Title: Advanced College Policy and Procedures
Document Title: Policy on Financial Aid Administration
Advanced College (AC) is an eligible institution authorized by the Department of Education (ED) to enroll students and grant Financial Aid (Grant & Federal Loans) to those who qualify. This manual has specific policies related to AC’s practices on Financial Aid. The policy also describes the handling of the Return to Title IV for students who have withdrawn from a program.
To identify the procedures in granting Financial Aid to student who is qualified, making sure the completeness and correctness of documentation submitted by each student. To identify processes in submitting FA documents to the third party servicer. To identify the processes when a student has not met satisfactory progress and has absent himself from classes (exceeding the allowable time) or when the student on his own volition requests withdrawal from the program.
Financial Aid Officer is responsible for the initial FA packaging of student. He/she is responsible for the timely and complete submission of documents to the schools’ third-party servicer, Deborah John and Associates(DJA).
All policies and procedures of Financial Aid should be in compliance with the generally accepted practices by Bureau of Postsecondary and Private Vocational Education and Commission on Vocational Education applicable to all students of the school.
AC is responsible for the institutional procedures provided by the third party servicer on institutional procedures. Please refer to DJA Financial Aid Procedures Manual for 2008/2009 page 1.
financial aid that does not have to be repaid unless student has been awarded incorrectly or has withdrawn from school. The amount of grant depends on the Cost of Attendance (Please refer to other Additional Procedures of this Manual), EFC, enrollment status (if full time or part-time) or whether student attend for a full academic year or less. PELL grants are generally awarded only to undergraduate students – those who have not earned a bachelor’s or graduate degree.
grant for full-time undergraduate enrolled in eligible program who receive Federal PELL Grants and are U.S. citizens and enrolled in at least a two-year academic program. The award is Up to $750.00 for first academic year undergraduate students.
Loans allow student to borrow for school. Student must repay loans with interest. Direct Loans are loans borrowed by eligible students and parents directly from the U.S. Department of Education at participating schools. The U.S. Department of Education is the lender. Direct Loans include:
Loan available to student who Demonstrates financial need. The U.S. Dept of Education pays the interest while the student is in school at least half-time (referred to as a “grace period”). A postponement of loan payments is called deferment. The amount of the Direct Subsidized Loan can not exceed the financial need.
Loan allowed if even student does not demonstrate financial need. The U.S. Dept of Education does not pay interest on Direct unsubsidized Loan. For unsubsidized loans, student is responsible for paying the Interest that accrues on the loan from the time the loan is disbursed until it is paid in full. Student can pay the interest while in school or during a period of deferment or forbearance Or interest may be accumulated to add to the principal amount of the loan.
Plus loan is made available to parents of dependent student. Plus applicants (both parents and dependent student must meet the general eligibility requirements for federal student financial aid. They must be:
This Grant provides assistance to exceptionally needy undergraduate students. Students are exceptionally needy if they have the lowest EFCs. A priority is given to Pell Grant recipients. Additionally, the student must be enrolled or accepted for enrollment as an undergraduate students and must not have previously earned a bachelor’s degree or first professional degree
This program provides part-time employment to undergraduate and graduate students who need the earnings to help meet their costs of postsecondary education. The FWS program encourages students receiving FWS assistance to participate in community service activities.
To be eligible for a FWS job, a student must meet all general eligibility criteria and must have financial need that is his cost of attendance must be greater than his Expected Family Contribution (EFC).
Third Party servicer is given authority by generating ISIR from FAFSA. When the ISIR is received by third party, the latter will inform AC if the student is selected for verification or coded with a comment code ( C ). AC will then forward the appropriate tax return and/or an affidavit for not filing tax returns in addition to the completed verification worksheet(dependent or independent). If C coded, AC will need to provide appropriate document to clear. Verification is the process of checking the accuracy of the data supplied by the student. Items that generally must be verified are as follows:
Third party will cross check documents with ISIR for accuracy and resubmit ISIR for corrections , if necessary through FAA Access to CPS online. Please refer to DJA FA Manual of Procedures page 24. If during the verification, AC discovers an overpayment situation, AC should make best effort to collect the overpayment. If AC fails to collect the overpayment and the situation was not a result of the school’s error, AC must refer the overpayment case to ED.
An student is independent if at least one of the following applies:
Dependency Overrides may be used only on a case-to-case basis to document unusual circumstances to override from dependent Student to independent student. The following do not qualify as “Unusual Circumstances” or warrant a Dependency Override:
Please refer to DJA FA Manual of Procedures page 55 for more detailed guidelines for Dependency Override and form to be Accomplished.
AC prepares the Award Letter /Authorization to Credit Account form (Exhibit G) and Preliminary Financial Aid Award (Exhibit H) with information from the Award Letter sent by third party. An Award Letter includes:
Student is informed of how and when the funds will be disbursed and student is requested to sign this form.
1536 Clock Hr (VN) – 51 weeks
Grade Level 1
Associate Degree – 4 Quarters
AC students’ payment periods may sometimes not fall exactly into an award Year. This is called a crossover Payment Period. The payment can not occur in the subsequent award year if more than six months of the payment Period occurred in the given award year. AC may request payments into subsequent award year if the student fails to acquire Satisfactory Academic Progress. In doing this, the student has to apply for the subsequent FAFSA Award Year. Please refer to Policy and Procedure on Satisfactory Academic Progress.
FA officer then checks the attendance of each student to determine if he/ she has met the required number hours for a certain payment period. Please refer to 4.a for the payment periods.
Students are advised via the School Catalog that the school require students to maintain satisfactory academic and attendance progress. qualitative standard requires the student to achieve a minimum grade point average of 2.0 and must maintain a cumulative grade point average of at least 2.0 for the remainder of the program. All periods of attendance are counted towards the maximum time frame and the clock hours Completed excluding periods during an approved leave of absence.
In order to ensure completion of the program within the maximum time Frame, Advanced College requires students to successfully complete 67% of the credit hours attempted in each payment period. All students must have completed a minimum of 67% of the credit hours attempted in order to graduate within 150% of the normal time frame. Students in the non-term programs will not be paid Title IV aid until they have completed all the credit hours in that payment period as well as the weeks in the payment period.
Students who fail to maintain satisfactory progress will be placed on academic or attendance probation until the deficiencies are corrected or until the end of the next assessment period, whichever comes first. While on academic or attendance probation, the student remains eligible for all Title IV financial aid funds. Students who have been on probation and fail to correct the deficiencies by the end of the probationary period may terminate from the program.
Student is not considered successfully completing credits if she has:
“F” - Failing grades
“I” - Incompletes
“W” – Withdrawals/Drop
If the student did not meet SAP, funds can not be requested from DJA to be disbursed. If the students are meeting SAP, AC will request DJA for the disbursement of funds.
For new class starts, AC will need to send DJA Student Disbursement Report. (See Exhibit J) This report must include the hours and weeks completed and whether the student is making satisfactory or unsatisfactory academic and attendance progress in their program. The student will only get their second disbursement if the required hours have been completed and if they are maintaining academic progress as defined in the school catalog. Based on this report, third party servicer draws down federal funds and will send to AC via fax the following:
Accounting Officer posts and batch each disbursement to each of the student in the list. Accounting Officer then exports transactions for the day from DiamondD to AC Quickbooks.
Prepares check to transfer funds from specific account (PELL account no. 10434-06458 and/or Direct Loan account no. 09133-60944) to Operations account no. 10433-11455.
Students should submit to the registrar, dean, head of the academic department, or other appropriate official, written request that identify the record(s) they wish to inspect. The school official will make arrangements for access and notify the student of the time and place where the records may be inspected.
Students may ask the college to amend a record that they believe is inaccurate or misleading. They should write the school official responsible for the record, clearly identify the part of the record they want changed, and specify why it is inaccurate or misleading
One exception which permits disclosure without consent is disclosure to school officials with legitimate educational interests(ex: administrative, academic, supervisory staff)
Family Policy Compliance Office
U.S. Department of Education
400 Maryland Ave, SW, Washington, DC, 20202-4605
For over-awards, AC must immediately repay the funds to their PELL or Direct Loan account with Dept of Education (ED).
AC credits loan and grant payments to the student’s ledger. If the loan money exceeds student’s school tuition, AC will pay the student or return to lender the credit balance within 14 days from the day the loan money was credited to student’s account.
Generally, the student’s COA is based on costs for the actual period of enrollment (including periods more or less than 9 months) and it applies to all Title IV programs(Federal PELL Grant; Federal Campus-Based; FFELP or DL). In the case of PELL Grant, the costs are always prorated to the costs of a full- time student for a full academic year. Components:
DJA calculates Cost of Attendance for the Title IV programs that AC contracts with DJA. AC has to complete DJA Financial Aid Budget form (Exhibit K) every time there is a tuition increase.
Enrollment Reporting in NSLDS must be submitted within 30 days. ERRs are downloaded electronically by DJA every 60 days. DJA sends to AC via fax the downloaded report. AC then goes over the students in the list and indicates If the student is Full Time(F), Graduate(G), Withdrawn(W, on Leave of Absence(L), Never Attended (X) or Record not Found(Z).
The completed ERR must be faxed back to DJA within 2 weeks. If there are errors, DJA will send back to AC for immediate correction. The corrected ERR is due back at DJA within seven (7) days, as the corrected ERR is due at NSLDS within 10 days. DJA will then enter the updated information and send off the file electronically to NSLDS. Once accepted, DJA will fax the receipt to AC.
Data submitted by students should be checked for completeness and accuracy. ISIR must be completed and submitted by the student’s last day of attendance or by the date posted by USDE for each year. AC notifies students of the documents required to complete the verification process. Students who are selected for verification must complete the verification process (AC FA Manual of Procedures 3.b and 3.c) and submit to all required forms to DJA such as signed tax returns, verification worksheet and any other documents and have the ISIR corrected within 120 days of their last day of attendance or date posted by USDE. If the student does not complete verification within the time frame, the student will not qualify for Title IV at this institution.
AC is required to report cases of suspected fraud or other criminal misconduct in connection with aid applications to the address printed in the appropriate award years’ ED Verification Guide. DJA may report to Office of Inspector General (OIG) or to local law enforcement officials. Signs of student aid fraud are as follows:
Quarterly report submitted to http://surveys.nces.ed.gov/IPEDS/DataForms. This survey provides information on school population: ethnicity, gender and age. The survey also includes the number of students enrolled, active, withdrawn and graduate.
It is the third party’s responsibility(DJA) to reconcile disbursements/refunds against bank statements. DJA ensures that a timely reporting of Disbursements to Common Origination & Disbursement (COD) or risk having cash disbursements frozen. Disbursements must be reported to COD otherwise, Current Funding Level will not be increased until all cash previously Drawn down and disbursed as been reported to COD as actual disbursements and has been accepted.
Before the end of the next month, AC sends via fax copy of the previous month’s bank statements to DJA. DJA reconciles. If there are un-reconciled transactions, DJA informs AC of the latter. AC then investigates and informs DJA via return fax the nature of the discrepancy and when it was resolved.
If everything is cleared, DJA sends AC a reconciliation statement showing balance accounts/statements.
AC notifies the borrower of the following:
AC will send in writing no earlier than 30 days before and not later than 30 days after crediting the student’s school account.
If the borrower wishes to cancel a loan, the borrower must inform the school. If within 14 days after the date the school sent the borrower notice explaining the Borrower’s right to cancel, the borrower has the right to cancel however, after this deadline; AC may still honor the request but not required to do so. Please see Exhibit L1 & L2.
Registrar informs FA officer in writing on a weekly basis, student who has not returned from LOA, has been absent for more than 14 days straight or students who has been terminated or wish to drop from the program.
FA Office may proceed with the Return of Title IV procedures. The Department of Ed regulations provide that the percentage of Title IV aid that is Earned by the student is equal to the period completed by the student (except If that percentage is more than 60%, then the student is considered to have Earned 100 % of the Title IV aid). Scheduled breaks of at least 5 consecutive days and days in which the student was on an approved leave of absence are not included from this calculation.
Drop date should be 21 days from date of determination and Refund should be made within 45 days from date the student is considered dropped.
AC should ensure that the following documents are in the FA student file by completing the FA checklist to include:
Pre-enrollment/ Financial Forms
General Financial Aid (if applicable)
Professional Judgment Documents (If applicable)
Federal PELL Grant Recipients (if applicable)
Federal Stafford/Unsub Loan Recipient (If applicable)
Federal PLUS Loan Recipient (If applicable)