FEDERAL PROGRAM INTEGRITY REGULATIONS

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FEDERAL PROGRAM INTEGRITY REGULATIONS

• Spring 2011
• Webinar Series
• Webinar 2

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PI REGS AGENDA

• Gainful Employment Reporting and Disclosures
  600.2, 600.4, 600.5, 600.9, 668.6
• Satisfactory Academic Progress 668.16(e),
  668.32(f), 668.34
• Written Arrangements 668.5
• State Authorization 600.9 and 668.43

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PI REGS GE REPORTING AND DISCLOSURES

• Gainful employment
• The HEA defines a proprietary school as an
  institution that provides an eligible program of
  training that prepares students for gainful
  employment in a recognized occupation.
• Public or private non-profit schools are defined
  as institutions of higher education

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PI REGS GE REPORTING AND DISCLOSURES

• These reporting and disclosure requirements apply
  to all programs that lead to gainful employment
  in a recognized occupation
• All programs at proprietary schools
  (except BA degrees in liberal arts)
• Non-degree (certificate or diploma) programs at
  public and non-profit institutions

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PI REGS GE DISCLOSURES

• Disclosures must be made by July 1, 2011
• Intent of the provisions is to enable students
  to make an informed choice about a programby
  making the disclosures in a clear, timely, and
  meaningful manner.
• Information must be available in schools
  promotional materials conveyed to prospective
  students.

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PI REGS GE DISCLOSURES

• Disclosure information must be
• Prominently displayed on the home page of the
  program website
• Posted in an open format that can be retrieved,
  downloaded, indexed, and searched by commonly
  used Web search applications.
• Open-format platform-independent and
  machine-readable
• Simple and meaningful

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PI REGS GE DISCLOSURES

• Website must provide prominent and direct links
  to the program web pages on any other pages
  containing general, academic, or admissions
  information about the program.
• Institutions must use the disclosure form
  developed by ED when it becomes available it
  will be a template similar to the NPC

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PI REGS GE DISCLOSURES

• For each program, the institution must disclose
• Occupations by name and SOC codes that the
  program prepares students to enter, along with
  the links to occupational profiles on ONet
• On-time graduation rate

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PI REGS GE DISCLOSURES

• Tuition and fees, books and supplies, room and
  board the institution charges a student for
  completing the program within normal time
• Placement rate for completers
• Median loan debt as determined by ED
• Median middle in a range not average (mean)

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PI REGS GE DISCLOSURES

• Occupations by name and SOC code
• http//online.onetcenter.org/crosswalk/CIP
• Enter the full 6 digit CIP code institution must
  post the links and names of the occupations that
  are listed
• For CIP codes that result in more than 10
  occupations, the school may provide links to a
  representative sample of the SOCs for which its
  graduates typically find employment within a few
  years after completing the program.

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PI REGS GE DISCLOSURES

• On-time graduation rate
• Defined by award year (July 1st through June
  30th)
• Of the students who completed the program in the
  most recently completed award year, who completed
  the program within normal time
• Normal time is what the institution publishes
  in the catalog (668.41(a)) and may include
  make-up days

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PI REGS GE DISCLOSURES

• Regardless of transfers, program changes, LOAs
• Students who transfer in must complete within the
  normal program length from the point of entry,
  regardless of any transfer hours
• Excused absences are permissible within the
  lesser of 10 of the payment period clock hours
  or the threshold established by the state or
  accrediting agency

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PI REGS GE DISCLOSURES

• On-time graduation rate is NOT
• ACCET completion rate
• State completion or graduation rate
• SRTK completion rate
• Methodology focuses on the concept of on-time,
  not program completion overall

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PI REGS GE DISCLOSURES

• Tuition and fees, books and supplies, room and
  board the institution charges a student for
  completing the program within normal time
• Must disclose on the same program web page as the
  other information
• Books and supplies are typical costs for
  completing the program, unless included as part
  of tuition and fees

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PI REGS GE DISCLOSURES

• Room and board charges if the institution
  provides it
• May disclose other costs, such as transportation
  and living expenses
• Must include a link or access to the program cost
  information required under 668.43(a)
• Institutional information requirementsincludes
  tuition and fees, room and board, books and
  supplies, estimates of transportation costs, any
  additional costs

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PI REGS GE DISCLOSURES

• Placement rate
• NCES will develop a placement rate methodology
  and the processes necessary for determining and
  documenting student employment and reporting
  placement data to the Department using IPEDS
• Until that methodology is in place, schools must
  use the state or accrediting agency placement rate

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PI REGS GE DISCLOSURES

• Institution must disclose on website and in
  promotional materials placement rate by program
• If available or can be determined from
  institutional placement rate calculations
• The institution must identify the accrediting
  agency or state agency under whose requirements
  the placement rate was calculated

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PI REGS GE DISCLOSURES

• Median Loan Debt
• Institutions report institutional financing plan
  debt to EDthe amount a student is obligated to
  repay upon completing the program.
• Institutions must also report any private
  education loans it knows about
• Private education loans can include institutional
  loans

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PI REGS GE DISCLOSURES

• Private education loans do not include an
  extension of credit if 1) the term of the
  extension of credit is 90 days or less OR 2)
  interest is not charged and the term of the
  extension of credit is one year or less, even if
  payable in more than four installments

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PI REGS GE DISCLOSURES

• In the preamble, ED states that
• any loan, extension of credit, payment plan, or
  other financing mechanism that would otherwise
  not be considered a private education loan but
  that results in a debt obligation that a student
  must pay to an institution after completing a
  program, is considered a loan debt arising from
  an institutional financing plan and must be
  reported as such under 668.6(a)(4).

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PI REGS GE DISCLOSURES

• ED will use the reported private loans and
  financing plan data in conjunction with Title IV
  loan debt to determine a median loan debt for
  each educational program
• Title IV loan debt is both FFEL and DL, from
  NSLDS
• Does not include debt incurred by students at a
  prior institution, unless there is common
  ownership or control, or otherwise related
• If a student changes programs, ED associates the
  amount of debt incurred by the student to the
  highest credential program completed

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PI REGS GE DISCLOSURES

• Example
• Student attends Medical Assisting certificate
  program at ABC Institute. While enrolled in that
  program, student borrows 9,500 Stafford loans.
• Student completes MA certificate and enrolls in
  Medical Office Management OAD. While enrolled in
  the OAD program, she borrows an additional
  15,000.

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PI REGS GE DISCLOSURES

• If she does not complete the OAD program, only
  the debt associated with the MA program (9,500)
  is used by ED when calculating the median loan
  debt for the MA certificate program.
• If she does complete the OAD program, the total
  debt (9,500 15,000 24,500) is used by ED
  when calculating the median loan debt for the OAD
  program.

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PI REGS GE DISCLOSURES

• ED will provide to schools for each program
  offered by the school
• Median loan debt (total)
• Median loan debtFFEL and Direct Loans
• Median loan debtprivate and institutional
  financing
• Until ED provides the info, schools must
  calculate themselves (per Regulatory Update
  Workshop)
• School includes this information on the program
  web page and in promotional materials

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PI REGS GE REPORTING

• Reporting is required by October 1, 2011
• Will be annual reporting requirement with
  electronic format DCL will be published with
  details
• Applies to all gainful employment programs
  currently offered by institution
• In future years, report will be due no earlier
  than September 30th

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PI REGS GE REPORTING

• In first report due October 1, 2011, school must
  report on
• 2006-2007 award year (if available)
• 2007-2008, 2008-2009, 2009-2010 award years
• If a school cannot provide some or all of the
  data for any award year, it must provide an
  explanation to ED as to why the data is not
  available

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PI REGS GE REPORTING

• Reporting data for each award year
• Identifying information about the school and
  about each student who enrolled in each program,
  along with the CIP code of the program if the
  student began attending the program

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PI REGS GE REPORTING

• For each student who completed a program during
  the award year
• The name and CIP code of the program, and the
  date the student completed the program
• The amounts the student received in private
  education loans and the amount of institutional
  financing the student owes the school upon
  completion
• Whether the student matriculated to a higher
  credentialed program at the school, or to such a
  program at another school (if there is
  documentation)

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PI REGS GE REPORTING

• For each program, by name and CIP code, the total
  number of students enrolled in the program at the
  end of the award year, and identifying
  information for those students

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PI REGS GE REPORTING

• School Perspective
• DCISAMPLE PROGRAM DISCLOSURE
• DCI Medical Assistant DCI Website

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PI REGS SATISFACTORY ACADEMIC PROGRESS

• Institutions must notify students of the
  effective date of the revised policy
• Crossover payment periods institution may
  decide to use the current SAP policy this must
  be addressed with the effective date of the new
  policy
• Institutions may evaluate different categories of
  students differently
• Must be consistent within each category

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PI REGS SATISFACTORY ACADEMIC PROGRESS

• SAP evaluations must occur at the end of a
  payment period
• For non-term programs, this may be a significant
  change and could be difficult to implement
• Payment period end dates can vary by student
• For programs one academic year or less, SAP must
  be evaluated at the end of each payment period

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PI REGS SATISFACTORY ACADEMIC PROGRESS

• 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 with the end of a payment period
• GPA and pace (rate of progress) must be measured
  at each evaluation

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PI REGS SATISFACTORY ACADEMIC PROGRESS

• Minimum GPA
• A student must have a C average or equivalent
  after two years of attendance, regardless of
  enrollment status
• Pace
• the pace at which a student must progress
  through his or her educational program to ensure
  that the student will complete the program within
  the maximum timeframe. . .

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PI REGS SATISFACTORY ACADEMIC PROGRESS

• For credit hour programs, pace must be measured
  as credits earned vs. credits attempted
• Remedial coursework may be included when
  determining pace this is up to the institution
• Transfer credits MUST be counted as both earned
  and attempted credits

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PI REGS SATISFACTORY ACADEMIC PROGRESS

• SAP Statuses
• Warning and Probation are defined and must be
  used as defined in the regs
• Both allow for one payment period of eligibility
• Student must be in attendance
• Not possible to have consecutive payment periods
  on warning or on probation it is possible to
  have more than one payment period
  (non-consecutive) on either throughout a
  students academic career
• New concept of Academic Plan

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PI REGS SATISFACTORY ACADEMIC PROGRESS

• Financial Aid Warning Status
• May only be used by institutions that evaluate
  SAP at the end of every payment period
• The first time a student is not meeting SAP
  standards, he or she can be placed on Warning,
  without an appeal
• The student continues to be aid eligible

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PI REGS SATISFACTORY ACADEMIC PROGRESS

• Financial Aid Probation Status
• Student is not meeting SAP standards and appeals
• After payment period on Warning OR
• If institution evaluates SAP annually for that
  program (instead of after every payment period)
• The appeal is granted and the student can regain
  SAP status within one payment period on Probation

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PI REGS SATISFACTORY ACADEMIC PROGRESS

• Appeals
• Optional institutions do not have to allow
  appeals
• Institutions decide how and when students may
  appeal how often and how many times a student
  may appeal
• Appeals must contain two elements
• Why the student failed to make SAP AND
• What has changed in the students situation to
  allow the student to demonstrate SAP at the next
  evaluation

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PI REGS SATISFACTORY ACADEMIC PROGRESS

• The basis on which a student may appeal must be
  included in the policy The death of a
  relative, an injury or illness of the student, or
  other special circumstances. . .
• Outcome of granting an appeal
• Probation (one payment period) OR
• Academic Plan

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PI REGS SATISFACTORY ACADEMIC PROGRESS

• Academic Plan
• Optional for institutions to include in their SAP
  policy Academic plans need not be complicated
  or detailed. . .
• Specific to that student
• Ensures that student is able to meet SAP
  standards by a specific point in time

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PI REGS SATISFACTORY ACADEMIC PROGRESS

• the institution has the flexibility to specify
  whether students on an academic plan would have
  their academic progress evaluated at the same
  time as other students, or whether they would be
  subject to more frequent SAP evaluations. They
  should determine what is best for students and
  make their policy clear in their SAP standards.

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PI REGS SATISFACTORY ACADEMIC PROGRESS

• Maximum Timeframe
• 150 is unchanged institutions define MTF as
  they determine is most appropriate
• The 150 MTF applies only to Title IV
  eligibility whether a student can continue in
  the program and complete his or her program is
  established by academic criteria
• Notification
• Only required for students if the results of the
  SAP evaluation affects the students T4
  eligibility

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PI REGS SATISFACTORY ACADEMIC PROGRESS

• School Perspective
• DCI Sample SAP POLICY

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PI REGS WRITTEN ARRANGEMENTS

• Does not apply to public or private nonprofit
  institutions
• Institutions not under common ownership or
  control no limitation
• Institutions under common ownership or control
  degree or certificate-granting institution must
  provide more than 50 of the program

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PI REGS WRITTEN ARRANGEMENTS

• Degree or certificate-granting institution is
  required to have all the necessary approvals to
  offer the educational program in the format in
  which it is being offered
• Distance education, for example institution has
  written arrangement with another entity to offer
  some DE courses but if the proportion goes over
  50 of a program, accrediting agency approval is
  required

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PI REGS WRITTEN ARRANGEMENTS

• Arrangements between eligible and ineligible
  institutions or organizations permissible if the
  ineligible institution has not
• Had its Title IV eligibility terminated
• Voluntarily withdrawn from Title IV eligibility
  under a termination, show-cause, suspension or
  similar order from the state, accrediting agency,
  guarantor, or ED

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PI REGS WRITTEN ARRANGEMENTS

• Had its Title IV certification revoked by ED
• Had its Title IV recertification application
  denied by ED OR
• Had its Title IV certification (initial)
  application denied by ED.

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PI REGS WRITTEN ARRANGEMENTS

• The institution must include in its consumer
  information a description of the written
  arrangements (668.43(a)(12))
• The portion of the program the degree or
  certificate-granting institution is not
  providing
• The name and location of the other institution or
  organization that is providing that portion of
  the program

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PI REGS WRITTEN ARRANGEMENTS

• The method of delivery of the portion of the
  program not provided by the degree or
  certificate-granting institution and
• Estimated additional costs a student may incur as
  the result of enrolling in a program that is
  provided in part under the written arrangement

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PI REGS STATE AUTHORIZATION

• Institutions must be state approved or
  licensedif a state does not have an approval or
  licensing process, the state must implement one
• The state must have a process to review and act
  on complaints

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PI REGS STATE AUTHORIZATION

• Institutions must make available to students and
  prospective students information about filing
  complaints with their accrediting agencies and
  with the state approval or licensing entity and
  any other relevant state agency that would handle
  a students complaint
• Could be multiple agencies

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PI REGS STATE AUTHORIZATION

• An institution that offers distance education
  programs must provide the contact information for
  the state in which it is located and also provide
  the information for states in which it provides
  DE courses to the extent that the states have
  licensure or approval for institutions providing
  DE coursework

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PI REGS STATE AUTHORIZATION

• An institution that offers distance or
  correspondence education in a state in which it
  is not physically located must meet any State
  requirements for it to be legally offering
  distance or correspondence education in that
  State. An institution must be able to document
  upon request from the Department that it has such
  State approval.

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PI REGS STATE AUTHORIZATION

• For more information on states distance
  education regulations
• http//wcet.wiche.edu/advance/state-approval
• WICHE Cooperative for Educational Technologies
• Go to State Approval A Starter List

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PI REGS STATE AUTHORIZATION

• DCL GEN-11-05
• For the 2011-2012 award year only, the
  Department will consider an institution to be
  making a good-faith effort to prospectively
  comply with the distance education regulations
  for State authorization, if
• The institution has applied for approval of its
  offerings in such a State, either in response to
  the publication of the regulations, or earlier if
  the State notified the institution that such
  approval was required

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PI REGS STATE AUTHORIZATION

• The institution is able to document its
  application for approval and the applications
  receipt by the State and
• The institution notifies the Department when the
  State issues its decision on the pending
  applications for approval.
• If a state does not license or approve
  institutions for DE coursework, the institution
  is considered to be legally operating in that
  state

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PI REGS STATE AUTHORIZATION

• The institution must identify where a student is
  located and seek approval from that state.
• While the location of the student is initially
  determined at the time of enrollment in a
  program, consistent with other determinations of
  student eligibility, it must also be reevaluated
  each time an institution makes a new award to a
  student.

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PI REGS STATE AUTHORIZATION

• There is no federally set minimum number of
  students that triggers the requirement for state
  licensure or approval
• Some states may have de minimus requirements

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CONTACT INFORMATION

• Judy Hendrickson jhendrickson_at_accet.org
• Kris Strom kstrom_at_choiceconsulting.com
• Peggy Tiderman ptiderman_at_dci.edu