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Institutional Eligibility and Administrative Requirements - Student Consumer Information

AwardYear: 1997-1998
EnterChapterNo: 3
EnterChapterTitle: Institutional Eligibility and Administrative Requirements
SectionNumber: 8
SectionTitle: Student Consumer Information
PageNumbers: 167-202


This section provides information on the BASIC REQUIREMENTS
for the consumer information that a school must provide students.
These requirements stress the importance of providing students with
reliable information regarding a school's academic programs,
facilities, and financial aid programs.

In addition to the disclosure of information required under the basic
consumer information requirements, there are four disclosure
requirements with which schools must comply: CAMPUS
SECURITY, STUDENT-RIGHT-TO-KNOW (data for the general
student body and data related to the awarding of athletically related
student aid), EQUITY IN ATHLETICS, and PROGRAM
PARTICIPATION AGREEMENT (PPA) REQUIREMENTS FOR
SCHOOLS AWARDING ATHLETICALLY RELATED STUDENT
AID. Also, schools that participate in the campus-based programs
must comply with disclosure requirements for DRUG AND
ALCOHOL ABUSE PREVENTION. Although some of these
disclosure requirements contain common elements, they are all
required separately. (See the chart on the next page.) These
disclosure requirements are discussed here.

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 understand fully the responsibility of loan repayment. This
section briefly addresses required loan counseling, but the loan
counseling requirements are covered in detail in Chapters 6, 10, 11,
and in Direct Loan entrance and exit counseling guides.

This section also includes a summary of the effects of
misrepresentation of institutional information on a school's SFA
participation.

[[The chart "School Disclosure Requirements" on page 3-168 is
currently unavailable for viewing. Please reference
your paper document for additional information.]]

BASIC CONSUMER INFORMATION REQUIREMENTS

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:

[[Financial aid information]]
- 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 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

- whom 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. A
school should contact the Institutional Participation and Oversight
Service (IPOS) for more information (see Section 10 for the general
IPOS address).

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 prospective students with the
most recent available data concerning employment statistics,
graduation statistics, and other information necessary to substantiate
its claims. As discussed in Section 2, 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

[[NEW]]
The Department of Education is committed to assisting schools in
providing students with a safe environment in which to learn and to
keep parents and students well-informed about campus security. To
this end, "Dear President" letter ANN-96-5, issued jointly by the
Department of Education, the Justice Department, and the
Department of Health and Human Services in September 1996,
provides suggestions to schools for use in developing and
implementing a comprehensive policy to combat violence against
women on campus. The letter lists the following web sites as
possible resources:

- Department of Justice Violence Against Women Office
www.usdoj.gov/vawo

- Department of Education World Wide Web site on campus safety
www.ed.gov/offices/ope/ppi/security.html

- Higher Education Center for Alcohol and Other Prevention World
Wide Web site
www.edc.org/hec/

The Department continues to be committed to the enforcement of the
Campus Security Act of 1990, which requires a school to compile an
annual campus security report.

[[NEW]]
"Dear Colleague" letter GEN-96-11, published May 1996, provides
an overview of the campus security requirements, guidance to
schools on how to receive technical assistance in administering the
requirements, and the Department's enforcement policies.

[[Campus security report]]
By September 1 of each year, a school must publish and distribute
the annual campus security report to all current students and
employees directly by publications provided by hand delivery or by
mail (through the U.S. Postal Service, campus mail, or computer
network). The report should be provided upon request to all
prospective students and prospective employees (anyone who has
contacted the school for the purpose of requesting information on
employment with the school). Prospective students and prospective
employees must be informed of the report's availability, must be
given a summary of its contents, and must be given the opportunity
to request a copy. A school is not required to submit its annual
security report to the Department unless the Department specifically
requests the submission.

[[Requirements applicable to each campus]]
The requirements regarding the campus security report must be met
individually FOR EACH SEPARATE CAMPUS. (Any school,
additional location, or administrative division that is not reasonably
geographically contiguous with the main campus is considered a
separate campus.)

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, (2) any building or property owned or controlled by
student organizations recognized by the school, or (3) any building
or property controlled by the school, but owned by a third party.

[[Timely warning required]]
In addition to the required annual campus security report, schools are
required to provide timely warning to the campus community of any
occurrences of the following crimes that are reported to CAMPUS
SECURITY AUTHORITIES or local police agencies and that are
considered to represent a continuing threat to students and/or
employees:*1*

- murder,

- forcible and nonforcible sex offenses,

- robbery,

- aggravated assault,

- burglary,

- motor vehicle theft, and

- crimes of murder, forcible rape, and aggravated assault that
show evidence of prejudice based on race, religion, sexual
orientation, or ethnicity as prescribed by the Hate Crimes
Statistics Act (28 U.S.C. 534).

A CAMPUS SECURITY AUTHORITY is (1) a campus law
enforcement unit, (2) an individual or organization specified in a
school's campus security statement as the individual or
organization to whom students and employees should report
criminal offenses, (3) an official of a school who has significant
responsibility for student and campus activities, but does not have
significant counseling responsibilities.

[[CLARIFICATION]]
Note that campus officials with significant counseling responsibility
are not subject to the timely warning requirement. This permits the
official to provide confidential assistance to a crime victim without
the competing obligation to provide an immediate report of criminal
activity to the campus community. This exception does not apply to
statistical reporting of crimes that occur on campus. All officials with
significant responsibility for campus and student activities are
required to provide information for preparation of the annual
statistics.

The timely warning information is to be provided in an 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.

[[FERPA]]
The provisions of the Family Educational Rights and Privacy Act
(FERPA) do not prohibit a school from complying with the
requirements of the campus security regulations. Although
information on reported crimes could be included in records that are
protected under FERPA, FERPA does not prohibit the disclosure of
statistical, non-personally identifiable information. FERPA does not
preclude a school's compliance with the timely warning requirement
because FERPA recognizes that, in an emergency, information can
be released without consent when needed to protect the health and
safety of others. In making a timely warning report to the campus
community on criminal activity that affects the safety of others, even
if the school discloses the identity of an individual, the school has
not violated the requirements of FERPA.

Records created and maintained by a campus law enforcement unit
are not education records and are not protected from disclosure by
FERPA. 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). However, 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).

[[CLARIFICATION]]
Under the law, a school is permitted to disclose the results of
disciplinary proceedings to the alleged victim of a crime of violence
(as defined in the United States Code). However, disclosure may not
be made to the public without the consent of the student or parent (if
applicable).

Disciplinary action or proceeding
The investigation, adjudication, or imposition of sanctions by an
educational agency or institution with respect to an infraction or
violation of the internal rules of conduct applicable to students
of the agency or institution.
Law enforcement unit
Any individual, office, department, division, or other
component of an educational agency or institution, such as a
unit of commissioned police officers or noncommissioned
security guards, that is officially authorized or designated by
that agency or institution to
- enforce any local, state, or federal law, or refer to appropriate
authorities a matter for enforcement of any local, state, or
federal law against any individual or organization other than
the agency or institution itself, or
- maintain the physical security and safety of the agency or
institution.

A school is not relieved of compliance with the reporting
requirements of the campus security regulations when the school
refers a matter to a disciplinary committee, rather than to the school's
law enforcement unit or directly to the local authorities.

[[Campus security report]]
The campus security report provides information regarding campus
security policies and campus crime statistics. With limited
exceptions, the campus security requirements do not prescribe
policies and procedures for schools to follow. Rather, schools are
required to make disclosures concerning the policies and procedures
implemented by the school. At a minimum, the campus security
report must include the following:

[[Policies & procedures for reporting crimes]]
- a statement (including a list of the titles of each person or
organization to whom students and employees should report the
crimes) of the procedures and facilities for reporting crimes and
other emergencies occurring on campus, and the policies for the
school's response to such reports, including policies for making
timely reports of the following crimes that are reported to campus
officials or local police agencies to members of the campus
community:

- murder,

- forcible and nonforcible sex offenses,

- robbery,

- aggravated assault,

- burglary,

- motor vehicle theft, and

- crimes of murder, forcible rape, and aggravated assault that
show evidence of prejudice based on race, religion, sexual
orientation, or ethnicity as prescribed by the Hate Crimes
Statistics Act (28 U.S.C. 534),

[[Crime statistics]]
- statistics on the on-campus occurrence of the crimes listed above,

- a statement of the policies concerning the security of, and access
to, all campus facilities, including residences, and security
considerations used in the maintenance of campus facilities,

- a statement of the policies concerning campus law enforcement,
including

- the enforcement authority of campus security personnel, their
working relationship with state and local police and other law
enforcement agencies, and whether the security personnel have
the authority to arrest individuals, and

- policies that encourage accurate and prompt reporting of crimes
to campus police and the appropriate police agencies,

- a description of the type and frequency of programs for students
and employees on campus security procedures and practices;
programs that encourage students and employees to be responsible
for their own security and the security of others, and crime
prevention programs,

- a statement of the policies concerning the monitoring and
recording (through local police agencies) of student criminal
activity at off-campus locations of student organizations
recognized by the school, including student organizations with off-
campus housing facilities (see the definition of a "campus" on
page 3-171),

- statistics concerning the number of arrests for on-campus
violations of liquor laws, drug abuse, and weapons possession,

- the policies concerning the possession, use, and sale of alcoholic
beverages--including the enforcement of state underage drinking
laws, the policies concerning the possession, use, and sale of
illegal drugs, and the enforcement of state and federal drug laws,

- a description of the drug and alcohol-abuse education programs
available to students and employees, as required under section
1213 of the Higher Education Act,

- a statement of the sexual assault prevention programs available
and the procedures to be followed when a sex offense occurs
including

- a description of educational programs to promote the awareness
of rape, acquaintance rape, and other forcible and nonforcible
sex offenses,

- procedures a student should follow if a sex offense occurs
(whom to contact and how to contact them, the importance of
preserving evidence for proof of a criminal offense),

- options for the notification of local law enforcement officials
(including on-campus and local police) and a statement that
school personnel will assist the student in notifying these
authorities, if requested by the student,

- availability of on- and off-campus counseling, mental health, or
other student services for victims of sex offenses,

- notice to students that the school will change a victim's
academic and living situations after the alleged sex offense and
of the options for changes, if changes are requested by the
victim and are reasonably available,

- procedures for campus disciplinary actions in cases of an
alleged sex offense, including a clear statement that both the
accuser and the accused

- are entitled to the same opportunities to have others present
during a disciplinary proceeding, and

- will be informed of the school's final determination in any
school disciplinary proceeding with respect to the alleged sex
offense and any sanction that is imposed against the accused,

- sanctions the school may impose following a final
determination of a school disciplinary proceeding regarding
rape, acquaintance rape, or other forcible or nonforcible sex
offenses.

[[Reporting period]]
The annual security report due September 1, 1995, and each
subsequent annual report thereafter, must contain the required crime
statistics for the three calendar years preceding the year in which the
report is disclosed. The security report due September 1, 1997 must
include statistics for the 1994, 1995, and 1996 calendar years.
Statistics concerning the number of arrests for on-campus violations
of liquor laws, drug abuse, and weapons possession must cover the
most recently completed calendar year. The security report due
September 1, 1997 must include statistics for these arrests for
calendar year 1996.

All schools must compile the required crime statistics in accordance
with the definitions used in the Federal Bureau of Investigation's
Uniform Crime Reporting (UCR) System, which is provided in
Appendix E of the final regulation published April 29, 1994.
However, schools are not required to participate in the FBI's UCR
program.

[[Complaints against schools]]
[[CLARIFICATION]]
When a complaint is filed against a school alleging noncompliance
with the campus security regulations, the Department will assess the
complaint and determine the appropriate response. While schools are
learning their new responsibilities under these requirements, the
Department will provide technical assistance to correct violations. If
a school flagrantly or intentionally violates the campus security
regulations or fails to take corrective action, the Department will
impose appropriate sanctions including, possibly, the assessment of
fines, and for severe violations, the limitation, suspension, or
termination of the school from SFA participation.

[[NEW]]
Technical assistance to schools in administering the campus security
regulations is available from the Department's Customer Support
Branch at 1-800-433-7327.


*1* Note that a school must also include statistical and policy
information related to these same crimes in its campus security report
(see page 3-174).

Section 8: Student Consumer Information
pages 3-176 to 3-202


STUDENT RIGHT TO KNOW

The Student Right-to-Know Act requires schools to disclose
information about graduation rates to current and prospective
students and the public. A school participating in any SFA Program
must disclose completion or graduation rates (both referred to here as
completion rates), and transfer-out rates for the GENERAL
STUDENT BODY. The regulations also require schools that
participate in an SFA Program and offer ATHLETICALLY
RELATED STUDENT AID to provide information on completion
rates, transfer-out rates, and other consumer information to potential
student-athletes, their parents, high school coaches, and guidance
counselors.

For both general student body rates and rates related to athletically
related student aid, schools must disclose information on completion
rates and transfer-out rates on certificate- or degree-seeking, full-
time undergraduate students who enter the school on or after July 1,
1996.*2*

[[Determining the cohort]]
To calculate completion and transfer-out rates, a school must identify
a group of students each year (a cohort) that the school will monitor
over time so that it may determine the percentage of those students
who complete their programs or transfer out of the school. The same
"snapshot" approach is used to determine rates for both the general
student body and those rates related to athletically related student
aid. The regulations specify the cohort a school must use based on
how the school offers most of its programs.

[[Standard term schools]]
A school that offers most of its programs based on standard terms
(semesters, trimesters, quarters) must use a FALL COHORT of first-
time freshmen for these calculations. That is, the school must count
all first-time freshmen who are certificate- or degree-seeking, full-
time undergraduate students who enter the school during the fall
term. For a fall cohort, a student has "entered" the school if he or she
enrolled after July 1 and is still enrolled as of October 15, or as of the
end of the schools fall drop-add period in the same year.

[[Nonstandard term or non-term schools]]
[[NEW]]
A school that does not offer most of its programs based on standard
terms must use an AWARD YEAR COHORT of first-time freshmen
for the calculation of completion rates and transfer-out rates for the
general student body. That is, the school must count all first-time
freshmen who are certificate- or degree-seeking, full-time
undergraduate students who enter the school between July 1 and
June 30. For an award year cohort, a student has "entered" the school
if he or she has attended at least one class. Because an amendment to
the Higher Education Act changed the cohort for rates related to
athletically related student aid, nonstandard term and non-term
schools must use an August 31 to August 30 cohort for determining
these rates.*2*

Schools may not include students who transfer into the school from
another school as entering students for purposes of these
calculations; however, a school may calculate a completion rate for
students who transfer into the school as a separate, supplemental rate.

[[Definitions]]
The definitions of CERTIFICATE- OR DEGREE-SEEKING
STUDENTS, FIRST-TIME FRESHMAN STUDENTS, and
UNDERGRADUATE STUDENTS were adopted (with slight
modifications to address the Student Right-to Know statute) from the
National Center for Education Statistics (NCES) Integrated
Postsecondary Education Data System (IPEDS) Graduation Rate
Survey (GRS).

CERTIFICATE- OR DEGREE-SEEKING STUDENT--a student
enrolled in a course of credit who is recognized by the school as
seeking a degree or certificate.

FIRST-TIME FRESHMAN STUDENT--an entering freshman
who has never attended any institution of higher education.
Includes a student enrolled in the fall term who attended a
postsecondary institution for the first time in the prior summer
term, and a student who entered with advanced standing (college
credit earned before graduation from high school).

UNDERGRADUATE STUDENTS --students enrolled in a 4-
or 5-year bachelor's degree program, an associates degree
program, or a vocational or technical program below the
baccalaureate level.

Schools must use the SFA definition of a FULL-TIME STUDENT
that is found in the Student Assistance General Provisions
regulations (see Chapter 2).

[[Waivers]]
[[CLARIFICATION]]
The regulations provide for a waiver of completion rate and transfer-
out rate calculations for the general student body and for athletic data
to any school that is a member of an athletic association or
conference that has voluntarily published (or will publish)
completion or graduation data that the Department determines is
substantially comparable to the data required by the regulations.
However, unless otherwise specified, a waiver does not apply to the
required disclosure of additional data related to athletically related
student aid. In addition, schools are still required to comply with
information dissemination requirements.

[[NEWS]]
The NCAA received a waiver for its Division I schools for the July
1, 1997 athletically related student aid reporting submission. NCAA
Division I schools will be covered by the data the NCAA submits to
the Department. This waiver also applies to the required disclosure
of additional data related to athletically related student aid for
Division I and Division II schools. Division I and Division II schools
are still required to provide the information to prospective student-
athletes and their parents, but the obligation of NCAA Division I
schools to provide the information individually to coaches and
counselors will be covered by the graduate rate book mailed to each
high school by the NCAA.

[[NEW]]
In addition to waivers, the Department will consider the protocols of
other agencies as acceptable methodologies if those protocols meet
the requirements of the regulations. Currently, the Department has
approved the technical manual of the Joint Commission on
Accountability Reporting (JCAR), an arm of the Association of State
Colleges and Universities, as containing a protocol that will generate
information in compliance with the regulations. JCAR schools are
still obligated to fulfill all regulatory requirements, including the
requirement to calculate and provide graduation rate and transfer-out
rate data on student-athletes. A school will still have to fulfill the
dissemination requirements for the both general student body rates
and rates related to athletically related student aid.

The Department will continue to work with any interested agencies
to help them develop standards that meet these requirements. If in the
future the Department determines that another agency's requirements
meet the standards of the Student Right-to-Know Act, the
Department will inform schools that those rates may be used to
satisfy the Student Right-to-Know requirements.

In the future, the National Center for Education Statistics will be
putting out a graduation rate survey (GRS). Information generated
for NCES for the GRS may be used to fulfill the data requirements
discussed here. The Department will notify schools and provide
further information when this option is available.

Disclosure for the General Student Body

[[General student body]]
The requirements for disclosing information on the general student
body have been broken down into three steps: determining the
cohort, calculating the rates, and disclosing the rates.

Step 1 - Determining the cohort

Schools must determine the cohort as described on page 3-177 to
identify students in such a way that it can take a snapshot of those
same students at a later time.

Step 2 - Calculating the rates

Once a school has identified a cohort, it must determine how many
of those students completed their program and how many transferred
out of their program at the point in time that 150 percent of the
normal time for completion of each program has elapsed for all of
the students in the cohort.

[[Definiton of "normal time"
NORMAL TIME is the amount of time necessary for a student to
complete all requirements for a degree or certificate according to the
school's catalog. This is typically

- four years (eight semesters or trimesters, or 12 quarters, excluding
summer terms) for a bachelor's degree in a standard term-based
school,

- two years (four semesters or trimesters, or six quarters, excluding
summer terms) for an associate degree in a standard term-based
school, and

- the various scheduled times for certificate programs.

The following formula is used to calculate a completion rate for the
general student body:

[[Completion rate]]
Number of students in cohort who completed their program
within 150% of normal time for completion
--------------------------------------------------------------
Number of students in cohort (minus permitted exclusions)

[[Definition of a completor]]
A student is counted as a COMPLETOR if

- the student completed his or her program within 150 percent of
the normal time for completion from their program, or

- the student has completed a transfer preparatory program within
150 percent of the normal time for completion from that program.

TRANSFER PREPARATORY PROGRAM--At least a two year
program that is acceptable for full credit toward a bachelor's
degree and qualifies a student for admission into the third year of a
bachelor's degree program.

[[Excluded from cohort]]
A school may exclude from the cohort students who

- have left school to serve in the armed forces,

- have left school to serve on official church missions,

- have left school to serve with a foreign aid service of the federal
government, such as the Peace Corps, or

- are deceased, or have become totally and permanently disabled.

The following formula is used to calculate a transfer-out rate for the
general student body:

[[Transfer-out rate]]
Number of students in cohort who transferred out of their
program within 150% of normal time for completion
--------------------------------------------------------------
Number of students in cohort (minus permitted exclusions)

[[Definition of a transfer-out student]]
A student is counted as a TRANSFER-OUT STUDENT if, within
150 percent of the normal time for completion of their program, the
student has transferred out of the program and enrolled in any
program of another eligible institution for which the prior program
provides substantial preparation. A school is required to report only
on those students that the school knows have transferred to another
school.

[[Documentation of a transfer]]
In addition, to be counted as a transfer-out student, a school must
document that the student actually transferred. Acceptable
documentation is

- a certification letter or electronic certification from the school to
which the student transferred stating that the student is enrolled in
that school,

- confirmation of enrollment data from a legally authorized
statewide or regional tracking system (or shared information from
those systems) confirming that the student has enrolled in another
school,

- institutional data exchange information confirming that a student
has enrolled in another school, or

- an equivalent level of documentation.

[[Excluded from cohort]]
As in the calculation of its completion rate, a school may exclude
from the cohort students who

- have left school to serve in the armed forces,

- have left school to serve on official church missions,

- have left school to serve with a foreign aid service of the federal
government, such as the Peace Corps, or

- are deceased, or have become totally and permanently disabled.

Step 3 - Disclosing the rates

This information must be disclosed by the January 1 immediately
following the expiration of 150% of normal time for the group of
students on which the school bases its completion rate calculation.
However, for some programs measured in months, 150% of normal
time may expire after June 30 but prior to January 1. If this occurs,
the disclosure date is the SECOND January 1 after that date. For
example, if 150% of normal time expires on July 1, 1997, disclosure
is required by January 1, 1999. Note that for all traditional term-
based schools, the last term comprising 150% of normal time is
always considered to end no later than June 30.

Schools must disseminate the information on completion and
transfer-out rates to all enrolled students, and to prospective students
upon request, through appropriate publications and mailings (for
example, school catalogs or admissions literature). Schools are
strongly encouraged to provide this information to other interested
parties, such as guidance counselors, upon request.

EXAMPLE-Determination of Completion and Transfer-out Rates
for the General Student Body

Step 1 - Determining the Cohort

Tower of London College (TLC) has both two-year and four-year
degree programs. It operates on a semester basis, so it used a fall
cohort.

From July 1996 to October 15, 1996, TLC had enrolled 1,000 full-
time first year freshmen in degree programs. It tagged those
students as its 1996 cohort.

Step 2 - Calculating the rates

One hundred and fifty percent of normal time for completion of
the two-year program elapsed on June 30, 1999. In July of 2002
(after the 150% of normal time for completion of the four-year
program elapsed), TLC searched its records to see how many of
the 1000 students in the cohort had completed a two-year degree
as of June 30, 1999. It found that 250 students had completed such
a degree. It noted both the number and identity of those students.
TLC noted the identity of the students so that it would be able to
determine if any of the 250 students also obtained a four-year
degree and must be treated as duplicates (see below).

It also found that 35 students received two-year degrees between
July 1, 1999 and June 30, 2002. TLC was unable to count these
students as completors for Student Right-to-Know purposes, as
they had completed the program after the elapse of 150% of
normal time for completion; however, TLC chose to use this data
as supplemental information.

At this point, TLC also determined the number of transfer-out
students in the two-year program by ascertaining the number of
students for which it had documents showing that the student had
transferred to, and begun classes at, another school. It found that it
had documentation on 50 such students.

One hundred and fifty percent of normal time for completion of
the four-year program elapsed on June 30, 2002. In July of 2002,
TLC determined how many of the 1000 students had received a
four-year degree as of June 30, 2002. It found that 450 students
had done so.

Because TLC had identified the completors of the two-year
program, it was able to determine that 10 of the students it had
counted as 2-year completors had also received four-year degrees.
TLC is not permitted to count these students as completors twice,
so it deducted the number from the number of two-year degree
program completors (it could also have deducted them from the
number of four-year completors had it so chosen).

TLC surveyed its records to determine the number of students in
the four-year program that it could document as having transferred
as of June 30, 2002. It found 65 students had done so.

To determine if any of the students could be excluded from the
cohort, TLC searched its records for documentation that showed
that a total of 15 students in the original cohort had left the
institution for the express purpose of joining a church mission, the
armed forces, or a foreign aid program sponsored by the federal
government, or had died or become totally and permanently
disabled.

TLC calculated its completion rate and transfer-out rate as follows:

450 four-year program completors + (250 two-year program
completors - 10 duplicates)
------------------------------------------------------------
1,000 students in cohort - 15 permitted exclusions

Completion rate = 70%

65 four-year program transfers + 50 two-year transfers
-----------------------------------------------------
1,000 students in cohort - 15 permitted exclusions

Transfer-out rate = 11.6%

Step 3 - Disclosing the rates

On January 1, 2003, (the January 1 following the expiration of
150 % of normal time for the entire cohort), TLC published its
completion rate and its transfer-out rate for the students who
entered in the fall of 1996.

TLC decided to provide separate, supplemental information
regarding the completion and retention rates of its part-time
students because it has a large part-time student population. It also
provided separate, supplemental information on the number of
students who completed the two-year program after four years and
after five years. It could have also provided separate, supplemental
information on students who transferred into the school from
another school had it so wished.

Athletically Related Student Aid Disclosure Requirements

[[Athletically related student aid]]
Schools that participate in an SFA Program and offer athletically
related student aid must provide information on completion rates,
transfer-out rates, and other statistics for students who receive
athletically related student aid to potential student athletes, and to
their parents,*3* high school coaches, and guidance counselors.

ATHLETICALLY RELATED STUDENT AID--any scholarship,
grant, or other form of financial assistance offered by the school,
the terms of which require the recipient to participate in a program
of intercollegiate athletics at the school in order to be eligible to
receive such assistance.

This definition of "athletically related student aid" is the same
definition that is used for the EADA disclosure requirements, and the
PPA requirements for schools that award athletically related student
aid (see pages 3-187 and 3-190). The definitions of "certificate- or
degree-seeking students," "first-time freshman students,"
"undergraduate students," and "normal time" are the same as those
used for the calculation of completion and transfer-out rates for a
school's general student body (discussed above).

Step 1 - Determining the cohort

A school must determine the cohort as described on page 3-177.

Step 2 - Calculating the rates

Schools that provide athletically related student aid must report three
completion rates and three transfer-out rates:

- a completion rate and transfer-out rate for the general student
body (see page 3-179),

- a completion rate and transfer-out rate for the members of the
cohort who received athletically related student aid (this rate is
calculated in the same manner as the rates for the general student
body, but must be broken down by race and gender within each
sport), and

- the average completion rate and average transfer-out rate for the
four most recent completing classes of the cohort categorized by
race and gender for the general student population, and for race
and gender within each sport. (Until the year 2000, a school may
not have four years of data. In this case, the school must report an
average completion rate for all the years for which it has data.)

Information that is required to be reported by sport must be broken
down into the following categories:

- Basketball,

- Football,

- Baseball,

- Cross-country and track combined, and

- All other sports combined.

[[Required disclosure of additional data]]
In addition to the completion rates and transfer-out rates, schools
must report

- the number of students, categorized by race and gender, who
attended the school during the year prior to the submission of the
report, and

- the number of those attendees who received athletically related
student aid, categorized by race and gender.

As in the calculation of completion rates and transfer-out rates for
the general student body, a school may exclude from the cohort
students who

- have left school to serve in the Armed Forces,

- have left school to serve on official church missions,

- have left school to serve with a foreign aid service of the federal
government, such as the Peace Corps, or

- are deceased, or totally and permanently disabled.

Step 3 - Disclosing the rates

The report must be completed by July 1, beginning July 1, 1997. The
report must be submitted to the Department every July 1 (beginning
July 1, 1997) and must be provided to each prospective student
athlete and his or her parents, coaches, and counselors when an offer
of athletically related student aid is made to the prospective student.
Data must be disclosed beginning on the July 1 immediately
following the expiration of 150 % of normal time for the cohort
entering on or after July 1, 1996. Therefore, schools will not be
required to disclose this information for approximately one year after
the expiration of the 150% period.

For the first year, schools are not required to provide completion rate
information for students who enter before July 1, 1996. Therefore,
completion rate data must be disclosed beginning on the July 1
immediately following the expiration of 150% of normal time for the
cohort entering on or after July 1, 1996. However, if a school has
data on students entering prior to July 1, 1996 (as the result of
NCAA requirements, for example), the school should report these
data in the four year averages.

[[CLARIFICATION]]
Schools that are not yet reporting completion rate or transfer-out
rates because they do not have the necessary data must still disclose
the additional data regarding the number of students who attended
the previous year, categorized by race and gender, and the number
who attended the previous year and who received athletically related
student aid, categorized by race and gender within each sport.

[[De minimus exception]]
There is a de minimus exception to the disclosure requirements for
the completion or graduation rates of student athletes that allows
schools not to disclose those rates for categories that include five or
fewer students.

Schools may also provide to the Department and to students
supplemental information containing the completion rate of students
who transferred into the school and the number of students who
transferred out of the school.

Supplemental Information

[[Placing rates in context]]
Schools are strongly encouraged to provide additional information to
place their completion or transfer-out rates for both the general
student body and those related to athletically related student aid in
context. For example, a small school's completion rate may vary
greatly from year to year because the school's calculations use a very
small cohort. The school may wish to provide prior years' data and
an explanation of factors affecting their completion rate.

Also, if a school's completion rate is lowered because a large
percentage of students serve on church missions, the school may
wish to provide supplemental information with the required
calculation to provide the completion rate of those students when an
extended time frame is applied.

Although schools must calculate and disclose the transfer-out rate
separately from their completion rate, a school may wish to provide
additional information that combines the completion rate with its
transfer-out rate if the school believes this provides a more accurate
picture of the school.

EQUITY IN ATHLETICS

Regulations published November 29, 1995 implemented the
provision of the Improving America's Schools Act of 1994 titled the
"Equity in Athletics Disclosure Act" (EADA). The EADA is
designed to make prospective students aware of the commitments of
a school to providing equitable athletic opportunities for its male and
female students. Certain coeducational schools are required to
prepare an annual report on participation rates, financial support, and
other information on men's and women's intercollegiate athletic
programs.

THE EADA REQUIRES SCHOOLS TO MAKE THIS REPORT
AVAILABLE UPON REQUEST TO STUDENTS, POTENTIAL
STUDENTS, AND THE PUBLIC.

[[Who must prepare a report]]
Any coeducational institution of higher education that participates in
an SFA Program and has an intercollegiate athletic program must
prepare an EADA report.

[[How is the report prepared]]
A school must first designate its reporting year. A reporting year may
be any consecutive 12-month period of time. For its designated
reporting year, a school must report

- the number of male and female full-time undergraduate students
that attended the school (undergraduate students are those who are
consistently designated as such by the school),

- the total amount of money spent on athletically related student aid
(including the value of waivers of educational expenses) for 1)
men's teams and 2) women's teams,

- the ratio of athletically related student aid awarded to male
athletes to athletically related student aid awarded to female
athletes (see the definition of athletically related student aid on
page 3-184),

- the total amount of RECRUITING EXPENSES for 1) all men's
teams and 2) all women's teams,

- the total annual revenues for 1) all men's teams and 2) all women's
teams (a school may also report these revenues by individual
teams),

- the average annual INSTITUTIONAL SALARY of the head
coaches for all offered sports of 1) men's teams and 2) women's
teams,*4*

- the average annual INSTITUTIONAL SALARY of the assistant
coaches for all offered sports of 1) men's teams and 2) women's
teams, and

- a listing of the VARSITY TEAMS that competed in
intercollegiate athletic competition and for each team, the
following data:

- total number of PARTICIPANTS as of the day of the first
scheduled contest of the reporting year for the team,

- total operating expenses (expenditures on lodging and meals,
transportation, officials, uniforms, and equipment) attributable
to the team,*5*

- gender of the head coach (including any graduate assistant or
volunteer who served as head coach) and whether he or she was
assigned on a full-time or part-time basis,

- number of male assistant coaches (including any graduate
assistants or volunteers who served as assistant coaches) and
whether each was assigned on a full-time or part-time basis, and

- number of female assistant coaches (including any graduate
assistants or volunteers who served as assistant coaches) and
whether each was assigned on a full-time or part-time basis.

[[Definitions]]
RECRUITING EXPENSES are all expenses schools incur for
recruiting activities including, but not limited to, expenditures for
transportation, lodging, and meals for both recruits and institutional
personnel engaged in recruiting, all expenditures for on-site visits,
and all other expenses related to recruiting.

INSTITUTIONAL SALARY is all wages and bonuses a school pays
a coach as compensation attributable to coaching.

In addition to teams that are designated as "varsity" by the school or
an athletic association, VARSITY TEAMS include any team that
primarily competes against other teams that are designated as varsity.

PARTICIPANTS on varsity teams include not only those athletes
who take part in a scheduled contest, but also any student who
practices with the team and receives coaching as of the day of the
first scheduled intercollegiate contest of the designated reporting
year. This includes junior varsity team and freshmen team players if
they are part of the overall varsity program. Schools should also
include all students who receive athletically related student aid,
including redshirts, injured student athletes, and fifth-year team
members who have already received bachelor's degrees.

[[Availability of report]]
A school must make the report available to students, prospective
students, and the public in easily accessible places. For example, a
school may make copies of the report available in intercollegiate
athletic offices, admissions offices, libraries, or by providing a copy
to every student in his or her electronic mailbox. IN ADDITION, A
SCHOOL MUST PROVIDE THE REPORT PROMPTLY TO
ANYONE WHO REQUESTS THE INFORMATION. For example,
a school may not refuse to provide a copy of the report to the news
media, and the school may not require an individual requesting the
information to come to the school to view the report.

A school must inform all students and prospective students of their
right to request the information. For example, the school may publish
a notice at least once a year in a school publication, the school
catalog, registration materials, or relevant intercollegiate athletic
department publication distributed to all students.

A school may not charge a fee to students, potential students, parents
or coaches who ask for the information; however, schools are not
prohibited from charging the general public a fee to cover copying
expenses only.

[[Reporting deadlines]]
Schools were required to compile and make available their first
reports by October 1, 1996. Each subsequent report must be
compiled and made available by October 15 each year thereafter. A
school does not have to submit this report to the Department unless
specifically requested by the Department. The Department may
request that a school provide a copy of the report (for example, as
part of a program review or compliance audit) in order to verify its
compliance with these requirements.

[[Optional form]]
The Department has developed an optional form for reporting the
EADA data (see page 3-195). Schools are not required to use this
form. Different reporting formats are acceptable, as long as they
provide all the required information.

PPA REQUIREMENTS FOR SCHOOLS AWARDING
ATHLETICALLY RELATED FINANCIAL AID

The Higher Education Amendments of 1992 added language to the
Program Participation Agreement (PPA) concerning additional
administrative requirements for institutions offering athletically
related student aid (see the definition of athletically related student
aid on page 3-184).

Participating schools must compile an annual report, within six
months of the end of each fiscal year, that provides the following
figures:

- total school revenues earned from intercollegiate athletics;

- revenues earned from each of the following sports: football, men's
basketball, women's basketball, other men's sports combined, and
other women's sports combined;

- total expenses of intercollegiate athletics;

- expenses for each of the following sports: football, men's
basketball, women's basketball, other men's sports combined, and
other women's sports combined; and

- total revenues and total operating expenses of the school.

EXPENSES--Includes grants-in-aid, salary and payroll, travel
costs, equipment and supply purchases (general and administrative
overhead costs may be counted in total expenses only).

REVENUE--Includes, but is not limited to, gate receipts,
broadcast revenues and other conference distributions, appearance
guarantees and options, concessions, and advertising (student
activity fees, alumni contributions, and investment income not
allocable to a sport may be counted in total revenues only).

The school's reports must be independently audited every three
years. The reports and, where allowable by state law, the audits must
be made available to the Department and the public. At this time,
schools are not required to submit this information to the
Department.

Note that the definition of "expenses" found here is different from
the definition of "expenses" that is used for purposes of the EADA
requirements. Also, the PPA provisions described here specify the
teams for which data must be provided while the EADA provisions
require schools to provide certain data FOR ALL VARSITY
TEAMS.

LOAN COUNSELING

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. 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.
For a complete discussion of loan counseling requirements, please
see Chapter 6 (Perkins Loans), Chapter 10 (FFEL), and Chapter 11
and Direct Loan entrance and exit counseling guides (Direct Loans).

DRUG AND ALCOHOL ABUSE PREVENTION INFORMATION

Schools that participate in the campus-based programs must provide
information under the Drug-Free Workplace Act of 1988 (Public
Law 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. In addition, the Drug-Free Schools
and Communities Act (Public Law 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.
A school must provide the following in its materials:

[[Distribution of materials to all students & employees]]
- 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.

[[Information to be included in drug prevention materials]]
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 2.)

MISREPRESENTATION

[[Definition of misrepresentation]]
The General Provisions regulations 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.

SUBSTANTIAL MISREPRESENTATION--Any
misrepresentation on which the person to whom it was made could
reasonably be expected to rely, or has reasonably relied, to that
person's detriment.

MISREPRESENTATION-Any false, erroneous or misleading
statement made to a student or prospective student,*6* to the
family of an enrolled or prospective student, or to the Department.
This includes disseminating testimonials and endorsements given
under duress.

[[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 3-194 is currently unavailable for viewing on the SFA BBS.
Please reference your paper document or download the pdf files for
additional information]

[[The "Equity in Athletics Disclosure Act--Optional Form" on pages
3-195 through 3-202 is currently unavailable for viewing. Please reference
your paper document for additional information.]]


*2* At the time this publication went to print, a bill was passed
by Congress (but was not signed into law) that would change
the period of time that a school must examine to determine
completion and transfer-out rates for both the general student
body and rates related to athletically related student aid. If
signed into law, this bill would change the cohort year from
July 1-June 30 to September 1-August 31.

*3* In cases of separation or divorce, when it may be difficult to
locate both parents, the provision of the required information to the
parent who acts as guardian of the student is acceptable.

*4* If a head coach had responsibility for more than one team and
your school does not allocate that coach's salary by team, you must
divide the salary by the number of teams for which the coach had
responsibility and allocate the salary among the teams on a basis
consistent with the coach's responsibilities for the different teams.

*5* A school also may report those expenses on a per capita basis for
each team and may report combined expenditures attributable to
closely related teams, such as track and field or swimming and
diving. Those combinations must be reported separately for men's
and women's teams.

*6* The regulations define prospective students as individuals who
have contacted the school to inquire about enrolling at the school or
who have been contacted directly by the school or indirectly through
general advertising about enrolling at the school.

Last Modified: 07/21/1998