The New & Improved SAP Rules

The New & Improved SAP Rules

Rick ShipmanDirector of Financial Aid

Michigan State University

October, 2011Grand Rapids, Michigan

• Regulations/Guidance– Higher Education Act (HEA)

• 484(a) and (c) Student Eligibility

– Code of Federal Regulations • §668.14 Program participation agreement• §668.16(e) Standards of administrative capability• §668.32(f) Student eligibility• §668.34 Satisfactory academic progress• §668.42(c) Financial assistance information

– 2009-2010 Federal Student Aid Handbook• Volume 1, pages 1-10 through 1-13• Volume 2, page 2-125• Volume 4, page 4-20

Satisfactory Academic Progress

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• What’s New?– Clarifies that SAP is an administrative capability

requirement– Consolidates most rules under §668.34– Lays out school policy components– Differentiates between every semester versus less

frequent monitoring– Standardizes terminology– Sets broad appeal standards


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• Required Components– Written Policy• Repeats• Incompletes• Withdrawals• Transfers

– Minimum GPA– Maximum Timeframe– Pace to Completion


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• One note about Graduate/Prof Students

– Federal SAP rules are specific to undergrads– Schools must establish and follow reasonable

graduate/professional SAP rules


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• Written Policy

– A school must establish own policy, but it must contain the federally mandated elements

– Must describe standards, monitoring processes, and steps to reestablish eligibility after failing the standards.


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• Written Policy

– Allowing appeals is optional– Must address impact of transfer credits– Must address impact of repeats, incompletes and

withdrawals– Must describe required documentation– Can have multiple policies based on specific

populations


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• Minimum GPA– GPA standard must be consistent with the

school’s graduation requirement• A single bright line standard

– 2.0 for an undergraduate, for example

• A graduated standard– 1.5 for a freshman, 1.8 for a sophomore, 2.0 thereafter, for

example

• Other

– If GPA is not used, another method is required


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• Maximum Timeframe– Regulations allow aid eligibility for 150% of the normal

time required for a degree• Example: An associate’s degree that requires 60 credits

is allowed 90 credits• This is equivalent to 8 semesters of minimal full time

enrollment– For graduate students, you should follow the published

institutional standards


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• Pace to completion– Specifies the rate at which a student must

complete courses to stay within the maximum time frame for the degree• Total hours completed / total hours attempted• A 67% pace for a 4 year degree permits 180 attempted

& 120 completed credits• The rate calculation should use cumulative hours


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• Monitoring SAP Standards– No less than annually– As often as every payment period– If you monitor every payment period, you are

allowed to grant a semester of aid ‘grace’ without student action

– If you monitor less than every payment period, students who fail standards become immediately ineligible for aid (no ‘grace’ period)


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• Consistent Language– Must use specific words in SAP policies• Financial Aid Warning• Financial Aid Denial• Financial Aid Appeal• Financial Aid Probation


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• Consistent Language– Financial Aid Warning • Student failed SAP standards in a semester he started

in good standing• He may continue to receive aid without taking action• Only for schools that monitor every term• Allowing this “Warning” semester is optional for an

eligible school


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• Consistent Language– Financial Aid Denial• School monitors every semester:

– Student failed SAP standards in a semester she started in Warning, Denial or Probation

• School monitors less than every semester:– Student failed SAP standards for the monitoring period

• No federal aid payments are permitted– That means no Parent PLUS

• Policy should state if other aid is stopped too• School may allow an Appeal


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• Consistent Language– Financial Aid Appeal

• A petition for waiver of Financial Aid Denial• Can be for 1 or more semesters• If granted for more than 1 semester, student adherence

must be monitored each semester

– Financial Aid Probation• Student in Financial Aid Denial who successfully appeals for

aid reinstatement• May be granted for one or more semesters


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• Appeal Components– Strong evidence that student can return to good

standing at end of semester of Probationor

– Academic plan that moves student to good standing in a defined time frame


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• Appeal Components– Student statement• What went wrong that caused the failure• What has changed to prevent a recurrence• Regulations specify death of a relative, a student injury

or illness as reasonable• Regulations also state “other special circumstances”


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• Academic Plan– Plan rules are not spelled out by regulation– Who prepares Plan is not spelled out either– Can require specific courses, grades, tutoring or other

interventions– School must monitor each payment period if Plan covers

more than 1 semester– Student must be given Appeal decision


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SAP Rules at MSU

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• MSU SAP Approach– Needed a high tech approach for quantity– Needed a high touch approach for quality


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MSU Unduplicated SAP Warnings & Denials by SemesterWARNINGS Withdrawals Time to Degree GPA 67% Completion TOTALS

Spring 2010 5 16 1207 198 1426

Summer 2010 4 12 96 218 330

Fall 2010 22 498 960 136 1616

Spring 2011 30 434 510 115 1089

Summer 2011 16 190 103 207 516

TOTALS 77 1150 2876 874 4977

DENIALS Withdrawals Time to Degree GPA 67% Completion TOTALS

Spring 2010 - 71 - - 71

Summer 2010 2 71 185 10 268

Fall 2010 4 22 249 12 287

Spring 2011 9 279 518 9 815

Summer 2011 1 93 100 13 207

TOTALS 16 536 1052 44 1648

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• MSU SAP Approach– Written Policy – web

• Minimum GPA – follow University standards• Maximum Timeframe – 150%• Pace – 67%• Maximum withdrawals – 3• Repeats count against 67% & 150% but we will only go back

1 semester for aid reinstatement• Incompletes are assumed as passed but rechecked at next

semester midterm– Monitor Every Semester– Allow Appeals


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• MSU SAP Approach– Include default aversion for Warnings• Requires academic and financial web counseling for aid

– Combine high tech with high touch– Process performed online• Student statement• Academic plan• Review comments and decision


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• Academic Plan– Created by academic advisor• Initiated by student• Authorized by dean’s office• Recorded in online student academic folder• Plans are identical for those with and without aid


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Documents

The New & Improved SAP Rules