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Surviving Clock Hour Programs

Surviving Clock Hour Programs. Missouri Association of Student Financial Aid Personnel Fall Conference Nov. 6, 2006 Presented by: Ruth Chrismore Student Aid Administrators. Clock Hour Programs. Maximizing your student’s eligibility for Title IV Developing Your Academic Year

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Surviving Clock Hour Programs

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  1. Surviving Clock Hour Programs Missouri Association of Student Financial Aid Personnel Fall Conference Nov. 6, 2006 Presented by: Ruth Chrismore Student Aid Administrators

  2. Clock Hour Programs • Maximizing your student’s eligibility for Title IV • Developing Your Academic Year • Maximizing Pell Eligibility • Maximizing Loan Eligibility • Calculations for Return to Title IV at Clock Hour Institutions • Transfer and Re-Entry Students

  3. Clock Hour Programs • Academic year must be one of the following for a clock hour program: • 900 clock hours AND • At least 26 weeks of instructional time

  4. Determining “Weeks” • Weeks of instructional time: • Begins on the first day of classes • Ends on the last day of classes • Definition of “week”: • Any period of 7 consecutive days in which at least one day of regularly scheduled instruction, examination, or at least one scheduled day of study for examination occurs • Does not include: periods of orientation, counseling, homework, or vacation

  5. Academic Calendar • In a clock hour program academic calendar is always: • Non-term • Students progress in their program based on coursework successfully completed and weeks of instructional time

  6. Payment Periods in Clock Hour Programs • Program of an academic year or less than an academic year: • Payment period one is the period of time in which the student completes half the number of clock hours and half the weeks of instructional time in the program • Payment period two is period of time in which student completes the remainder of the program in both clock hours and weeks of instructional time

  7. Payment Periods in Clock Hour Programs • Programs longer than an academic year and the remaining portion is less than an academic year: • The first payment period is the period of time in which a student completes the first half of the academic year • The 2nd payment period is the period of time in which a student completes the 2nd half of the academic year

  8. Payment Periods in Clock Hour Programs • For the remaining portion of the program: • If the remainder is equal to or shorter than one half of an academic year: • the payment period is the remaining portion of the program in both hours and weeks • If the remainder is more than one half of an academic year the payment period is: • the period of time for the student to complete the 1st half of the remaining portion of the program in both hours and weeks • payment period two is the period of time for the student to complete the 2nd half of the remaining portion of the program in both hours and weeks

  9. Determining an Academic Year • Example 1 – Program equal to an academic year: • Program is 900 clock hours taught over 30 weeks of instructional time : 1st Payment Period \ 2nd Payment Period 0 hrs.450 hrs.900 hrs. 15 weeks

  10. Determining An Academic Year • Example 2: Program is 1500 clock hours and 50 weeks and is considered a 1st year certificate program. Student begins program on 10/15/06 and is expected to complete 10/01/07. EFC is 0. • Academic year is the program: 1500 clock hours and 50 weeks: • 1st Payment Period \ 2nd Payment Period 0 hrs. 750 hrs. 1500 hrs. 25 wks. • Student receives Pell Grant of 4050 in two payments at 0 hours and 750 hours. In addition student (dependent) borrows Stafford Loan at 1st year level of 2625. • Total Title IV aid received = $6,675

  11. Determining An Academic Year Example 2: Program is 1500 clock hours and 50 weeks and is considered a 1st year certificate program. Student begins program on 10/15/06 and is expected to complete 10/1/07. EFC is 0. 1st academic year 900 clock hours in 30 weeks: 1st Payment Period \ 2nd Payment Period 0 hrs. 450 hrs. 900 hrs. 15 wks. Student receives maximum Pell – 4050 and 2625 Sub. Stafford loan. • 2nd academic year 600 clock hours in 20 weeks: 3rd Payment Period \ 4th Payment Period 901 hrs. 1201 hrs. 1500 hrs. 10 wks. Student receives pro-rated Pell award from 07-08 of 2700 and pro-rated Sub Stafford loan of $2,345.

  12. Determining An Academic Year • Student crosses over 7/1 so may receive additional pro-rated Pell award from 07-08 award year • In a borrower based academic year, upon completion of the 1st academic year and 2nd academic year is less than an academic year Stafford loan is pro-rated .67 X 3500 = 2345. • Total aid received: $6675 Yr. 1 5045 Yr. 2 $11,720 Total Aid

  13. Pell Grant Crossover Periods • A crossover payment period is a payment period that begins in the previous award year and ends in the new award, crossing over July 1. • School may assign a crossover payment period to either award year on a student-by-student basis • School must have a valid SAR/ISIR for any award year for which a disbursement is made

  14. Pell Grant Crossover Periods • In determining which award year to use for crossover payment periods consider • Student’s remaining eligibility in earliest award year • Student’s EFC in both award years • The date the Pell disbursement can be made – the earliest date for any Pell payment is 7/01 of the award year • If more than six months of a payment period are in a given award year, the payment must be from that award year

  15. Pell Grant Crossover Periods • Schools must use same award year EFC to determine eligibility for FWS, FSEOG, DL and FFEL crossover periods • School must have a valid SAR/ISIR from whichever year the award year is made from

  16. Loan Cross Over Periods • Crossover periods for loans • Because loans are calculated on a loan period/enrollment period basis and subject to annual limit: • Schools may choose to use the needs analysis for either award year for a loan period that crosses over July 1. • Disbursement may be made prior to July 1 • School must have valid SAR/ISIR with official EFC for award year selected • School may choose award year EFC on student-by-student basis

  17. Basis for R2T4 in Clock Hour Programs • Non-Term Clock Hour Programs: • Payment period or period of enrollment • Consistent for all students in a program • May use different period for transfer-in or re-entry students from those who completed all hours in the program at that school

  18. PERIOD USED IN CALCULATION – (Cont’d) • May change for new students as they begin class (after including in consumer information, etc) • May change for current students after changing • Consumer information • Written policies and procedures • Enrollment agreements

  19. PAYMENT PERIOD VS. ENROLLMENT PERIOD EXAMPLE 1 – Clock hour program Length of program – 900 hours Student withdraws at 300 scheduled hours 300/450 = .67 – Student completed 67% of payment period. Financial aid: ProgramPayment Period Pell 4000 2000 FFEL 2000 1000 Aid disbursed or “could have been disbursed” prior to withdrawal Pell 2000 FFEL 1000

  20. PAYMENT PERIOD VS. ENROLLMENT PERIOD EXAMPLE 1 – Clock hour program (Cont’d) Payment Period Basis Disbursed aid 3000 Aid that could have been disbursed 0 Total 3000 Amount earned (100%) 3000 Amount to be returned 0 TOTAL EARNED AID: $3000

  21. PAYMENT PERIOD VS. ENROLLMENT PERIOD EXAMPLE 1 – Clock hour program (Cont’d) 300 scheduled hours/900 program hours = 33.33% Student completed 33% of the program Enrollment Period Basis Disbursed aid 3000 Aid that could have been disbursed 3000 Total 6000 Amount earned (33.33%) 2000 Amount to be returned 1000 TOTAL EARNED AID: $2000

  22. PAYMENT PERIOD VS. ENROLLMENT PERIOD EXAMPLE 2 – Clock hour program Length of program – 900 hours Student withdraws in payment period 2 at 600 scheduled hours Financial aid: ProgramPayment Period Pell 4000 2000 FFEL 2000 1000 Aid disbursed (all eligible aid disbursed) Pell 4000 FFEL 2000

  23. PAYMENT PERIOD VS. ENROLLMENT PERIOD EXAMPLE 2 – Clock hour program Payment Period Basis Disbursed aid (payment period 2) 3000 Aid that could have been disbursed 0 Total 3000 Amount earned 150/450 (33.33%) 1000 Amount to be returned 2000 TOTAL EARNED AID: $4000 $3000 1st payment period - $1000 2nd payment period

  24. PAYMENT PERIOD VS. ENROLLMENT PERIOD EXAMPLE 2 – Clock hour program Period of Enrollment Basis: Disbursed aid 6000 (Payment period 1 and 2) Aid that could have been disbursed 0 Total 6000 Amount earned 600/900 = .67 (100%) 6000 Amount to be returned 0 TOTAL STUDENT ELIGIBILITY 6000 $3000 1st payment period + $3000 2nd payment period

  25. Transfer and Re-Entry Students • Re-entry students: • Re-entry within 180 days of withdrawal: • Returns into the same payment period as when withdrawal took place

  26. Re-Entry Students Within 180 Days • Re-entry within 180 days of withdrawal date: • Treated as though attendance did not cease for Title IV purposes • Costs are those costs for the original payment period before the student withdrew

  27. Re-Entry Students Within 180 Days • Re-disburse aid returned under R2T4 • Disburse any aid student was eligible for that was not disbursed at time student withdrew • Cancel any overpayments assessed as a result of the prior withdrawal

  28. Re-Entry Within 180 Days • Example: 900 hour academic year; calculations are based on payment period. Student was scheduled to complete 225 hours at date of W/D. Aid disbursed was: • $1500 Pell Grant • 500 FSEOG 500 Stafford Loan Total $2,500 Aid Disbursed After R2T4 School returned $500 to Stafford Loan Program After grant protection applied student incurred $375 overpayment of which $100 was repaid to the school and student made satisfactory arrangements with school to repay balance.

  29. Re-Entry Within 180 Days • Upon student’s return within 180 days of withdrawal: • Student returns to the same payment period as of date of withdrawal. School: • requests that lender re-disburse $500 Stafford loan returned under R2T4 • Cancels $275 grant overpayment reported to NSLDS • Repays student the $100 Pell that was repaid to school by student • Reschedules subsequent disbursements

  30. Re-Entry After 180 Days and Transfer Students • Re-Entry 180 days after withdrawal date and transfer students given credit for previous hours completed in program of study: • Student begins a new payment period • Hours remaining in the program treated as student’s entire program • Number and length of remaining payment periods determined by remaining length of program

  31. Transfer and Re-Entry Students • Example: Student transfers to your Cosmetology program and was given credit for 650 hours of previous study at another institution. Academic year is 900 hours and program is 1500 hours. • This student’s program is 850 hours at your school (1500 – 650 = 850)

  32. Transfer and Re-Entry Students • Example Cont’d: • Student is paid in two payment periods: 425 hours/payment period • Pell award is pro-rated at 850/900 (.95) • Annual loan limit is pro-rated at 850/900 (.95)

  33. Transfer Students • For transfer students: • School must check NSLDS History to determine • Remaining Pell eligibility so student is not paid more than annual scheduled award • Reduce Pell award if student has been paid a % of scheduled award at previous school • Remaining loan eligibility • 30 weeks must have elapsed since most previous loan period begin date AND • Loan period end date on most previous loan must be prior to new loan period start date at your school • Reduce annual loan limit by amount borrowed at the previous school • Add To NSLDS Transfer Monitoring if Pell or Loans awarded in current award year

  34. Transfer Students • Example: Student transfers to your school and is enrolled in a 1st year certificate program beginning August 15, 2006 and has previously attended another institution. Student has 0 EFC and has a 4050 scheduled award for 06-07. She received $1,012 at the previous school from 06-07 Pell award year. In addition student borrowed $875 Sub and 1000 Unsub loan for the period 7/1/06 to 4/25/07. Your loan period is 8/15/06 – 5/25/07.

  35. Transfer Students • Remaining Pell Eligibility: • 75% of scheduled award: 4050 – 1012 = 3038 • Payment period 1: 2025 • Payment period 2: 1013 • Remaining Loan Eligibility for loan period 8/15/06 – 5/25/07: • 2625 – 875 = $1,750 remaining Sub eligibility • 4000 – 1000 = $3,000 remaining Unsub eligibility

  36. Questions • ????????????????????? • Ruth Chrismore • Student Aid Administrators • 4495 Cove Rd. • Osage Beach, MO • 573-302-7400

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