federal program integrity regulations spring 2011 webinar series webinar 2

FEDERAL PROGRAM INTEGRITY REGULATIONS

Spring 2011Webinar Series

Webinar 2

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 program—by making the disclosures in a clear, timely, and meaningful manner.”

– Information must be available in school’s “promotional materials conveyed to prospective students.”

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• 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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• 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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• 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 O*Net

– On-time graduation rate

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– 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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• 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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http://online.onetcenter.org/crosswalk/CIP




• 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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– 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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• 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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• 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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– 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 requirements—includes

tuition and fees, room and board, books and supplies, estimates of transportation costs, any additional costs

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• 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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– 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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• Median Loan Debt– Institutions report institutional financing plan debt

to ED—”the 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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– 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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– 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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– 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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– 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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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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– ED will provide to schools for each program offered by the school:• Median loan debt (total)• Median loan debt—FFEL and Direct Loans• Median loan debt—private 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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• 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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• 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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– 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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– 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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School PerspectiveDCI—SAMPLE PROGRAM DISCLOSURE

DCI Medical Assistant – DCI Website

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http://www.dci.edu/

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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• 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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• 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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1. Minimum GPA– A student must have a C average or equivalent

after two years of attendance, regardless of enrollment status

2. 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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– 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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• 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 student’s academic career

– New concept of Academic Plan

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• 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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• 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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• 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 student’s situation to allow

the student to demonstrate SAP at the next evaluation

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– 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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• 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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– “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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• 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 student’s T4 eligibility

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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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• 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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• 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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– 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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• 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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– 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 licensed—if 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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• 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 student’s complaint– Could be multiple agencies

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• 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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• 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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• 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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http://wcet.wiche.edu/advance/state-approval




• 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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• The institution is able to document its application for approval and the application’s 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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– 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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– 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 [email protected]

Kris Strom [email protected]

Peggy Tiderman [email protected]

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mailto:[email protected]



federal program integrity regulations spring 2011 webinar series webinar 2

Documents

ge disclosures disclosures

pi regs

ge disclosures occupations

ge disclosures website

ge disclosures tuition

disclosures gainful

ge reporting

program website