Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

Institutional Eligibility and Administrative Requirements - Contents

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

Last Modified: 02/26/1998