIZATION
• An institution that offers distance education
programs must provide the contact
information for the state in which it is located
and also provide the information for states in
which it provides DE courses to the extent that
the states have licensure or approval for
institutions providing DE coursework
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PI REGS: STATE AUTHORIZATION
• An institution that offers distance or
correspondence education in a state in which
it is not physically located “must meet any
State requirements for it to be legally offering
distance or correspondence education in that
State. An institution must be able to
document upon request from the Department
that it has such State approval.”
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PI REGS: STATE AUTHORIZATION
• For more information on states’ distance
education regulations:
– http://wcet.wiche.edu/advance/state-approval
– WICHE Cooperative for Educational Technologies
– Go to “State Approval: A ‘Starter’ List”
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PI REGS: STATE AUTHORIZATION
• DCL GEN-11-05:
– For the 2011-2012 award year only, “the
Department will consider an institution to be
making a good-faith effort to prospectively comply
with the distance education regulations for State
authorization, if—
• The institution has applied for approval of its offerings
in such a State, either in response to the publication of
the regulations, or earlier if the State notified the
institution that such approval was required;
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PI REGS: STATE AUTHORIZATION
• The institution is able to document its application for
approval and the application’s receipt by the State; and
• The institution notifies the Department when the State
issues its decision on the pending applications for
approval.”
– If a state does not license or approve institutions
for DE coursework, the institution is considered to
be legally operating in that state
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PI REGS: STATE AUTHORIZATION
– The institution must identify where a student is
located and seek approval from that state.
“While the location of the student is initially
determined at the time of enrollment in a
program, consistent with other determinations of
student eligibility, it must also be reevaluated each
time an institution makes a new award to a
student.”
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PI REGS: STATE AUTHORIZATION
– There is no federally set minimum number of
students that triggers the requirement for state
licensure or approval
– Some states may have de minimus requirements
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CONTACT INFORMATION
Judy Hendrickson [email protected]
Kris Strom [email protected]
Peggy Tiderman [email protected]
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