AwardYear: 1995-1996 EnterChapterNo: 3 EnterChapterTitle: Institutional Eligibility and Administrative Requirements SectionNumber: 9 SectionTitle: Student Consumer Information PageNumbers: 155-165 The basic requirements for the consumer information that a school must provide students are found in the General Provisions regulations and stress the importance of providing students with reliable information regarding a school's academic programs, facilities, and financial aid programs. The Higher Education Amendments of 1992 added to the requirements in this area, necessitating the development of new regulations. Final regulations on campus security were published on April 29, 1994, and those requirements are discussed here. However, final regulations to implement the Student Right-to-Know Act have been delayed and ALL STUDENT RIGHT-TO-KNOW (SRK) REQUIREMENTS ARE SUSPENDED UNTIL FINAL REGULATIONS ARE PUBLISHED AND BECOME EFFECTIVE. THERE ARE NO SRK REQUIREMENTS FOR 1995-96 AT THIS TIME In recent years, the increased number of defaulted Federal student loans has led to renewed interest in providing students with information necessary to choose an appropriate academic program and to fully understand the responsibility of loan repayment. This section briefly addresses required loan counseling, but the loan counseling requirements are covered in detail in Chapter Ten of this Handbook. BASIC CONSUMER INFORMATION REQUIREMENTS [[Financial aid information]] Subpart D of the General Provisions lists basic information about the school and about financial aid that must be available to current and prospective students, usually through printed materials. If necessary, these materials must be prepared by the school. However, much of the required data will already be available in brochures and handouts routinely disseminated by the school, or in Federal publications such as The Student Guide. The following minimum information must be provided - what need-based and non-need-based Federal financial aid is available to students, - what need-based and non-need based State and local aid programs, school aid programs, and other private aid programs are available, - how students apply for aid and how eligibility is determined, - how the school distributes aid among students, - the rights and responsibilities of students receiving aid, - how and when financial aid will be disbursed, - the terms and conditions of any employment that is part of the financial aid package, - the terms of, schedules for, and the necessity of loan repayment and required loan exit counseling, - the criteria for measuring satisfactory academic progress, and how a student who has failed to maintain satisfactory progress may reestablish eligibility for Federal financial aid, - information on preventing drug and alcohol abuse, - information regarding the availability of SFA funds for study abroad programs, and - that a student may be eligible for SFA funds for attending a study abroad program that is approved for credit by the home school. [[General information about the school]] The school must provide the following minimum information about itself -- - the names of associations, agencies, and/ or governmental bodies that accredit, approve, or license the school and its programs, and the procedures by which a student may receive a copy for review of the school's accreditation, licensure, or approval, - special facilities and services available to disabled students, - the costs of attending the school (tuition and fees, books and supplies, room and board and applicable transportation costs, such as commuting) and any additional costs of the program in which the student is enrolled or has expressed an interest, - the school's fair and equitable refund policy and on the prescribed order of SFA refund distribution, - the degree programs, training, and other education offered, - the availability of a GED program, if the school admits students who do not have a high school diploma or equivalent, - the instructional, laboratory, and other physical plant facilities associated with the academic programs, - a list of the faculty and other instructional personnel, - the satisfactory progress standards that must be maintained, and - who to contact for information on student financial assistance and on general institutional issues. [[Availability of financial aid personnel]] The school must have someone available during normal operating hours to help persons obtain consumer information. One full-time employee or several persons may be assigned so that someone is always available (with reasonable notice) to assist current or prospective students and their families. Existing personnel may satisfy this requirement. A school may request a waiver of this requirement if it can demonstrate that a waiver is appropriate. (Contact the Institutional Participation Division.) JOB PLACEMENT RATES [[Information to substantiate job placement claims]] Schools that recruit students by using marketing claims regarding job placement must substantiate such claims. At or before the time of application, the school must provide to prospective students, the most recent available data concerning employment statistics, graduation statistics, and other information necessary to substantiate its claims. As discussed in Section Two of this Chapter, if the school advertises job placement rates to attract enrollment, it must inform prospective students of the State licensing requirements for the jobs for which the students seek training. CAMPUS SECURITY The Higher Education Amendments of 1992 also expanded the security-related requirements of the Student Right-to-Know and Campus Security Act, which required a school to compile an annual campus security report. Final regulations on campus security were published on April 29, 1994. Those requirements are discussed here. [[Campus security report]] By September 1 of each year, the annual campus security report must be distributed to all students and employees by appropriate publications, either directly or by mail (through direct mail, campus mail, or computer networks). The report should be reasonably available to all prospective student and employees, and those persons must be informed of the report's availability and be given a summary of its contents. [[Crime statistics]] The campus security report will provide information regarding campus security policies and campus crime statistics. At a minimum, the report must include following -- - the procedures for reporting crimes and other emergencies occurring on campus, and the policies for the school's response to such reports, - the policies concerning the security of and access to all campus facilities, including residences, - the policies concerning campus law enforcement, including the authority of campus security personnel and their working relationship to local police and other law enforcement agencies (policies must encourage prompt reporting of campus crimes), - the information programs available to students and employees on campus security, personal safety, and crime prevention, - statistics on the on-campus occurrence of murder, forcible and nonforcible sex offenses (e.g., rape), robbery, aggravated assault, burglary, and motor vehicle theft, as reported to the local police or campus officials (also, statistics concerning certain crimes that show evidence of prejudice based on race, religion, sexual orientation or, ethnicity), - the policies concerning the monitoring and recording (through local police agencies) of student criminal activity at off-campus location of student organizations recognized by the school, off campus housing facilities, - the drug and alcohol-abuse programs available to students and employees, as required under the Higher Education Act, - the policies concerning the possession, use, and sale of alcoholic beverages--including the enforcement of State underage drinking laws, and the policies concerning the possession, use, and sale of illegal drugs -- including the enforcement of State and Federal drug laws, - statistics concerning the number of arrests for violations of liquor laws, drug abuse, and weapons possession, and [[Sexual assault prevention program required]] - the sexual assault prevention programs available and the procedures that must be followed when a sex offense occurs (including who to contact, the importance of preserving evidence, options for the notification of local law enforcement officials, available counseling and other services for victims, procedures for disciplinary actions and possible sanctions, and a change in living or academic arrangements, if requested by the victim of a sex offense and if reasonably available). The requirements regarding the campus security report must be met individually for each separate campus. (Any branch, school, or administrative division that is not reasonably geographically contiguous with the main campus is considered a separate campus.) On-Campus -- includes (1) any building or property owned or controlled by the school within the same contiguous area and used by the school in direct support of or related to its educational purposes, or (2) any building or property owned or controlled by student organizations recognized by the school. The annual security report due September 1, 1995, and each subsequent annual report thereafter, must contain the required statistics for three calendar years preceding the year in which the report is disclosed. The law requiring these statistical reports was effective in 1992; therefore, it is reasonable to expect that schools had sufficient notice to make available and collect all relevant data from the 1992, 1993, and 1994 calendar years, and that all campus security reports due September 1, 1995, or later will be complete in this respect. Under the Higher Education Amendments of 1992, THE TERM "RAPE" WAS REPLACED BY "SEX OFFENSES, FORCIBLE AND NONFORCIBLE." Effective August 1, 1992, schools were to begin collecting statistics on the occurrence of offenses under this broader category, according to the definitions in the FBI's Uniform Crime Reporting System. Therefore, all reports should include statistics concerning rape for periods of time prior to August 1, 1992, and statistics concerning sex offenses, forcible and nonforcible, for periods of time on and after August 1, 1992. However, if a school has sex offense data available for any portion of the period from January 1, 1992 through August 1, 1992, the school must report this data for the 1992 calendar year. [[The graphic "September 1995 Campus Security Report Will Include" on page 3-160 is currently unavailable for viewing. Please reference your paper document for additional information.]] All schools must compile the required crime statistics in accordance with the definitions used in the Federal Bureau of Investigation's Uniform Crime Reporting Program, which is provided in Appendix E of the final regulation published April 29, 1994. In addition to the required annual campus security report, schools are required to inform the campus community of all on-campus crimes that are reported to campus security officials and are considered to represent a threat to students and/or employees. This information is to be provided in a timely and appropriate manner so as to prevent similar crimes from occurring and to protect the personal safety of students and employees. Schools should work closely with local law enforcement officials in determining the necessary and appropriate distribution of such information to the campus community. [[Final Rule 1-17-95]] Schools should note that the regulations implementing FERPA (which is discussed in greater detail in Section Eight of this Chapter) have been changed to specify that records of a school's disciplinary actions or proceedings are protected under the provisions of FERPA. That is, final regulations published on January 17, 1995 state that records of a school's disciplinary actions or proceedings against a student are not available to the public without the consent of the student or the student's parent (if applicable). [[The graphics "Disciplinary Action or Proceeding" and "Law Enforcement Unit" on page 3-161 are currently unavailable for viewing. Please reference your paper document for additional information.]] Under the law, a school is permitted to disclose only the RESULTS of disciplinary proceedings and only to the alleged VICTIM of a CRIME OF VIOLENCE (as defined in the United States Code), not to the public, without the consent of the student or parent (if applicable). However, the law does not provide the same protections to records of a school's law enforcement unit. That is, this law does not prevent a school from releasing records of its law enforcement unit to the public without the consent of the student or the student's parent (if applicable). LOAN COUNSELING [[General loan information, repayment options, and debt management planning]] Before a Federal Perkins, FFEL, or Federal Direct Loan borrower takes out a loan, the school must counsel that borrower, individually or in a group with other borrowers. Specifically, the school must give the borrower general information on the average anticipated monthly repayments on the loan, available repayment options, and advice on debt management planning, to facilitate repayment and deferment/cancellation provisions, if applicable, and other terms and conditions. This loan counseling must also be provided before the borrower completes his or her study, or otherwise leaves the school. (If the student withdraws without notice, the counseling information must be sent to the borrower's last known address.) Also at the time of exit, the student must provide the school with a correct name and address of his or her future employer, address of next of kin, and any correction to the school's record of the borrower's name, address, Social Security Number, and driver's license number, as well as the names and addresses of references. Within 60 days, the school must provide this information to the guaranty agency. [[Alternatives to borrowing --State aid]] Any loan counseling should also include information about alternatives to borrowing. Schools must inform all eligible FFEL borrowers of the availability of State grants in the State in which the school is located, and must refer out-of-State borrowers to the source of information for aid from their home State. (A list of State agencies is provided in Chapter Nine of this Handbook.) While this information can be made available to students through printed materials, it would be useful to mention these alternatives when counseling students applying for loans. [[Use of audio visual and written materials]] There is no prescribed format for adequate financial aid counseling. For example, the use of audiovisual materials can be very effective. In fact, the FFEL regulations now authorize schools to use videotape presentations to provide the initial counseling given to a borrower. However, the school must make sure that someone who is well-informed about the SFA programs is reasonably available shortly after the counseling presentation to answer borrowers' questions. (Correspondence schools must provide borrowers with written counseling materials by mail prior to disbursing the loan proceeds.) For a complete discussion of loan counseling requirements, please see Chapters Six and Ten of this Handbook. DRUG AND ALCOHOL ABUSE PREVENTION INFORMATION Schools that participate in the campus-based programs are required to provide information under the Drug-Free Workplace Act of 1988 (P.L. 101-690), including a notice to its employees of unlawful activities and the actions the school will take against an employee who violates these prohibitions. More recently, the Drug-Free Schools and Communities Act (P.L. 101-226) requires schools that participate in any SFA program to provide information to its students, faculty, and employees to prevent drug and alcohol abuse. Schools must provide the following in its materials -- [[Information to be included in drug prevention materials]] - Standards of conduct that clearly prohibit, at a minimum, the unlawful possession, use, or distribution of drugs and alcohol by students and employees on the school's property, or as a part of the school's activities, - A description of the applicable legal sanctions under local, State, and Federal law for unlawful possession, use, or distribution of illicit drugs and alcohol, - A description of any drug and alcohol counseling, treatment, or rehabilitation programs available to students and employees, - A description of the health risks associated with the use of illicit drugs and alcohol, and - A clear statement that the school will impose sanctions on students and employees (consistent with local, State, and Federal law) and a description of these sanctions, up to and including expulsion or termination of employment, and referral for prosecution of the standards of conduct. The appendices and Comments and Responses sections of the August 16, 1990 regulations provide additional guidance and information for schools to use in developing these materials. [[Distribution of materials to all students and employees]] The school may include this information in publications such as student or employee handbooks, provided that these publications are distributed to each student and employee. Merely making drug prevention materials available to those who wish to take them is not sufficient. The school must use a method that will reach every student and employee, such as the method used to distribute grade reports or paychecks. The school must distribute these materials annually. If new students enroll or new employees are hired after the initial distribution for the year, the school must make sure that they also receive the materials. For more information on anti-drug abuse requirements, see Section Two. MISREPRESENTATION [[Definition of misrepresentation]] The General Provisions permit the Department to fine a school, or limit, suspend, or terminate the participation of any school that substantially misrepresents the nature of its educational program, its financial charges, or the employability of its graduates. [[The graphic entitled "Misrepresentation", on page 3-164 is currently unavailable for viewing. Please reference your paper document for additional information.]] [[Accreditation facilities, etc.]] [[Misrepresentation of scholarships]] Misrepresentation of the educational program includes false or misleading statements about the school's accreditation, the school's size, location, facilities, or equipment. Misrepresentation of financial charges includes false or misleading statements about scholarships provided for the purpose of paying school charges. To be considered a scholarship, it must actually be used to reduce tuition charges made known to the student before the scholarship was offered to the student. (The tuition charges must be charges that are applied to all students NOT RECEIVING A SCHOLARSHIP.) It is also considered misrepresentation if the school gives false or misleading information as to whether a particular charge is a customary charge for that course at the school. [[Misrepresentation of employability of graduates]] Misrepresentation of the employability of the school's graduates includes any false or misleading statements -- - That the school is connected with any organization or is an employment agency or other agency providing authorized training leading directly to employment, - That the school maintains a placement service for graduates or will otherwise secure or assist graduates in securing a job, unless it provides the student with a clear and accurate description of the extent and nature of the service or assistance, or - Concerning government job market statistics in relation to the potential placement of its graduates. The regulatory provisions concerning misrepresentation are given in detail on the next page. [[Page 3-165 is currently unavailable for viewing. Please reference your paper document for additional information.]] |