Final Regulations Published 10/29/10

 Repeating Coursework  Ability to Benefit rules  Validity of High School Diploma  Gainful Employment  Definition of Credit Hour  Verification  Misrepresentation  SAP

 R2T4 – attendance  Disbursement  R2T4 – defining “withdrawals”  Written arrangements  Incentive Compensation  State Authorizations

NASFAA ntegrity_Final_Rule_Resources.aspx DOE s/110110ProgramIntegritydated pdf

 An institutionally established equivalency that reasonably approximates not less than-  One hour of classroom or direct faculty instruction and a minimum of two hours of class student work per week OR  Equivalent work for other academic activities as established by the institution  Including lab work, internships, practica, and studio work.

 The Department of Education (ED) states in the preamble to the new rule that it believes the definition to be consistent with general practice, and that many institutions "are already following the definition of a credit hour or a reasonably comparable standard that would require minimal or no adjustment for purposes of participating in Federal programs."

 For programs longer than an academic year in length, SAP is measured at the end of each payment period or at least annually to correspond to the end of a payment period.

 Elements of SAP standards will still include qualitative component (GPA), a quantitative component referred to as the student’s pace, and a maximum timeframe (referred to as the 150% of the published length of the program).  You must also continue to include – How GPA and pace of completion if affected by, incompletes, w/d, repetitions, and transfer credit from other schools.

 Programs of study that are one academic year or less in length – MUST evaluate SAP at the end of each payment period.  Programs longer than one academic year –  Must evaluate at least annually to correspond with end of the payment period  School may evaluate at end of each payment period.

 SAP Warning –  Status assigned to a student who fails to make SAP at an institution that evaluates SAP at the end of each payment period  Student may continue to receive T4 aid for one payment period  No appeal necessary for this status

 SAP Probation –  Status assigned by an institution to a student who fails to make SAP and who has appealed and has had eligibility for T4 aid reinstated.  You may impose conditions for student’s continued eligibility to receive T4 aid  Student may receive aid for one payment period

 SAP Failure –  Status assigned by an institution to a student who fails to make SAP  After Warning period and non-SAP continues;  After Probation period and non-SAP is determined;  After non-successful appeal

1. End of 1 st term = Non-SAP 2. Go to a Warning Status (if checked each term) 3. After 2 nd term – AND remains Non-SAP – student must appeal 4. If appeal is approved – student goes on Probation (stipulations on next slide) 5. If not successful – SAP Failure – not eligible. 6. If only checked annual – non-SAP student automatically go to failure.

 Probation –  The student MUST be mathematically able to complete and make SAP by end of next term. If not – the student cannot receive T4 aid.  The student must be successfully following an academic plan (which requires a policy, i.e., who designs, who meets with the student, how is success tracked, etc.).

 Includes language regarding repetition of a previously passed course  The final rule allows repeating any coursework previously taken in a program as long as it is not a result of: 1. More than one repetition of a previously passed course, or 2. Any repetition of a previously passed course due to the student failing other coursework.

 It amends definition of full-time student to allow repeated coursework to count toward enrollment status in term-based programs 1. May repeat previously passed course once 2. May repeat failed course until it is passed

 Schools must monitor this to determine eligibility based on enrollment status and T4 eligibility.  The law does not require institutions to allow repetitions – it only addresses the treatment of T4 funds regarding repeats.

 Changes definitions – 1.Subsidized – applies to T4 funds where eligibility is based upon EFC - Pell, FSEOG, FWS, Perkins, DL Sub 2.Unsubsidized – applies to T4 funds NOT based on EFC - TEACH, DL Unsub, DL PLUS

 All applicants selected for verification (either by CPS or school) – must be verified BEFORE any PJ adjustments made to FAFSA  Removes the 30% applicant pool  Revises exclusions, i.e., Palau, etc., no longer included.  Allows updating of marital status (optional!). This is not a PJ. School may set a cut off date.

 Beginning – verification items will be specified for individual applicant (may not require all “5-item” verification elements).  Tolerance is eliminated ($400). If more than $25 (dollar items) – must resubmit.  All non-dollar item changes – MUST be resubmitted – regardless if EFC does not change.

 No longer limits students to lesser Pell amount (highest EFC) if verification is completed after enrollment.  IRS retrieval is acceptable for verification – ONLY code “02”

 Any program at a public school that is NOT – 1. A program leading to a degree 2. A transfer program of a least two years  Institutions must annually report on students enrolled in programs leading to gainful employment in a recognized occupation.

 Reporting deadlines - By 10/1/ award year info , 08-09, award year info and beyond – - No earlier than 09/30 but no later than the date established by the Secretary.

 Disclosures must include:  Occupations (by name and SOC codes) its programs prepare students to enter  Links to occupational profiles on O*NET  Costs – tuition/fees, r/b and b/supp.  May include additional costs.  On-time completion rate for each program  Placement rate for students completing each program  Median loan debt incurred by students

1. Deleted questions regarding enrollment status, whether student wants a loan or not, planning to complete course work to become an elementary or secondary teacher. 2. Added FAFSA question 27 Collects name, city and state of HS Paper applicants Web applicants Output files

3. Asset threshold filtering questions Dependent Students Independent Students 4. ACG – SMART 5. IRS Retrieval