2011 MSFAA Winter Training Conference

February 2, 2011

Federal Student Aid (FSA)Conference Review – Non-Loan Issues

Nov. 30 to Dec. 3, 2010 Orlando4 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 flemi1dl@cmich.edu

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 documentationDCL-GEN-10-05: Verifies prior DCLs continue to be in effect

• Applicable areas:Dependency overrideEFCCOAUnsubsidized loan eligibility

• New SAP regs limit use of PJ to determining:Acceptable mitigating circumstanceAcceptable 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

COACOA 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 EligibilityFAAs 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 futureParent refuses to file the FAFSA

•Unsub loan amount:Eligible for base amount for grade level & additional $2,000

Veterans and Active MilitaryFSA Session #34

Melissa Crips Deputy Director of Financial Aid Thomas M. Cooley Law School

cripsm@cooley.edu

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 2010Related to Veterans: Education, Veterans

Employment, Regulation changes, and VA programs for service members and their families

* Questions on DOE website for military contact Len ClarkEmail: Len.Clark@ed.govPhone: 202-401-3855

Schools Planning to Add a Program or Location

FSA Session #30

Cindy HermsenDirector, Financial Aid

Oakland Universityhermsen@oakland.edu

Eligibility Documents

• E-App• Program Participation Agreement (PPA)• Eligibility and Certification Approval Report

(ECAR)

Adding ProgramsSchool 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 ProgramsSchool 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 ProgramsSchool 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 ProgramsDepartment 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 LocationsReporting 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 LocationsApplying for Approval of a New

Location

• School must wait for Dept of Ed approval before disbursing funds if the school isProvisionally certifiedOn cash monitoring or reimbursementAcquiring assets of another institutionSubject to loss of eligibility due to default rateRequired by Dept of Ed to report and wait

Consumer Information Disclosures

David J. De Boer Executive Director of Financial Aid Davenport University ddeboer@davenport.edu

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

ResourcesThe 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 StudentFSA Sessions #25 and #26

Al HermsenSenior Director,

Student Financial AidWayne State Universityahermsen@wayne.edu

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