Competency Based Education Financial Aid Overview WASFAA – Reno, NV Lesley Phelps, Vice President, Regent Education Bob Collins, Vice President, WGU April 14, 2014

What is Competency Based Education? The decoupling of seat time from academic progress Progress is evaluated on mastery of content/skills rather than seat time Student paced vs. defined semesters, quarters, etc.

Why Competency Based Education? More accurately measure student learning Reduce time to graduation Reduce costs Student loan debt 2 nd only to mortgage loans in total household debt Positioning for potential funding model and institutional ranking changes Enrollment considerations

Why Competency Based Education? The Changing Needs of Learners Flexibility Changes in consumer behavior Changing demographics Increase in online learning

What are the challenges to implementing a CBE program? Accreditation State coordinating and governing boards Accrediting agencies U.S. Department of Education Translation of competencies Faculty buy-in Resource support Title IV financial aid 5

Why in financial aid a hindrance to these models? Decoupling of seat time from academic progress...huh? Financial Aid Management (FAM) Systems are designed around the concept of structured periods of enrollment Non-Term Enrollment models designed for self-paced learning, but FAM systems not designed to manage resulting in manual processes: Increased compliance risk Slower service Labor cost considerations l6

COMPETENCY-BASED EDUCATION How can CBL be managed in an efficient and compliant manner? Need to carefully analyze systems limitations to determine what enrollment model will work for you Reach out to your colleagues on campus and financial aid colleagues at like institutions Ensure financial aid is a key stake holder from the beginning

Western Governors University Founded in 1997 The principal mission of Western Governors University is to improve quality and expand access to post-secondary academic opportunity by providing a means for individuals to learn independent of time or place and to earn competency-based degrees and other credentials that are credible to both academic institutions and employers.

Student Demographics Colleges: Information Technology, Business, Teacher Education, and Health Professions Students are full-time, degree seeking at Baccalaureate and Masters level Current enrollment > 44,000 Most successful students: –start with some college experience –have work experience and motivation to earn degree –average age is 36 years

Student Population

Growing Interest in CBE Carnegie Foundation for the Advancement of Teaching re-examining the ‘Carnegie Unit’ Foundations working with regional accreditors and Dept of Ed to assure financial aid for CBE Gates Foundation supported project includes WA, IN, FL & TX colleges as partners Adapting and Adopting Competency-Based IT Instruction to Accelerate Learning funded by Department of Labor’s (TAACCCT)

Partner Colleges Developing CBE Programs Austin Community College, TX Broward College, FL Sinclair Community College, OH FL – Valencia College IN – Ivy Tech Community College (Ft Wayne & Lafayette) TX – Lone Star Community College WA – Bellevue College, Columbia Basin College, Edmonds Community College, Community College of Spokane

Design Principles for CBE 1) Degree reflects robust and valid competencies. 2) Students are able to learn at a variable pace and are supported in their learning. 3) Effective learning resources are available to students anytime and are reusable. 4) The process for mapping competencies to courses/learning outcomes/assessments is explicit. 5) The assessments are secure and reliable.

WGU Financial Aid Background HEA Reauthorization 1998 – eligible institution Distance Education Demonstration Program –Competency-based Model Education Domains No Grades (Narrative Transcript) Unbundled Faculty Model (Mentoring and Assessment) –Direct costs only in cost of attendance calculation –Non-Term (6 month payment periods) –SAP 100% successful completion every term –Students start 365 days a year –100% Distance Education

WGU Financial Aid Background Lessons Learned –Cost of Attendance (direct and indirect) – EFC = Need –Introduction of Competency Units (CUs) –Non-Standard Term – borrower based academic year –6-Month Terms begin on the first of each month –Grades of Pass and Not Pass (not narrative, not pass/fail) –66.67% Cumulative Satisfactory Academic Progress (SAP) –Flat term-based tuition to encourage acceleration Subscription model, fixed price per term regardless of CU’s Affordability of acceleration time to degree completion

Student Fraud Considerations WGU Orientation –Begins the 15 th of each month –Setting proper expectations – academic and financial Delay loan disbursement for all new students –30 day delay (45+ days of academic effort before $$$ ) Duplicate address reports (US and , IP) Third party identity management/biometrics Verification of identity –Notarized statement of educational purpose

Federal Financial Aid Delivery Academic Year (AY) – payment periods –ED defines AY as minimum of 24 credits and 30 weeks Standard Term (Full-time, ¾ time, ½ time) –Semester/Quarter/Trimester –Fall/Spring and sometimes summer (header or trailer) Non-Standard Term (Full-time, ¾ and ½ time) –Multiple entry points - Borrower Based Academic Year Non-Term and Clock Hour –Full-time - successfully complete 24 credits or 900 hours

Measurement of SAP Competency Based Model Degree Plan – no electives Academic Activity Verification (AAV) Qualitative Measure (Pass = B or better) –Mastery of subject matter (3.0 GPA exceeds 2.5 required) Quantitative Measure –Attempted versus completed –Institutional policy on treatment of transfer credits SAP appeal approval requires Academic Plan On-Time Progress (OTP) to Graduation –At least 12 CUs per six month term

SAP Overview Financial aid only awarded up to 150% of the program length At least 66.67% Cumulative SAP = Good Standing Less than 66.67% Term SAP = Warning New students less than 3 CUs per term = Terminated Termination and SAP Appeals –Extenuating circumstances - documentation & situation improvement –If approved, must complete 100% until cum SAP > 66.67% Unintended consequences Meeting OTP in a term does not necessarily mean the student is meeting cumulative SAP requirements 12/20 = 60.00% - OTP is good, SAP is bad - discouraging

Other Regulatory Definition of Credit Hour 34 CFR – Hot Topics - Program Integritywww.ifap.ed.gov Distance Education Definition 34 CFR –…support regular and substantive interaction between students and faculty Direct Assessment 34 CFR –DCL GEN (March 19, 2013) Return to Title IV (R2T4) 34 CFR –Withdrawal date of determination –Definitions of academic attendance, academic-related activity