| AwardYear: 1995-1996 EnterChapterNo: 3 EnterChapterTitle: Institutional Eligibility and Administrative Requirements SectionNumber: SectionTitle: Table of Contents PageNumbers: INTRODUCTION. . . . .1 Recent Changes. . . . .2 SECTION 1: INSTITUTIONAL AND PROGRAM ELIGIBILITY. . . . .5 The Three Definitions of Eligible Institutions. . . . .5 Chart: Eligible School Definitions. . . . .6 Control and Legal Authorization. . . . .7 Accreditation. . . . .8 Admission Standards. . .9 Other Eligibility Factors. . . . .11 "Two-Year" Rule. . . . .17 Foreign Schools Eligible for FFEL Programs. . . . .18 Reporting Information on Foreign Sources. . . . .19 Program Eligibility Requirements. . . . .22 The 12-Hour Rule. . . . .24 Academic Year Requirements. . . . .25 Clock Hour/Credit Hour Conversions. . . . .28 Interpreting Eligible Program Requirements. . . . .30 Additional Eligible Program Requirements. . . . . 32 SECTION 2: ADMINISTRATIVE AND FISCAL STANDARDS. . . . .33 The Program Participation Agreement. . . . .34 Financial Responsibility. . . . .36 Standards of Administrative Capability. . . . .41 Contracts with Third-Party Servicers. . . . .46 Administrative Cost Allowance. . . . .49 Special Requirements for Schools Awarding Athletically Related Financial Aid. . . . .50 Anti-Drug Abuse Requirements. . . . .51 Anti-Lobbying Certification and Disclosure. . . . .54 SECTION 3: CASH MANAGEMENT. . . . .55 Requesting Funds. . . . .56 Maintaining Funds. . . . .57 Disbursing Funds. . . . .59 Excess Cash. . . . .62 Sample UCC-1 Form. . . . .64 SECTION 4: FINANCIAL AID TRANSCRIPT. . . . .65 Requesting a Transcript. . . . .65 Payment and Certification Options. . . . .67 Sending a Transcript. . . . .68 Required Information Items. . . . .68 Model Transcript. . . . .70 SECTION 5: REFUNDS AND REPAYMENTS. . . . .73 Required Policies and Procedures. . . . .75 Fair and Equitable Refund Requirement. . . . .76 Dear Colleague Letter (DCL). . . . .78 Refunds Under $25. . . . .79 Comparing to Determine the Largest Refund. . . . .80 Withdrawal Date. . . . .82 Approved Leave of Absence. . . . .83 Period of Enrollment. . . . .84 Determining Institutional and Noninstitutional Charges. . . . .84 Unpaid Charges. . . . .86 Late Disbursements. . . . .88 Credit Balances. . . . .92 Pro Rata Refund Calculations. . . . .93 Federal Refund Policy Calculations. . . . .95 Repayment Calculations. . . . .98 Distributing Refunds and Repayments. . . . .99 Timeframe for Return of Funds. . . . .100 Case Studies. . . . .103 SECTION 6: AGREEMENTS BETWEEN SCHOOLS. . . . .133 Contractual Agreement. . . . .133 Consortium Agreement. . . . .135 Study Abroad or Domestic Exchange Programs. . . . .136 SECTION 7: PROGRAM REVIEWS AND AUDITS. . . . .137 Audits. . . . .137 Program Reviews. . . . .142 Unannounced Program Reviews. . . . .143 State Postsecondary Reviews. . . . .144 Guaranty Agency Reviews. . . . .144 Appealing Audit and Program Review Determinations. . . . . 144 Quality Assurance Program and Other Review Mechanisms. . . . .145 SECTION 8: RECORDKEEPING AND DISCLOSURE. . . . .147 Program and Fiscal Records. . . . .148 Student Records. . . . .148 Disclosing Student Information. . . . .150 SECTION 9: STUDENT CONSUMER INFORMATION. . . . .155 Basic Consumer Information Requirements. . . . .156 Job Placement Rates. . . . .158 Campus Security. . . . .158 Loan Counseling. . . . .161 Drug and Alcohol Abuse Prevention Information. . . . .163 Misrepresentation. . . . .164 SECTION 10: APPLYING FOR PARTICIPATION, STATUS CHANGES, AND CORRECTIVE ACTIONS. . . . .167 Applying for Participation. . . . .167 State Postsecondary Review Program. . . . .171 Change of Ownership or Control. . . . .174 Other Changes in Control. . . . .177 Adding Locations or Programs. . . . .178 Other Substantive Changes. . . . .180 Requirements When a School Loses Eligibility. . . . .181 Requirements When a School's SFA Participation Ends. . . . .181 Loss of Accreditation. . . . .183 Corrective Actions and Sanctions. . . . .183 |