Session 39

The Big Picture

Linda BurkhardtKevin Campbell

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Eligible InstitutionTypes of Institutional Control

Institution of Higher Education

Proprietary Institution of Higher Education

Postsecondary Vocational Institution

A public or private nonprofit educational institution located in a state

A private, for-profit educational institution located in a state

A public or private nonprofit educational institution located in a state

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Eligible InstitutionEligibility Requirements

• Authorized by the state• Accredited by accrediting agency

recognized by the Department of Education (ED)

• Offers at least one eligible program of study

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Eligible ProgramsInstitution of Higher Education

• Associate, bachelor’s, graduate or professional degree, or

• At least a 2-year program acceptable for full credit toward a bachelor’s degree, or

• At least a 1-year training program that leads to a degree or certificate (or other educational credential) and prepares students for gainful employment in a recognized occupation

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Eligible ProgramsProprietary Institution of Higher Education and Postsecondary Vocational Institution

• Programs must provide training that prepares student for gainful employment in a recognized occupation and contain a minimum of:

1. 15 weeks instruction; 600 clock hours, 16 semester/trimester hours, or 24 quarter hours

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Eligible Programs2. 10 weeks of instruction; 300 clock hours, 8

semester/trimester hours, or 12 quarter hours

Must be a graduate/professional program or admit only students with equivalent of an associate degree

3. 10 weeks instruction; 300-599 clock hours (eligible for only (eligible for FFEL and Direct Loans

Must have been in existence for at least one year Must have at least a 70% completion rate and

70% placement rate in related job fields

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General Participation Requirements

• Voter registrationHEA 487(a)(23) and 668.14(d)

• Constitution DayFR May 24, 2005 and May 31, 2005

• Availability of GED program668.14(b)(13)

• Drug-Free Workplace and drug abuse prevention program668.14(c)

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General Participation Requirements

• Civil Rights and Privacy requirements99.31(a)(13) and (14)

• Notify ED of contracts with servicers668.25(e)

• Incentive compensation668.14(b)(22)

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General Participation Requirements

• Consumer Information Annual individual notice to students

containing list of consumer information and how to obtain it (includes Campus Security, Equity in Athletic Disclosure, Family Educational Rights and Privacy, Student Right to Know and general information about school)

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Financial ResponsibilityED reviews financial statements and systems and determines school’s ability to

Properly administer the FSA programs

Meet all of its financial obligationsProvide the services described in

official publications

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Administrative Capability• Outlines school’s ability to

administer the Title IV Programs in accordance with the law and regulations

• Reviewed by ED through program reviews and annual compliance audits

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Electronic Application for Approval to Participate

www.eligcert.ed.gov or E-App• Used to apply for designation as an eligible

institution, initial participation, recertification, reinstatement, change in ownership, or to update a current approval. Updates include changes such as, but not limited to, name or address change, new location or program, increased level of offering, change of officials, or mailing address for publications.

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Schools’ Contract With ED

Program Participation Agreement (PPA)

School agrees to comply with law, regulations and policies governing Title IV aid programs

• Eligibility & Certification Approval Report (ECAR) details school’s programs of study approved for Title IV funding

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Policy Development• Develop policies for processing

student files– Need to review on an annual basis– Update as necessary

• Keep policies in a Policy and Procedure manual– Organized for easy access– Available to all staff members for

easy consultationPoliciesand

Procedures

SFA

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What Policies & Procedures?• Refund policies• Title IV academic year definition• Cost(s) of attendance• Packaging policy• Satisfactory academic progress• Verification• Loan confirmation and counseling• Record retention

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How Do Schools Receive Title IV Funding?

• Establish required bank account(s) for receiving and maintaining funds

• Establish an account in the Department of Education’s Grants Administration and Payment System (GAPS) for requesting funds and reporting expenditures

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What Is GAPS?• Grants

Administration and Payment System– Financial

management support services for each Title IV program, except FFEL

• Provides online capability to– Request payments– Adjust drawdowns– Access current

grant and payment information

NOTE: ED will replace GAPS with “G5,” a new system for grants management and payments. Phase I will be in the last quarter of calendar year 2007.

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Systems You Need• SAIG mailbox

– ISIR’s– Default rate data

• Internet Access – IFAP– FSA 4 Schools– Eligibility & Certification

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Systems You Need• FAA Access to CPS Online

– Input FAFSA’s– View ISIR’s– Correct ISIR’s– Add school code to ISIR’s

• COD– Submit award and disbursement

data for Pell Grant, ACG, National SMART Grant, and Direct Loan

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Systems You Need• NSLDS user ID and passwords

– View student financial aid history– Enrollment reporting– Transfer Monitoring

• e-Campus-Based system– FSEOG & FWS authorizations– FISAP

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Determine Student Eligibility• Review FAFSA/ISIR

Resolve database match issues•Social Security Number•Citizenship•Selective Service•NSLDS•Veterans Administration

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Determine Student Eligibility• Review FAFSA/ISIR

Verification•Process by which certain required data reported on the FAFSA is reviewed for accuracy and completeness

Resolve conflicting information•Includes information held by other offices on campus

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Calculate NeedCOA-EFC=Need• Cost of Attendance

– Estimate of student’s educational expenses

– May have different costs for different programs of study ort categories of students

• Use EFC appropriate to number of months in enrollment period

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Package• Determine Pell Grant eligibility• Determine eligibility for other aid

Federal, state, institutional• Look at student’s outside resources

Must be included as estimated financial assistance

• Entrance counseling for loan borrowers

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Disbursement• Responsibility of Business Office • Money is drawn from GAPS• Title IV aid is used to pay tuition, fees,

and contracted room and boardPayment of other educational

expenses requires written authorization from student

• Disbursement may be credit to student’s account or check issued to student

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Disbursement• Title IV aid disbursed by payment

period over length of academic yearPayment periods differ depending on

structure of program of study•Standard term•Non-standard term•Non-term credit hour•Clock hour

• Disbursement requires notifications to student borrowers

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Student Exits• Exit counseling for loan borrowers• Withdrawals

R2T4•Calculation•Make required refunds in timely manner

•Notification and reporting of overpayments

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Reporting To ED• E-App• Annual compliance audit• NSLDS• COD• FISAP• Campus Security

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Contacts

Kevin Campbell• Phone: (214) 661-9488 • Email: kevin.campbell@ed.gov

We appreciate your feedback and comments.

We can be reached at:

Linda Burkhardt• Phone: (206) 615-2174 • Email: linda.burkhardt@ed.gov

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Please provide any comments regarding this training or the trainers

to:

Jo Ann BorelTitle IV Training Supervisor

joann.borel@ed.gov202-377-3930