Transcript General Provisions (non

2011 MSFAA
Winter Training Conference
February 2, 2011
Federal Student Aid (FSA)
Conference Review – Non-Loan Issues
Nov. 30 to Dec. 3, 2010 Orlando
4 General Sessions & 60 Breakout Sessions
View all presentations:
http://ifap.ed.gov/presentations/2010FSAConference.html
Selected Sessions to Review
• Use of Professional Judgment to Address Families
Impacted by the Economy (#30)
– Diane Fleming, Central Michigan University
• Veterans and Active Military (#34)
– Melissa Crips, Cooley Law School
• Adding Programs and Locations (#40)
– Cindy Hermsen, Oakland University
• Consumer Information Disclosures
– Dave DeBoer, Davenport University
• General Provisions and Non-loan Issues (#25 & #26)
– Al Hermsen, Wayne State University
Professional Judgment to Address
Families Impacted by the Economy
FSA Session #30
Diane Fleming
Associate Director,
Programs and Client Services
Central Michigan University
[email protected]
Authority and Guidance
• Sec. 479A of HEA
• Cannot be regulated by ED
• Case by case basis
• DCLs offer clarification on specific issues
DEL-GEN 009-04: encourages FAAs to consider special circumstances,
i.e., loss of income, unemployment, etc.
DCL-GEN-09-05: Unemployment insurance benefit letters can be
used as documentation
DCL-GEN-10-05: Verifies prior DCLs continue to be in effect
• Applicable areas:
Dependency override
EFC
COA
Unsubsidized loan eligibility
• New SAP regs limit use of PJ to determining:
Acceptable mitigating circumstance
Acceptable appeal on what has changed that will allow the student
to make SAP
DEPENDENCY OVERRIDE
• Independent status defined in section 480(d) HEA – 1 of 8 criteria on FAFSA, or
• FAA can make a student independent by documented unusual circumstance
• Conditions that DO NOT qualify as unusual:
•Parents refuse to contribute
•Parents unwilling to provide information
•Parents don’t claim student as a tax exemption
•Student demonstrates total self-sufficiency
• Examples of unusual circumstances:
•Voluntary/involuntary removal from parents for safety/health reasons
•Parental incapacity: incarceration, disability, mental or physical illness
•Location of parent(s) unknown
•Other documented circumstance
• Annual determination with documentation
• Cannot make an independent student dependent
• As of 10FY, can accept another institution’s dependency override
EFC & COA – Section 479A – HEOA of
1965, as amended
• EFC: Adjust a data element in FM (e.g., AGI)
• Can’t arbitrarily change FM formula
•asset conversion rate or the tables
•adjust PC, SC, or EFC
•make adjustment on the initial FAFSA
• Must verify base year data if selected for
verification & resolve any conflicting information
• Adjustment only valid at the school making it
• Must use resulting EFC consistently for all FSA
funds
COA
COA is determined by statute for
• Full-time students:
•Tuition & fees
•Room & board
•Books, supplies, computer allowance
•Transportation
•Miscellaneous personal expenses
•Dependent care allowance
•Disability related expenses
•Study abroad expenses
•Cooperative education expenses
•Loan fees
•Cost of obtaining first professional credential or license (must be enrolled)
•Less than half-time students:
•Same as above except room & board is limited to no more than 3 semesters/2 consecutive
•Students enrolled in correspondence program:
•Same as above except room & board is limited to required residential training
Incarcerated students:
•Tuition & fees
•Books & supplies
Unsubsidized Loan Eligibility
FAAs may offer a dependent student an unsubsidized
loan without parental data being provided on the
FAFSA if the FAA verifies that:
Parent(s) have ended financial support (date)
and will not provide financial support in the future
Parent refuses to file the FAFSA
•Unsub loan amount:
Eligible for base amount for grade level & additional
$2,000
Veterans and Active Military
FSA Session #34
Melissa Crips
Deputy Director of Financial Aid
Thomas M. Cooley Law School
[email protected]
Military Veterans Benefits
•Post Active Duty Student Deferment
* Applies to Nat Guard and Reserve or Retired members for
service on/after 10/1/2007
* Borrower must have been enrolled at least ½ time, or within 6
months of time when called to active duty service
* Active duty service:
FT in the active duty (Reserve/Retired)
State Active Duty (members of Nat Guard)
* Begins: On the date the eligible active duty service ends
* Ends: Resume ½ enrollment or 13 months after completion date
of active duty service
Readmissions Requirements
• An institution may not deny readmission to a student who was
admitted, then left to perform service
• The institution must readmit student with same academic status
• Readmission regs supersede state law
Service must be:
- Voluntary or involuntary in Armed Forces, Nat Guard, Reserves
- Active duty service/training or FT Nat Guard
- More then 30 consecutive days under a call to order or active
duty
Readmissions Requirements (Cont)
* The student qualifies for readmission if:
-The school is given notice of absence for service
-The cumulative length of absences does not exceed five
years
-The student gives notice of his/her intent to return
* The institution is not required to readmit the student if:
-The student is not prepared to return
-The student is unable to complete the program
-No reasonable efforts the institution can take to prepare
the
student to resume or complete the program
* The institution carries the burden of prove by
preponderance of
evidence that the student is not prepared to resume or
complete the program
2011 Upcoming Changes Post 9/11
• Veterans Education Assistance Improvements Act of 2010.
View all updates at www.gibill.va.gov
* Simplifies tuition & fee rates for public schools. Pays all
public school in-state tuition and fees.
* Private & foreign schools are capped at $17,500 annually.
Yellow Ribbon program still available.
* Break/interval pay is no longer payable to ANY benefit
program. This entitlement will be used during future
enrollment.
* Reimbursement of fees to take exams: SAT, ACT, GMAT, LSAT
Website and Contact Info
* www.ed.gov Nov 2010
Related to Veterans: Education, Veterans
Employment, Regulation changes, and VA programs
for service members and their families
* Questions on DOE website for military contact Len Clark
Email: [email protected]
Phone: 202-401-3855
Schools Planning to Add a
Program or Location
FSA Session #30
Cindy Hermsen
Director, Financial Aid
Oakland University
[email protected]
Eligibility Documents
• E-App
• Program Participation Agreement (PPA)
• Eligibility and Certification Approval Report
(ECAR)
Adding Programs
School Determines Eligibility
• The program leads to an associate, bachelor,
professional, or graduate degree and the
school has already been approved to offer
programs at the level
Adding Programs
School Determines Eligibility
• The added program is at least a 10-week
program of 8 semester hours, 12 quarter
hours, or 600 clock hours, and prepares
students for gainful employment in the same
or related recognized occupation of a program
already approved by the Dept of Ed as an
eligible program at the school
Adding Programs
School Determines Eligibility
• School must have state and accrediting agency
approvals for the program
• Include “self-certified” program on next
recertification
• School is liable for FSA funds if school
determined eligibility is incorrect
Adding Programs
Department of Ed Approval Required
• Programs under 600 clock hours
• All programs which do not fall under the
school determines eligibility guidelines
• Submit an E-App and copies of accrediting
agency and state approvals
• Department of Ed will evaluate the program
• School can’t disburse funds until receipt of an
Approval Letter from Dept of Ed
Adding Locations
• ECAR lists eligible locations
• Separate locations and extensions are not
automatically eligible
• If 50% or more of a program is offered at a
location, the school must notify the Dept of Ed
Adding Locations
Reporting a New Location
• School must not disburse FSA funds at a new
location until it is reported to the Dept of Ed
with state legal authorization and accrediting
agency approval
Adding Locations
Applying for Approval of a New
Location
• School must wait for Dept of Ed approval
before disbursing funds if the school is
Provisionally certified
On cash monitoring or reimbursement
Acquiring assets of another institution
Subject to loss of eligibility due to default rate
Required by Dept of Ed to report and wait
Consumer Information Disclosures
David J. De Boer
Executive Director of Financial Aid
Davenport University
[email protected]
Disclosure of Consumer
Information Problem:
1. Information that institutions are
required to disclose by the HEA may be
difficult to find, compare, and use
2. A high degree of variation in both the
content and structure of institutions’
websites
Suggestions for implementing
1. Focus both on compliance and communication.
2. Develop a single web page on the institution’s
website that provides hyperlinks to the HEA
disclosure information.
3. Adopt a “3-click” approach.
4. Use consumer-friendly labels and language
whenever possible, and avoid
institutional/technical jargon.
5. Use a common set of content titles.
Non-loan Disclosures
(1) Notice of Availability of Institutional and Financial Aid Information
(2) Contact Information for Assistance in Obtaining Institutional or Financial Aid Information
(3) Student Financial Aid Information
(4) Notice of Federal Student Financial Aid Penalties for Drug Law Violations
(5) Privacy of Student Records – Family Educational Rights and Privacy Act (FERPA)
(6) Consumer Information on College Navigator Website
(7) Facilities and Services Available to Students with Disabilities
(8) Student Body Diversity
(9) Price of Attendance***
(10) Net Price Calculator***
(11) Refund Policy, Requirements for Withdrawal and for the Return of Title IV, HEA Financial Aid
(12) Textbook Information (ISBN readily available)***
(13) Academic Program (Educational Programs, Instructional Facilities, and Faculty)
(14) Transfer of Credit Policies and Articulation Agreements
(15) Institutional and Program Accreditation, Approval, or Licensure
(16) Copyright Infringement Policies and Sanctions (Including Computer Use and File Sharing)
(17) Teacher Preparation Program Report
(18) Drug and Alcohol Abuse Prevention Program
(19) Vaccinations Policies
(20) Security Report (Including Emergency Response and Evacuation Procedures), Timely Warnings, and Crime Log
(21) Security Report − Missing Person Notification Policy
(22) Fire Safety Report and Fire Log
(23) Information for Crime Victims About Disciplinary Hearings
(24) Retention Rate
(25) Completion/Graduation and Transfer-out Rates (Including Disaggregated Completion/Graduation Rates)***
(26) Completion/Graduation and Transfer-out Rates for Students Receiving Athletically Related Student Aid (Including Disaggregated
Completion/Graduation Rates)***
(27) Placement in Employment***
(28) Job Placement Rates***
(29) Types of Graduate and Professional Education In Which the Institution's Graduates Enroll
(30) Intercollegiate Athletic Program Participation Rates and Financial Support Data
(31) Voter Registration Forms
Loan Disclosures
(L-1) State Grant Assistance
(L-2) Student Loan Information Published by Dept
of Education
(L-3) National Student Loan Data System
(L-4) Entrance Counseling for Student Borrowers
(L-5) Exit Counseling for Student Borrowers
(L-6) Private Education Loan Disclosures, including
Self-Certification Form
(L-7) Code of Conduct for Education Loans
(L-8) Preferred Lender Lists
(L-9) Preferred Lender Arrangements
Resources
The disclosures required under the HEA (as amended by the HEOA)
include:
• Information that is required to be posted on an institution’s website
• Information that may be posted on website as a means to make it
available
• Information that may be posted on website, but specified
individuals must receive a notice of its availability
• Information that may be posted on website, but also must be
distributed to specified individuals; and
• Information that is not appropriate for web posting (including
information for crime victims about disciplinary hearings and
certain information relating to education loans).
• http://nces.ed.gov/pubs2010/2010831rev.pdf
• FSA Handbook, Vol. 2, Chap. 6 (includes a grid of who, what, how,
when)
• Sample: http://www.grcc.edu/about/about_grcc/compliance.html
General Provisions and Non-Loan
Program Issues –
Institutional and Student
FSA Sessions #25 and #26
Al Hermsen
Senior Director,
Student Financial Aid
Wayne State University
[email protected]
General Provisions and Non-Loan
Program Issues – Institutional
•State Authorization (§§600.4(a)(3), 600.5(a)(4), 600.6(a)(3),
600.9, and 668.43(b))
•Credit Hour (§§600.2, 602.24, 603.24, and 668.8)
•Gainful Employment (§§600.2, 600.4, 600.5, 600.6, 668.6, and
668.8)
•Misrepresentation (Subpart F of Part 668)
•Written Arrangements (§§668.5 and 668.43)
•Incentive Compensation (§668.14(b))
•Disbursement (§§668.164(i), 685.102(b), 685.301(e), 686.2(b), and
686.37(b))
•Return of Title IV Funds (§§668.22(a), 668.22(b), 668.22(f), and
668.22(l))
State Authorizations
• In order for an institution to be eligible to
participate in the Title IV, HEA programs, it must
be legally authorized to provide postsecondary
education by the State in which it is located.
• If an institution offers education through distance
or correspondence education to students in a
State in which is it is not physically located or in
which it is otherwise subject to State jurisdiction,
it must meet State requirements to be legally
offering postsecondary distance or
correspondence education in the State. It must
be able to document the State’s approval, upon
request.
Credit Hour
• To establish consistent measure of eligibility
for Federal funding
• Provides that a credit hour is an institutionally
established equivalency of amount of work
that reasonably approximates not less than
the measures in the definition
Credit Hour (continued)
• Reflects intended learning outcomes &
evidence of student achievement that
approximates not less than—
– One hour classroom/two hours out of class
student work, or
– Equivalent work for other academic
activities as established by the institution
Gainful Employment
• All programs at for-profit schools except for—
– Program leading to baccalaureate degree in
liberal arts (proprietary institution)
• Any program at a public or not-for-profit
school that is not—
– A program leading to degree
– A transfer program of at least two years
Gainful Employment (continued)
• Institution must annually submit information
on students who complete a program leading
to gainful employment in a recognized
occupation including—
- Student and program information
- Amount from private loans or finance plans
- Matriculation information
- End of year enrollment information
Misrepresentation
• In general, the misrepresentation regulations
describe—
- The actions ED may take if it determines that
an institution has engaged in substantial
misrepresentation
- The types of activities that constitute
substantial misrepresentation
Written Arrangements
• Clarify that another institution may provide
part—not all—of an educational program
under a written arrangement
• Clarify that degree-granting institution has all
necessary approvals to offer the educational
program in the format in which it is being
provided (i.e., distance education)
Incentive Compensation
Institutional requirement—
• School will not provide a commission/bonus or
other incentive payment based, in any part
directly or indirectly, on success in securing
enrollments or financial aid to any person or
entity engaged in any student recruiting or
admission activities or in making decisions
regarding awarding Title IV funds
Disbursement
• For Pell Grant eligible students
• Offers a way to purchase required books and
supplies—
- Student must be able to buy books and
supplies by 7th day of payment period unless
the institution knows the student isn’t attending
- May use stored value card, prepaid debit card,
or book store voucher
Return of Title IV Funds
• To ensure equitable treatment for students
who withdraw from credit hour programs,
regardless of whether the programs span the
length of the term
• An institution is required to take attendance if
an outside entity or the institution itself—
- Requires instructors to take attendance,
- Has a requirement that can only be met by
taking attendance or a comparable process
General Provisions and Non-Loan
Program Issues –Student
• High School Diploma (§668.16(p))
• Ability to Benefit (§668.32(e) and Subpart J of
Part 668)
• Verification (Subpart E of Part 668)
• Satisfactory Academic Progress (§§668.16(e),
668.32(f), and 668.34)
• Retaking Coursework (§668.2)
High School Diploma
• New requirement for institutions to develop and
follow procedures to evaluate a student’s high
school completion if—
• The institution or the Secretary has reason to
believe the high school diploma was not obtained
from an entity that provides secondary school
education
• Not a requirement to collect HS diplomas
• No Dept of Ed master list
• Does not apply to homes schooled students
Ability to Benefit
• New ATB option
- Completing hours applicable to an eligible
degree or certificate offered by the
institution
- 6 semester, trimester, or quarter hours OR
225 clock hours
Verification – effective 7/1/12
• Eliminates 30% limit
• Dept of Ed targeting error-prone items to select
applications to verify
• Institutions must verify all applicants selected by Dept of Ed
• Annual Federal Register notice will list data elements that
may be selected
• Institutions must continue to verify information they
believe is inaccurate
• Institutions keep flexibility to select additional information
or applications for verification
• Removed $400 tolerance - require all corrections over $25
Satisfactory Academic Progress
• New regulations provide—
- Continued flexibility for institutions in
establishing their SAP policies
- Additional flexibility for institutions that
monitor SAP more often than annually
- Definitions for “warning” and “probation”
- In general, a student who is not making SAP is
no longer eligible for Title IV aid
SAP (Continued)
• Financial Aid Warning
- Status assigned to a student who fails to make SAP at an
institution that evaluates SAP at the end of each payment
period
- Student may continue to receive Title IV aid for one payment
period (no appeal necessary)
• Financial Aid Probation
- Status assigned by an institution to a student who fails to make
SAP and who has appealed and has had eligibility for aid
reinstated
- Institution my impose conditions for student’s continued
eligibility to receive aid
SAP (Continued)
• Institutions that evaluate SAP each payment
period
– Student loses eligibility for Title IV aid
– Student may be placed on Financial Aid Warning for
one payment period
– Student must make SAP or may be placed on financial
Aid Probation after an appeal
• After Financial Aid Probation, the student must
be making SAP or successfully following an
academic plan
SAP (Continued)
• Institutions that evaluate SAP less often than
each payment period
– Student loses eligibility for Title IV aid
– Student may be placed on Financial Aid Probation
after an appeal
• After Financial Aid Probation, the student
must be making SAP or successfully following
an academic plan
Retaking Coursework
• Affects programs at term-based institutions
• Current: pay for unlimited retakes of failed
classes only
• Final rule: pay for one retake of any previously
passed course (except not if due to the student
failing previous courses)
Questions