ERIC ED454752: Student Financial Aid Handbook, 2000-2001. Volume 2: Institutional Eligibility.

309 Pages·2001·5.1 MB·English

by  ERIC

DOCUMENT RESUME
HE 034 105
ED 454 752
Student Financial Aid Handbook, 2000-2001. Volume 2:
TITLE
Institutional Eligibility.
Department of Education, Washington, DC. Student Financial
INSTITUTION
Assistance.
2001-00-00
PUB DATE
311p.; For volume 1, see ED 446 541. For volumes 3-9, see HE
NOTE
034 106-112. For the 1999-2000 handbook, see ED 431 376.
AVAILABLE FROM
ED Pubs, P.O. Box 1398, Jessup, MD 20794-1398. Tel:
877-433-7827 (Toll Free).
Guides Non-Classroom (055)
PUB TYPE
MF01/PC13 Plus Postage.
EDRS PRICE
Compliance (Legal); Educational Finance; *Eligibility;
DESCRIPTORS
Federal Aid; *Federal Programs; Federal Regulation;
Government School Relationship; Grants; Higher Education;
Program Administration; *School Accounting; *Student
Financial Aid; Student Loan Programs
ABSTRACT
The "Student Financial Aid Handbook" explains the policies
and procedures required for institutions of higher education to administer
federally funded student financial assistance programs properly. This volume
focuses on institutional eligibility and explains how a school becomes
eligible to participate in the Student Financial Assistance (SFA) programs
and the administrative and fiscal requirements of participation. The chapters
"General Participation
"Institutional and Program Eligibility";
are:
(2)
(1)
"Administrative Capability";
"Financial
Requirements";
(4)
(3)
"Return of Title IV Funds";
"Cash Management";
Responsibility";
(5) (6) (7)
"Recordkeeping and Disclosure";
"Agreements
"Consumer Information";
(8) (9)
(10) "Applying for and Maintaining Participation in the SFA
between Schools";
(11) "Program Reviews and Audits"; and (12) "Distance Education."
Programs";
(SLD)
Reproductions supplied by EDRS are the best that can be made
from the original document.
6.1:4`41
STU DE
U S DEPARTMENT OF EDUCATION
Office of Educational Research and Improvement
EDUCATIONAL RESOURCES INFORMATION
CENTER (ERIC)
-this document has been reproduced as
received from the person or organization
originating it.
0 Minor changes have been made to
improve reproduction quality.
Points of view or opinions stated in this
document do not necessarily represent
official OERI position or policy.
inanea
an boo
tudon
Assistance
Volume 2 of 9
Volume 1: Student Eligibility
Volume 2: Institutional Eligibility.
Volume 3: Pell Grant Program
Volume 4: Campus-based Common Provisions
Volume 5: Perkins Loans
Volume 6: Federal Work Study
Volume 7: Supplemental Educational
Opportunity Grants
Volume 8: Direct Loan and FFEL Programs
Volume 9: State Grant Programs
Developed by: SFA Schools Channel
Web Version: ifap.ed.gov
Questions about the SFA Handbook:
[email protected] or 17800 -4ED-SFAP
Additional Copies: 1-800 4 FED AID
Mailing List: General
See the IFAP Web site for information about address
changes ("Ordering Publications").
3
Contents
Introduction
Major Changes by Chapter:
Chapter 1: Institutional and Program Eligibility
2-1
2-1
THE THREE DEFINITIONS OF ELIGIBLE INSTITUTIONS
2-1
INSTITUTIONAL CONTROL
2-2
ELIGIBLE INSTITUTION
2-3
LEGAL AUTHORIZATION BY A STATE
2-3
ACCREDITATION
2-4
Alternatives to Accreditation
2-4
Changes in Accreditation
2-4
Change in primary institution-wide accreditation
Accreditation by more than one institution-wide accrediting agency
2-4
2-5
Primary Accreditor
Dual Accreditation
2-5
2-5
ADMISSIONS STANDARDS
2-5
High School Diploma
2-6
Recognized Equivalent of a High School Diploma
2-6
Home Study
2-7
GED Preparatory Program Required
2-7
"TWO-YEAR" RULE
2-7
ADDITIONAL INSTITUTIONAL ELIGIBILITY FACTORS
2-7
Demonstrations of Compliance
2-8
The 90/10 rule (formerly the 85/15 rule)
2-12
Correspondence Course Limitation
2-12
Correspondence Student Limitation
2-13
Incarcerated Student Limitation
Ability-to-benefit Limitation
2-13
2-14
Bankruptcy
2-14
Crimes involving SFA Program Funds
2-14
PROGRAM ELIGIBILITY REQUIREMENTS
2-14
Determination of Program Eligibility
2-15
Types of Eligible Programs at an Institution of Higher Education
2-15
Types of Eligible Programs at a Proprietary or Postsecondary Vocational Institution
2-17
Exceptions to Eligible Program Definition
2-17
WEEKS OF INSTRUCTION AND THE 12-HOUR RULE
2-17
Week of Instruction
2-17
Minimum Weeks and Hours
2-18
Treatment of Holidays
2-18
ADDITIONAL ELIGIBLE PROGRAM REQUIREMENTS
2-18
ESL Programs
2-18
Study Abroad Programs
2-19
Flight Schools
2-19
CLOCK HOUR/CREDIT HOUR CONVERSIONS
2-20
FOREIGN SCHOOLS ELIGIBLE FOR FFEL PROGRAMS
2-20
Foreign Medical Schools
4
REPORTING INFORMATION ON FOREIGN SOURCES
2-22
Who Must Report?
2-22
Contents of Disclosure Report
2-23
Where to Report Foreign Gift Information
2-24
SOLOMON-POMBO AMENDMENT
2-24
Chapter 2: General Participation Requirements
2-25
THE PROGRAM PARTICIPATION AGREEMENT
2-25
Purpose and Scope of the PPA.
2-25
PPA Requirements
2-26
GED Preparatory Program Required
2-28
Civil Rights and Privacy Requirements
2-29
DEFINITION OF A PAYMENT PERIOD
2-29
Payment Period for Term-based Credit Hour Programs
2-29
Payment Period for Nonterm Credit Hour Programs and Clock Hour Programs
2-30
ACADEMIC YEAR REQUIREMENTS
2-34
Thirty-week Minimum of Instructional Time
2-34
Determining Academic Year Length
2-34
Reductions in Academic Year Length
2-35
CONTRACTS WITH THIRD-PARTY SERVICERS
2-36
Excluded Activities
2-37
Employees of a School
2-37
Requirements for Contracting with a Third-party Servicer
2-37
Institutional Liability
2-38
Notification of Contracts to the Department
2-38
ANTI-DRUG ABUSE REQUIREMENTS
2-38
Requirements for a Drug-free Workplace
2-39
Scope of the Act
2-39
Submission of Certification to the Department
2-39
Distribution to Students and Staff
2-39
Development and Review of a Drug Prevention Program
2-40
Consequences of Noncompliance
2-41
ANTI-LOBBYING CERTIFICATION AND DISCLOSURE
2-41
243
Chapter 3: Administrative Capability
2-43
REQUIRED ELECTRONIC PROCESSES
January 1,1999 Requirements
2-47
July 1,1999 Requirements
2-47
COORDINATION OF AID
2-47
CONSISTENCY OF STUDENT INFORMATION
2-48
OIG REFERRALS
2-48
COUNSELING
2-48
ADEQUATE STAFFING
2-49
SATISFACTORY PROGRESS AND FINANCIAL AID HISTORY
2-49
2-50
DEFAULT RATES
Default Management Plan
2-50
WITHDRAWAL RATES
2-51
DEBARMENT AND SUSPENSION CERTIFICATION
2-51
Debarment of School or its Principals
2-51
Checking Prospective Employees or Contractors
2-52
Lower-tier Covered Transactions
2-52
5
2-53
Chapter 4: Financial Responsibility
2-54
GENERAL STANDARDS
2-54
Proprietary or private nonprofit institution
2-58
Public schools
2-59
ALTERNATIVES TO THE GENERAL STANDARDS
2-59
LOC alternative for new school
2-59
LOC alternative for participating school
2-60
Zone alternative
Provisional certification for school not meeting standards
2-61
2-62
Provisional certification for school where persons or entities owe liabilities
2-62
PAST PERFORMANCE AND AFFILIATION STANDARDS
2-63
Past performance of a school
2-63
Past performance of persons affiliated with a school
2-64
FINANCIAL STATEMENTS
2-64
FOREIGN SCHOOLS
Chapter 5: Cash Management
2-65
2-65
PURPOSE OF CASH MANAGEMENT REQUIREMENTS
2-66
REQUESTING FUNDS
2-66
The Advance Payment Method
2-66
The Reimbursement Method
2-68
The Cash Monitoring Payment Method
2-68
The Just-In-Time payment method
2-70
GAPS
2-70
MAINTAINING AND ACCOUNTING FOR FUNDS
2-70
Bank Account Notification Requirements
Interest-bearing or Investment Account
2-71
2-72
Accounting and Financial Requirements
2-72
DISBURSING FUNDS
2-72
Definition of Disbursed
2-74
Disbursing SFA Funds Directly
2-75
DISBURSEMENT BY PAYMENT PERIOD
2-75
Excused Absences
2-76
EARLY DISBURSEMENTS
2-76
LATE DISBURSEMENTS
2-78
SFA CREDIT BALANCES
2-79
Holding Credit Balances
2-80
PRIOR-YEAR CHARGES
2-80
REQUIRED SCHOOL NOTIFICATIONS
2-80
Opportunity for Loan Cancellation
2-82
REQUIRED STUDENT AUTHORIZATIONS
2-84
EXCESS CASH
2-84
Allowable Excess Cash Tolerances
2-85
ADMINISTRATIVE COST ALLOWANCE
2-85
The Pell Grant Program
2-85
Campus-based Allowance
Chapter 6: Return of Title IV Funds
2-87
WITHDRAWALS*
2-87
Early Implementation
2-88
General Requirements
2-89
Consumer Information
2-89
Foreign Schools
2-89
Definition of a Title IV Recipient
2-90
Rounding
2-90
Date of the institution's determination that the Student
Withdrew
2-91
Use of Payment period or Period of Enrollment
2-92
Step 1: Student's Title IV Aid Information
2-93
Funds to Include in the Calculation
2-93
Title IV Aid Disbursed or that Could Have Been
Disbursed
2-94
Step 2: Percentage of Title IV Aid Earned
2-95
Withdrawal Date
2-96
Withdrawal date for a student who withdraws from
a school
that is required to take attendance.
2-96
Determining a student's withdrawal date at
a school
that is not required to take attendance.
2-97
Documentation
2-102
Leaves of Absence
2-102
Percentage of Payment Period or Period of Enrollment Completed.
2-107
Step 3: Amount of Title IV Aid Earned by the Student
2-110
Step 4:Total Title IV Aid to be Disbursed
or Returned
2-110
Post-withdrawal Disbursements
2-110
Example of the Post-withdrawal Disbursement
Requirements:
2-114
Step 5: Amount of Unearned Title IV Aid Due from the
School
2-115
Institutional Charges
2-115
Step 6: Return of Funds by the School
2-123
Step 7: Initial Amount of Unearned Title IV Aid Due from
the
Student
2-123
Step 8: Return of Funds by the Student
2-124
GRANT OVERPAYMENTS
2-124
Reporting and Referring Overpayments
2-127
Case Studies
2-131
Chapter 7: Consumer Information
2-177
BASIC CONSUMER INFORMATION REQUIREMENTS
2-178
Financial Aid Information
2-179
General Information about the School
2-179
CONSUMER INFORMATION FROM THE DEPARTMENT
2-181
STUDENT RIGHT TO KNOW AND CAMPUS SECURITY
ACT
2-181
Determining the Cohort for Completion
or Graduation and
Transfer-Out Rates
2-182
Waivers
2-184
Reporting Information on Completion
or Graduation Rates for the
General Student Body Cohort
2-184
EXAMPLE-Determination of Completion or Graduation and
410
Transfer-out Rates for the General Student Body
2-187
Reporting Information on Completion
or Graduation Rates for Student Athletes
2-188
7
2-191
EQUITY IN ATHLETICS
2-191
Disclosure of the Report
2-192
Contents of the Equity in Athletics/EADA Report
2-194
Definitions
2-194
LOAN COUNSELING
2-195
DRUG AND ALCOHOL ABUSE PREVENTION INFORMATION
2-195
Information to be Included in Drug Prevention Materials
2-195
Distribution of Materials to All Students and Employees
2-196
MISREPRESENTATION
2-196
Definition of Misrepresentation
2-196
Nature of Educational Program
2-197
Nature of Financial Charges
2-198
Employability of Graduates
2-198
CAMPUS SECURITY
2-198
General Information
2-199
Distribution of the Campus Crime Report
2-200
Definition of "Campus"
2-201
Timely Warning
2-202
Campus Security Authority
2-202
Professional and pastoral counselors excluded from reporting requirements
2-203
FERPA
2-204
Daily Crime Log
2-205
The Annual Security Report
2-205
Policies and Procedures for Reporting Crimes
2-210
Complaints Against Schools
2-215
Chapter 8: Recordkeeping and. Disclosure
2-215
REQUIRED RECORDS
2-216
Program Records
2-216
Fiscal Records
2-217
General Records
2-218
RECORD RETENTION PERIODS
2-220
RECORD MAINTENANCE
2-220
Acceptable Formats
2-220
Special Requirements for SARs and ISIRs
2-221
EXAMINATION OF RECORDS
2-221
Location
2-221
Cooperation with Agency Representatives
2-221
Timely Access
2-221
Reasonable Access to Personnel
2-222
SFA Recipient Information
2-222
DISCLOSING STUDENT INFORMATION
2-222
FERPA
2-224
Disclosure Requests for Information
2-224
Sample Disclosure Statement
2-225
Redisclosure to Other Authorized Parties
Chapter 9: Agreements Between Schools
2-227
CONSORTIUM AGREEMENT
2-227
Elements of a Consortium Agreement
2-227
Effective Date of the Agreement
2-228
CONTRACTUAL AGREEMENT
2-228
STUDY ABROAD OR DOMESTIC EXCHANGE PROGRAMS
2-229
Chapter 10: Applying for and Maintaining Participation
in the SFA Programs
2-231
APPLYING TO PARTICIPATE
2-231
Electronic application
2-232
Electronic Application Process
2-232
Site Visits
2-234
PRECERTIFICATION TRAINING REQUIREMENT
2-234
When to Complete an Application
2-235
PPA and ECAR
2-239
Effective Date for Participation
2-239
Provisional Certification
2-239
Revoking Provisional Certification
2-240
SUBSTANTIVE CHANGES AND HOW TO REPORT THEM
2-249
Changes That Require the Department's Written Approval
2-249
Changes Not Requiring the Department's Written Approval
2-250
Notification of School Closure or Bankruptcy
2-252
ADDING LOCATIONS OR PROGRAMS
2-252
When School May Make Program Eligibility Determination
2-253
Department Must Approve All Other Added Programs
2-253
Waivers
2-254
Changing from a non-main campus to a branch campus
2-254
Changes in Accreditation
2-255
QUALITY ASSURANCE PROGRAM
2-256
EXPERIMENTAL SITES INITIATIVE
2-257
Chapter 11: Program Integrity
2-261
STATE AND ACCREDITING AGENCY ROLES
2-261
State Role
2-261
Accrediting Agency Role
2-262
THE DEPARTMENT'S ROLE
2-263
Your Comments Are Important
2-264
Audit Requirements for Schools
2-264
Simultaneous Audit Submissions
2-264
Types of Audit Guidelines
2-267
Submission Dates for SFA Audits
2-268
Compliance Audit Submission Requirements
2-268
Financial Statements Audit Submission Requirements
2-269
Consolidated Statements
2-270
Audits for Foreign Schools
2-270
Audits for Third-Party Servicers
2-271
Having the Audit Performed
2-272
Submitting Audits
2-272
Access to Records
2-273
2-273
PROGRAM REVIEWS
2-274
Selection of Schools for Review
2-275
Written Report
2-275
GUARANTY AGENCY REVIEWS
APPEALING AUDIT AND PROGRAM REVIEW
2-276
DETERMINATIONS
2-276
REQUIREMENTS WHEN A SCHOOL CEASES TO BE AN ELIGIBLE INSTITUTION
2-277
Loss of Accreditation
2-277
Exceptions
2-278
REQUIREMENTS WHEN A SCHOOL'S SFA PARTICIPATION ENDS
2-278
VOLUNTARY WITHDRAWAL FROM SFA PARTICIPATION
2-278
INVOLUNTARY WITHDRAWAL FROM SFA PARTICIPATION
2-279
When Participation Ends
2-279
Additional Closeout Procedures
2-280
CASE MANAGEMENT
2-281
Possible Actions
2-282
CORRECTIVE ACTIONS AND SANCTIONS
2-282
Administrative Subpoena Authority
2-282
Sanctions
2-282
Actions Due to Program Violations or Misrepresentation
2-282
Emergency Action
2-283
Fine
2-283
Limitation
2-283
Suspension
2-283
Termination
2-284
Corrective Action
2-284
Possibility of Reinstatement
2-284
Criminal Penalties
2-287
Chapter 12: Distance Education
2-288
"DEAR COLLEAGUE" LETTER GEN-98-10
2-288
Definitions
2-289
Institutional Eligibility
2-290
Student Eligibility
2-290
Cost of Attendance
Federal Pell Grant Program and Federal Supplemental Educational
2-291
Opportunity Grant (FSEOG) Program Disbursements
2-291
Miscellaneous Questions and Answers
2-292
DISTANCE EDUCATION DEMONSTRATION PROGRAMS
2-292
Purpose of the Demonstration Program
2-293
Waivers of SFA Program Requirements
2-293
Eligible Applicants
2-293
Applying to Participate
2-294
Selection of Participants
2-294
Evaluation of the Demonstration Program
2-295
Oversight
2-295
Notification to the Public and Congress
0
.41.