| AwardYear: 1997-1998 EnterChapterNo: 3 EnterChapterTitle: Institutional Eligibility and Administrative Requirements SectionNumber: SectionTitle: Contents PageNumbers: INTRODUCTION . . . . . 1 Updates . . . . . 1 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 Admissions Standards . . . . . 9 "Two-Year" Rule . . . . . 10 Program Eligibility Requirements . . . . . 11 Weeks of Instruction and the 12-Hour Rule . . . . . 13 Additional Eligible Program Requirements . . . . . 14 Clock Hour/Credit Hour Conversions . . . . . 15 Other Eligibility Factors . . . . . 18 Foreign Schools Eligible for FFEL Programs . . . . . 23 Reporting Information on Foreign Sources . . . . . 24 SECTION 2: GENERAL PARTICIPATION REQUIREMENTS . . . . . 27 The Program Participation Agreement . . . . . 27 Financial Responsibility . . . . . 30 Standards of Administrative Capability . . . . . 36 Project EASI . . . . . 41 Definition of a Payment Period . . . . . 42 Academic Year Requirements . . . . . 48 Contracts with Third-Party Servicers . . . . . 50 Anti-Drug Abuse Requirements . . . . . 53 Anti-Lobbying Certification and Disclosure . . . . . 55 SECTION 3: CASH MANAGEMENT . . . . . 57 General Requirements . . . . . 57 Requesting Funds . . . . . 58 Maintaining and Accounting for Funds . . . . . 61 Disbursing Funds . . . . . 63 Disbursement by Payment Period . . . . . 67 Early and Late Disbursements . . . . . 68 Credit Balances and Prior-Year Charges . . . . . 70 Required School Notifications . . . . . 72 Required Student Authorizations . . . . . 74 Excess Cash . . . . . 75 Administrative Cost Allowance . . . . . 77 SECTION 4: REFUNDS AND REPAYMENTS . . . . . 79 Required Policies and Procedures . . . . . 81 Fair and Equitable Refund Requirement . . . . . 82 Comparing to Determine the Largest Refund . . . . . 84 Withdrawal Date . . . . . 86 Approved Leave of Absence . . . . . 88 Period of Enrollment for Which the Student Has Been Charged . . . . . 88 Determining Institutional and Noninstitutional Charges . . . . . 89 Unpaid Charges . . . . . 90 Late Disbursements . . . . . 92 Credit Balances . . . . . 94 Pro Rata Refund Calculations . . . . . 94 Federal Refund Policy Calculations . . . . . 97 Repayment Calculations . . . . . 99 Refunds of $25 or Less and Repayments under $100 . . . . . 100 Allocating Refunds and Repayments . . . . . 100 Time Frames for Return of Funds . . . . . 102 Case Studies . . . . . 105 SECTION 5: AGREEMENTS BETWEEN SCHOOLS . . . . . 135 Consortium Agreement . . . . . 136 Contractual Agreement . . . . . 137 Study Abroad or Domestic Exchange Programs . . . . . 138 SECTION 6: PROGRAM REVIEWS AND AUDITS . . . . . 139 Audit Requirements for Schools . . . . . 139 Types of Audit Guidelines . . . . . 141 Audit Submission Dates . . . . . 142 Compliance Audit Submission Requirements . . . . . 144 Financial Statement Submission Requirements . . . . . 144 Audits for Foreign Schools . . . . . 145 Audits for Third-Party Servicers . . . . . 146 Having the Audit Performed . . . . . 147 Program Reviews . . . . . 149 Guaranty Agency Reviews . . . . . 150 Appealing Audit and Program Review Determinations . . . . . 150 Quality Assurance Program . . . . . 151 Experimental Sites Initiative . . . . . 152 SECTION 7: RECORDKEEPING AND DISCLOSURE . . . . . 155 Required Records . . . . . 156 Record Retention Periods . . . . . 159 Record Maintenance . . . . . 161 Examination of Records . . . . . 162 Disclosing Student Information . . . . . 163 SECTION 8: STUDENT CONSUMER INFORMATION . . . . . 167 Basic Consumer Information Requirements . . . . . 168 Job Placement Rates . . . . . 170 Campus Security . . . . . 170 Student Right to Know . . . . . 176 Equity in Athletics . . . . . 187 PPA Requirements for Schools Awarding Athletically Related Financial Aid . . . . . 190 Loan Counseling . . . . . 191 Drug and Alcohol Abuse Prevention Information . . . . . 191 Misrepresentation . . . . . 192 Equity in Athletics--Optional Form . . . . . 195 SECTION 9: APPLYING FOR AND MAINTAINING PARTICIPATION IN THE SFA PROGRAMS . . . . . 203 Applying to Participate . . . . . 203 When to Submit a Fully Completed Application . . . . . 212 Substantive Changes and How to Report Them . . . . . 219 Requirements When a School Ceases to be an Eligible Institution . . . . . 224 Requirements When a School's SFA Participation Ends . . . . . 225 Case Management . . . . . 228 Corrective Actions and Sanctions . . . . . 229 |