| PublicationDate: 7/1/95 ChapterNumber: 1 ChapterTitle: Student Financial Aid Programs SectionNumber: 6 SectionTitle: The Fiscal Activity Calendar PageNumbers: 14-20 1.6 The Fiscal Activity Calendar Fiscal activities managed by postsecondary institutions occur at various points during the academic year, the award year, and the fiscal year. At some institutions, the academic year, the award year, and the fiscal year may be the same, while they may differ at other schools.*2* The 1992 reauthorization of the HEA established a definition of an academic year as part of the statute. In 1994, ED issued regulations to guide schools in interpreting that definition. 1.6.1 The Academic Year ((Definition of an academic year)) Section 481(d)(2) of the HEA states that an academic year must contain at least 30 weeks of instructional time over which a full-time undergraduate student is expected to complete 24 semester or trimester hours, 36 quarter hours, or 900 clock hours. The 30-week minimum may be reduced to less than 30 weeks, but not less than 26 weeks, if an institution can show good cause. ED may grant waivers of the 30-week requirement on a case-by-case basis and only to postsecondary institutions that offer two-year or four-year programs of study for which they award associate or baccalaureate degrees. 1.6.1.1 Term-Based Institutions ((Credit hours)) At a term-based institution that measures education program length in credit hours, a full-time undergraduate student must complete at least 24 semester hours or trimester hours or 36 quarter hours in an academic year. ((Clock hours)) At a term-based institution that measures education program length in clock hours, a full-time undergraduate student must complete at least 900 clock hours in an academic year. ((Term-based week)) For a term-based institution, a week of instructional time is defined as any consecutive seven-day period in which at least one day of regularly scheduled instruction, examinations, or preparation for examinations occurs. 1.6.1.2 Nonterm Institutions A nonterm institution is one that does not divide the academic year into semesters, trimesters or quarters. ((Clock hours)) At a nonterm institution that measures educational program length in clock hours, a full-time undergraduate student is expected to complete at least 900 clock hours in an academic year. ((Credit hours)) At a nonterm institution that measures educational program length in credit hours, a full-time undergraduate student is expected to complete the equivalent of 24 semester or trimester hours or 36 quarter hours in an academic year. ((Nonterm week)) Effective July 1, 1995, for a nonterm institution using either credit or clock hours, a week of instructional time is defined as any week in which at least 12 hours of regularly scheduled instruction, examinations, or preparation for examinations occurs. This new "12- hour rule" replaces the "5-day rule" that, for the 1994-95 award year, required that a week contain at least five days of instruction, examinations, or preparation for examinations. 1.6.2 The Award Year The financial aid award year is the 12-month period during which postsecondary institutions award Title IV and other federal financial aid funds to students. The award year runs from July 1 of one calendar year to June 30 of the next calendar year. For example, the 1995-96 award year begins on July 1, 1995 and ends on June 30, 1996. ((Payment and processing cycles)) For any award year, financial aid application processing begins on January 1 of the calendar year in which the award year begins; financial aid payment processing ends on September 30 of the calendar year in which the award year ends. For example, for the 1995-96 award year, processing began on January 1, 1995 and ends on September 30, 1996. Immediately following the end of an award year, schools must file reports on that award year's activities. 1.6.3 The Fiscal Year The fiscal year is defined by the institution. Examples of commonly used fiscal year periods are-- - January 1 to December 31 (the calendar year), - July 1 to June 30 (the traditional financial aid fiscal year), and - October 1 to September 30 (the federal fiscal year). For many institutions, the school fiscal year differs from the federal fiscal year. 1.6.4 The Federal Master Calendar To ensure timely delivery of Title IV funds to students, federal law requires that ED adhere to a master calendar (Section 482 of the HEA) when developing required publications, communicating with postsecondary institutions, issuing regulations, and performing other activities necessary to both ED's and institutions' administration of Title IV programs. ((Master calendar dates and deadlines)) For allocations of campus-based and Federal Pell Grant funds, the law mandates that ED adhere to the following master calendar dates in the year preceding the award year. - August 1--distribution of application for campus-based funds (Fiscal Operations Report and Application to Participate or FISAP) to institutions - October 1--final date for institutions to submit FISAP to ED - November 15--institutions receive edited FISAPs and computer printouts - December 1--institutions receive procedures for appealing campus-based award levels - December 15--institutions return any needed FISAP edits to ED - February 1--institutions receive tentative ED award levels for campus-based programs; institutions also receive final Federal Pell Grant Program Payment and Disbursement Schedule - February 15--closing date for ED to receive institutional appeals - March 1--appeals process completed - April 1--final award notifications sent to institutions by ED for campus-based programs - June 1--Federal Pell Grant Program authorization levels sent to institutions by ED ((Publication of regulations)) The master calendar also requires that regulations affecting a given award year be published no later than December 1 of the preceding calendar year. For example, for the 1995-96 award year, all final regulations were required to have been issued on or before December 1, 1994. However, these regulations take effect no earlier than July 1 of that award year. 1.6.5 Sample Calendars The sample calendars on pages 19 and 20 illustrate financial aid and fiscal activities that typically occur during a school year. Note that there may be an overlap of a given award year, academic year, or fiscal year. [[The charts on pages 18 (1995-96 Federal Application Processing System), 19 (Sample Financial Aid Calendar at a Term-Based Institution) and 20 (Sample Financial Aid Calendar at a Nonterm Institution) are currently unavailable for viewing. Please reference your paper copy for additional information.]] *2* See sections 1.6.1 for academic year definition, 1.6.2 for award year definition, and 1.6.3 for fiscal year definition. |