| AwardYear: 1996-1997 EnterChapterNo: 3 EnterChapterTitle: Institutional Eligibility and Administrative Requirements SectionNumber: SectionTitle: Introduction PageNumbers: 1-4 The purpose of this chapter is to describe how a school becomes eligible to participate in the Student Financial Assistance (SFA) Programs, and to explain the administrative and fiscal requirements of SFA Program participation. In addition, this chapter discusses refund calculations, proper documentation and recordkeeping, disclosure requirements, and other issues relevant to the general administration of the SFA Programs. SECTION 1 explains the statutory definitions for eligible institutions and program eligibility requirements. Even if a school already participates in the SFA Programs, it is a good idea to review this section briefly to make sure that all programs at the school are eligible. SECTION 2 is an overview of the general administrative and fiscal requirements for SFA Program participation. SECTION 3 discusses cash management requirements. SECTIONS 4 AND 5 explain two particular administrative requirements in detail: the collection of a financial aid history for students who have previously attended another eligible school, and refund and repayment calculations for students who withdraw from the school. SECTION 6 discusses the use of agreements between schools to pay a student who is taking courses in an eligible program at more than one school. Audits, program reviews, the Quality Assurance Program, and the experimental sites initiative are discussed in SECTION 7. SECTION 8 discusses recordkeeping requirements. The student consumer information requirements are explained in SECTION 9. SECTION 10 explains how to apply for SFA participation, changes that can affect a schools participation and how to report these changes, responsibilities that a school must fulfill when leaving the SFA Programs, and sanctions and corrective actions taken by the Department. RECENT CHANGES REGULATIONS - Final regulations making technical corrections to the General Provisions and Institutional Eligibility regulations (and to other areas) were published in the Federal Register on June 30, 1995 and February 1, 1996. - Final regulations amending the General Provisions and Institutional Eligibility regulations (and other areas) to reduce burden were published on December 1, 1995. - Final regulations implementing the Equity in Athletics Disclosure Act were published on November 29, 1995. - Final regulations implementing the student right-to-know portion of the Student Right-to-Know and Campus Security Act were published on December 1, 1995. - Final regulations amending the debarment and suspension regulations were published on June 26, 1995. - Final regulations amending the default reduction and prevention measures found in the General Provisions were published on December 1, 1995. "DEAR COLLEAGUE" LETTERS - "Dear Colleague" letter GEN-95-38, published August 1995, advised schools of the court decision regarding the clock hour/credit hour conversion regulations and provided guidance for implementation. - "Dear Colleague" letter CB-95-7, published May 1995, included a copy of the January 17, 1995 final regulations implementing a provision of the Family Educational Rights and Privacy Act (FERPA), and included a customer survey concerning FERPA. - A "Dear Colleague" letter that provides guidance on the implementation of the NSLDS is scheduled for publication in the summer. Section 1: Institutional and Program Eligibility - Information is provided on the June 16, 1995 court decision on the clock hour/credit hour conversion regulation litigation. Guidance is provided on performing the required conversions. Section 2: Administrative and Fiscal Standards - Information is provided on the June 26, 1995 final regulations amending the debarment and suspension regulations. - Information on PPA requirements for awarding athletically-related student aid has been moved to Section 9 of this chapter. - Information on administrative cost allowances has been moved to Section 3 of this chapter. Section 3: Cash Management - Changes to the requirement that schools file a UCC-1 form are explained. - Clarification is provided on the requirements for the disbursement of SFA funds, including a new provision that permits a school to notify a student (or parent borrower) electronically that his or her account has been credited with SFA funds, and a new provision that allows a school to use SFA funds to pay minor prior year charges with a students authorization. - Information on administrative cost allowances has been moved here from Section 3 of this chapter. Section 4: Financial Aid Transcripts and the NSLDS - General information is provided on the use of the National Student Loan Data System (NSLDS) as an alternative to obtaining a paper financial aid transcript to obtain a students financial aid history. An upcoming "Dear Colleague" letter will provide further details. Section 5: Refunds and Repayments - Additional guidance is provided on the applicability of the refund and repayment requirements, requirements for providing information to students on refund policies, the difference between institutional charges and allowable charges, the treatment of a credit balance when a student withdraws, withdrawal dates and required time frames for the return of funds to a lender when a student withdraws. Section 6: Agreements Between Schools - Additional guidance is provided on the acceptance of credits and grades by the home school under a contractual or consortium agreement. Section 7: Program Reviews and Audits - Information that may be useful to all schools is provided on the "Comprehensive Management Assessment" portion of the Quality Assurance Program. - Information is provided on the experimental sites initiative. Section 8: Recordkeeping and Disclosure - An update has been made to reflect the change to recordkeeping retention requirements from five years to three years. Section 9: Student Consumer Information - Information is provided on the new student right-to-know requirements. - Information is provided on requirements of the Equity in Athletics Disclosure Act (EADA). Optional forms for reporting EADA data are included. - Information on PPA requirements for awarding athletically-related student aid has been moved here from Section 9 of this chapter. Section 10: Applying for Participation, Status Changes, and Corrective Actions - Information about the new Application to Participate in Federal Student Financial Aid Programs (AAP) is provided (including information on when to submit a fully completed or a partially completed AAP) . - The extensive guidance on the State Postsecondary Review Program has been removed, as the program is not currently funded. LITIGATION - As this goes to print, the treatment of unpaid charges in the calculation of state refunds is affected by litigation (see page 3-80). |