Addressing Unofficial Withdrawals and Federal Financial Aid Compliance February 2, 2010

1. Addressing UnofficialWithdrawals and Federal Financial Aid ComplianceFebruary 2, 2010 W. Michael George University of Alabama

2. Background of Federal Financial Aid Rules for Withdrawals • Basic expectations of the U.S. Department of Education • Documented versus undocumented withdrawal from all courses • Comparison with academic rules in place on campuses • Relationship to fee refund/forfeiture issues

3. Basic Federal Expectations for Enrollment of Financial Aid Recipients • Attendance • Student must actually attend to be eligible for federal student aid. • Generally, the institution is liable if the student fails to attend. • Completion • Student must complete payment period for which aid was awarded, or • The institution must return a prorated amount of the aid if withdrawal occurs prior to completion of 60% of the term.

4. Documented Versus Undocumented Withdrawal from All Courses • Return of Title IV Aid (R2T4) requires • Either: • Official withdrawal date<OR> • Unofficial withdrawal date <AND> • Date of last attendance

5. Comparison with Academic Rules in Place on Campuses • No federal requirement that rules fit together • Student service, clear information suggest best if the rules make sense • May have fiscal impact • Rules are often a stated faculty policy

6. Relationship to Fee Refund/Forfeiture Rules • If possible, similar rules are helpful • Calculations are already complex • Academic advisors, faculty, and others engage in advising student about academic withdrawal, so simplicity helps with compliance

7. Changes from Prior Rules • Compared to environment prior to Return of Title IV Aid rules, changes have resulted from • Findings and penalties in federal audits • Challenges presented by the new expectations of monitoring attendance

8. Challenges Presented by New Expectations • Monitoring attendance at large campuses • Applying Return of Title IV (R2T4) rules • In timely fashion • Unifying all coursework for students with unofficial withdrawals

9. Pros and Cons of Institutional Options to Federal Compliance • Taking attendance on a regular basis • Monitoring enrollment during the course of a term • Monitoring enrollment after the term is completed • Determinants in choosing among these options

10. Taking attendance on a regular basis • Pros • Most straightforward way to meet requirements • Allows feedback from faculty about true attendance patterns • Cons • Difficult to implement if not already part of the faculty culture • Extensive data gathering and comparison across students’ courses

11. Monitoring enrollment during the course of a term • Pros • One-time reporting is simpler for faculty • Provides feedback in time for changing aid prior to next term • Cons • Unless part of existing mid-term grading, adds a reporting requirement for faculty • Adds Registrar and Financial Aid staff pressure for quick turn around that may conflict with other priorities

12. Monitoring enrollment after the term is completed • Pros • Less subject to change • Fits with standard faculty reporting • Cons • Occurs after enrollment for subsequent term • Billing may hold up enrollment • No time for change in student behavior

13. Determinants in choosing among these options • Academic Calendar • Length of term may be most significant • Size of Institution • Prior procedures related to campus retention efforts

14. Role of Faculty in Unofficial Withdrawal Process • Must keep track of students who stop attending, for example • Last evidence of work submitted • Last exam • Non attendance at labs or small group sessions • Different approaches may yield different assessment of lack of student attendance • Incomplete • Failure • Dropped out

15. Developing and Deciding on a Proposed Solution • Collaborate

16. Implemethe Solution • Implemented Spring 2009 • Discussion with faculty groups • E-mail to faculty about new grade • Alignment with web-based grading • Description on web grade roster • E-mail reminder prior to grading period

17. New Grades: NA and DO • Definition • A “NA” grade denotes that the student has never attended any meeting time for the course • A “DO” grade denote that the student attended at least one or more meeting times for the course

18. NA-DO Grade • Rationale: Creation and reporting of these new grades and the date the student stopped attending is the “remedy” chosen by the university to avoid a current or future multi-million $ fine being levied against UA by the Federal Government because we are not documenting the last recorded date of class attendance. The alternative was keeping daily attendance. This documentation requirement is mandated by Federal Student Financial Aid Regulations.

19. Managing the Solution • Actions of the Accounts Receivable • Actions of the Office of the University Registrar

20. Specific actions in the Accounts Receivable Office in response to the process • Divided students into 4 categories: • Those who received Title IV aid, and have ALL NA/DO grades • Treated like total withdrawal students • Aid evaluated for potential return of Title IV funds • Accounts Receivable conducts this analysis

21. Specific actions in the Accounts Receivable Office in response to the process (con’t) • Those who received Title IV aid, and have one or more NA/DO grades and otherwise all dropped courses • Aid evaluated for potential return of Title IV funds • Accounts Receivable conducts this analysis

22. Specific actions in the Accounts Receivable Office • Students who received Title IV aid, and have a combination of NA/DO grades and successful marks • Aid evaluated for potential return of Title IV funds • Accounts Receivable conducts this analysis • Students who received Title IV aid, and have ALL “unsuccessful” marks • “Unsuccessful” marks: missing grades • Additional information is needed from instructors • With additional information, review for any potential return of Title IV aid • Accounts Receivable conducts this analysis

23. Specific actions of the University Registrar • Weekly Reports

24. Contact Information Michael George University Registrar University of Alabama michael.george@ua.edu 205-348-2857