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(GEN-96-09) Errata and replacement pages for the 1995-96 FSFA Handbook

DCLPublicationDate: 3/1/96
DCLID: GEN-96-9
AwardYear:
Summary: Errata and replacement pages for the 1995-96 FSFA Handbook



Student Financial
Assistance Programs

GEN-96-9

March 1996


SUMMARY: Errata and replacement pages for the 1995-96 FSFA Handbook.


Dear Colleague:

Enclosed are errata and replacement pages for the 1995-96 Federal
Student Financial Aid Handbook. Most of the required corrections
are listed in the errata sheet, but a few necessitated full replacement
pages. In those cases, we have provided both sides of the page so
that it may easily be inserted as a replacement in your copy of the
Handbook. Only the pages marked "CORRECTION" on the bottom
have changes.

We hope you find the Handbook useful, and we apologize for any
inconvenience these corrections may have caused.


Sincerely,



William J. Ryan, Director
Training and Program Information Division
Policy, Training and Analysis Service
Student Financial Assistance Programs



Enclosure



ERRATA
The Federal Student Financial
Aid Handbook, 1995-96

CHAPTER TWO

- Page 2-4 In the third paragraph, the first sentence should read:
"Individuals in categories 1, 2, and 4 may receive aid at eligible
schools in the United States under the SFA programs."

- Page 2-4 In footnote 2, the phrase "(that is, categories 1-4
above)" should read: "(that is, categories 1, 2, and 4 above)."

- Page 2-15 In the fourth paragraph, delete the phrase ", and must
conform to the standards of the school's accrediting agency if the
school is accredited by a nationally recognized accrediting agency
that has established satisfactory progress standards."

- Appendix C On the page titled "1995-96 SAR Comment Text
for Matches and Hold Files," in comment 030, the area code for the
Selective Service changed from 708 to 847, effective April 1995.
The new phone number is 847-688-6888.



CHAPTER THREE

- Page 3-96 Delete the phrase "up to one week before or" in the
first bullet.

- Page 3-96 The last paragraph should read: "Schools should note
that if a student withdraws before his or her first day of class, SFA
funds may not be used to pay any portion of a student's educational
costs.NO MATTER WHAT REFUND POLICY THE SCHOOL USES
FOR THAT STUDENT." The last sentence should be deleted.

- See attached replacement pages 3-127 and 3-132.


CHAPTER FOUR

- Page 4-23 After the examples, add:

Note that a school with a nonterm program may take into
consideration "excused absences." For example, if a school's
written policy allows a student up to 50 hours of excused
absences, the school may pay a student who had missed 20 of the
first 450 hours at the same time it would pay a student who did
not miss any hours. By "excused absences," we mean that the
student will not be required to make up the 20 hours of absences
to receive the degree or certificate for the program.

- Page 4-25 In the formula before the last paragraph, the fraction
should read:

Weeks of instructional time in the fall through spring terms
-----------------------------------------------------------------
Weeks of instructional time in program's definition of academic year

- Page 4-29 In Step 5 summary, under Formula 2, add after the
payment period calculation:

OR Annual award P number of terms in the award year (for
alternate calculation)

- Page 4-40 Under Step 5, add after the payment period calculation:

OR Annual award P number of terms in the award year (for
alternate calculation)

- Page 4-75 In the fourth paragraph, replace the first sentence with:

Note that you may still make an interim disbursement to a
student who is selected for verification (including a student
selected for verification by the school rather than the CPS).

- Page 4-75 In the next-to-last paragraph, delete the parenthetical
sentence that begins "(Note that....." Replace it with:

You must have the student's authorization in writing if you
ration cash disbursements by crediting to the student's account
the entire payment for the payment period and making
periodic cash disbursements to the student from these funds.

- Page 4-78 In the last paragraph, second sentence, after "clock
-hour" add: "or nonterm credit-hour."

- Page 4-80 The last paragraph should read:

The difference in the treatment of a student at a clock-hour OR
NONTERM CREDIT-HOUR school versus a TERM-BASED
credit-hour school is that at a term-based credit-hour school, a student
may be paid to repeat a course and does not necessarily have to
have completed the program before he or she can be paid for
that course. Generally, at a clock-hour or NONTERM
CREDIT-HOUR school, the student can be paid again for clock
or credit hours that he or she has already completed at that school only
if he or she has completed a program and reenrolls to take that
program again or another program.

- Page 4-96 In the second paragraph, replace "98" with "60" in the
second sentence.

- Page 4-102 In the last paragraph, delete "Fill in the weeks of
instructional time the student is expected to complete in all payment
periods occurring in the current award year." Insert:

For term-based, credit-hour programs (programs Formulas 2,
3, or 5B), enter the total number of weeks of instructional time
in all payment periods in the current award year in which the
student will be enrolled and paid. For programs using Formula
4, enter the number of weeks of instructional time required for
most full-time students to complete the hours in the program
or academic year, whichever is less. For programs using
Formula 5, enter the number of weeks of instructional time for
a student to complete the hours in the program or academic
year, whichever is less.

- Page 4-103 In the second paragraph, under "All Programs
(Payment Methodology)," replace the second sentence with:

Do not use the code "Other."

- Page 4-105 In the first paragraph, the last sentence should read:

Select "Y" for these students; leave the boxes for the state
abbreviation blank.

- Page 4-115 Replace the fifth paragraph with:

(5D) WEEKS ENROLLED IN THIS AWARD YEAR. Leave
this blank for programs using Formula 1. For programs using
Formulas 2, 3, or 5B, enter the total number of weeks of
instructional time in all payment periods in the current award
year in which the student will be enrolled and paid. For
programs using Formula 4, enter the number of weeks of
instructional time required for most full-time students to
complete the hours in the program or academic year,
whichever is less. For programs using Formula 5, enter the
number of weeks of instructional time for a student to
complete the hours in the program or academic year,
whichever is less.


CHAPTER SIX

- Page 6-107 In the second paragraph, delete the word "most"
in the first sentence, so that the sentence reads "Schools that
participate....."

- Page 6-107 In the third paragraph, delete the phrase "If a
school maintains federal funds in an investment account," so
that the sentence reads "The school must maintain sufficient
liquidity...."

- Page 6-107 Delete the fourth paragraph beginning with
the word "However," including all the bullets.

- Page 6-108 Delete the first paragraph on the page.


CHAPTER NINE

- Page 9-54 The state name for Oregon did not print
at the top of the left-hand column.

- Page 9-59 The state name for Guam did not print
at the top of the right-hand column.


CHAPTER TEN

- Page 10-13 The last bullet should read: "Have a
documented completion and placement rate of 70%
or above;"

- Page 10-98 The last sentence of the last paragraph
before the "Late Disbursement" section should read:

Any credit balance remaining in a student's account after the
student has dropped below half-time status, withdrawn, or left
school before completing the academic program must EITHER BE
GIVEN TO THE STUDENT OR RETURNED TO THE
STUDENT FINANCIAL ASSISTANCE (SFA) PROGRAMS
(SEE PAGE 3-92 OF THE HANDBOOK). SFA FUNDS CAN
BE PAID TO THE STUDENT ONLY FOR NINSTITUTIONAL
EDUCATIONAL COSTS INCURRED PRIOR TO
WITHDRAWAL; OTHERWISE, THESE FUNDS MUST BE
RETURNED TO THE SFA PROGRAMS. FFEL FUNDS
WOULD BE returned to the lender.


*[Charts from case studies 3-127, 3-128, 3-131, and 3-132
are currently unavailable on the BBS, but may be requested
by contacting the Student Financial Aid Information Center at
1-800-433-3243.]

Last Modified: 02/29/1996