A Comprehensive Guide to Higher Education Act Compliance

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1 E A Comprehensive Guide to Higher Education Act Compliance M PL What to Do and How to Do It SA Copyright 2015 PaperClip Communications 125 Paterson Avenue, Little Falls, NJ Ph: F: Written by Claire K. Hall, J.D., Director of Student Conduct and Special Advisor to Student Services, Johnson & Wales University Edited by Julie Phillips Designed by Amy Oliveira Prepared for our institution by PaperClip Communications. Reproduced or retransmitted under license by PaperClip Communications. License expires one year from date of purchase. PaperClip Communications and its contributors do NOT provide legal advice, and this document should be considered general information only. The answers to legal questions generally hinge upon the specific facts and circumstances. Individuals with specific legal questions at a specific institution should contact that institution s legal counsel.

2 Topics Covered Overview and Scope of the Changing Higher Education Act Developing an Effective Compliance Strategy How to Proactively Complete an Internal Audit to Prepare for a Department of Education Program Review Communicating HEA Compliance Expectations to the University Community Obligations Connected to the Written Program Participation Agreement Managing Disclosure and Reporting Requirements Imposed by the HEA Understanding and Implementing Compliance Obligations Related to: Eligibility Requirements Financial Responsibility Administrative Capability Institutional Policies, Procedures and Process Student Consumer Information Campus Security Other HEA Requirements Practical tools, including: Explanations of the legal obligations under the HEA, as amended and reauthorized Compliance checklists Best practice tips Federal resources Activities and worksheets Complying with the HEA, as Amended This binder will serve as a compliance tool for schools receiving Title IV funds under the HEA, and also help schools prepare for a Department of Education (DOE) Program Review.

3 Program Participation Agreement (PPA) All colleges and universities that receive Title IV funding, such as Federal Pell Grants, Federal Perkins Loans, Federal Direct Loans, Federal Work Study, etc., are required to enter into a Program Participation Agreement (PPA) with the DOE. The school s president, chief executive officer or chancellor, and also a representative of the Secretary of Education, must sign the PPA. The PPA must be re-signed every six years. The PPA is a contractual document that requires colleges and universities to comply with numerous policies, laws and regulations. Most PPA agreements are the same for all institutions; however, the PPA may list additional requirements that are specific to each individual school, so it is important that each school be familiar with the contents of its own PPA. An institution that fails to comply with the PPA terms and conditions may not be eligible to continue to receive Title IV aid. Some of the legal requirements that are the same in every PPA are a school s obligation to comply with Title VI of the Civil Rights Act of 1964, Title IX of the Educational Amendments of 1972, the Family Educational Rights and Privacy Act of 1974, Section 504 of the Rehabilitation Act of 1973 and the Age Discrimination Act of Title VI of the Civil Rights Act of 1964: Title VI prohibits discrimination on the basis of race, color, or national origin in any programs or activities receiving federal funding. Title IX of the Educational Amendments of 1972: Title IX prohibits discrimination based on sex, including sexual harassment and sexual assault. Any school receiving federal aid must have policies in place to prevent violations of Title IX. Family Educational Rights and Privacy Act of 1974 (FERPA): FERPA is a federal privacy law that protects student education records. Schools participating in any federal aid programs of the DOE must take necessary steps to prevent the unauthorized disclosure of applicable student records. Section 504 of the Rehabilitation Act of 1973: Section 504 protects qualified individuals from discrimination based on actual or perceived disabilities. Section 504 applies to all schools that receive financial assistance from any federal department or agency, including the DOE. Age Discrimination Act of 1975: The Age Discrimination Act of 1975 protects individuals from discrimination based on age in any programs or activities that receive federal funding. Specifically, no person can be excluded from participation, denied benefits or be subject to discrimination based on their age.

4 Program Participation Agreement (PPA) (continued) General Requirements The general requirements set forth in the PPA can be found in 34 CFR In addition to the general requirements, schools participating in Federal Pell Grant, Federal Direct Student Loan, Federal Work Study, Federal Perkins Loan and Federal supplemental Education Opportunity Grant programs should also be familiar with requirements set forth in the general provisions of 34 CFR 668, 34 CFR Part 690, 34 CFR Part 685 and 34 CFR Part Many of the requirements set forth in the PPA are the same requirements addressed in this binder related to Student Consumer Information, Administrative Capability, Eligibility, Campus Security, etc. It is imperative, however, that a school read and be familiar with the requirements of its own PPA to ensure compliance. Some of the other general requirements of the PPA include a school s commitment to: Use funds solely for the purposes specified by the applicable program Only use Federal Student Aid (FSA) program funds received in advance, if applicable, to meet immediate FSA program needs Not charge any fees for the processing or handling of loans, loan applications or origination activities Implement policies and procedures to efficiently manage FSA funds and be able to show administrative capability and financial responsibility Not penalize a student who is unable to pay due to FSA program compliance obligations or delayed loan disbursements caused by the school Comply with program integrity requirements Comply with athletic aid requirements, if applicable Properly administer funds and be financially accountable for any improperly administered funds Comply with rules related to lobbying, drug prevention, debarment, suspension, eligibility and voluntary exclusion Properly disseminate information to enrolled and prospective students as required by the DOE Support data collection efforts and comply with program reviews as required by the DOE

5 Program Participation Agreement (PPA) (continued) Recertification If a school that is currently certified submits its A school must recertify its PPA materially complete application to the Department every six years. Specifically, a school no later than 90 calendar days before its PPA must apply to have its PPA extended expires, its PPA remains valid, and its eligibility and the recertification process should to participate in the FSA programs continues until start no less than six months prior to the its application is either approved or not approved. This is true even if the Department does not expiration date listed on the PPA. complete its evaluation of the application before The DOE must receive the school s the PPA s expiration date. (For example, if a materially complete application for school s PPA expires on June 30 and it submits its application by March 31, the school remains recertification no later than 90 calendar certified during the Department s review period days prior to the expiration of its PPA. even if the review period extends beyond June An institution that fails to do this risks 30). ( Federal Student Aid Handbook losing its eligibility to participate Volume 2, Chapter 5, page 2-83) in FSA programs. In fact, the FSA Handbook produced by Federal Student Aid (ifap.ed.gov) specifically states [i]f the school s application is not received at least 90 days before the PPA expires or is not materially complete, the school s PPA will expire on the scheduled expiration date and the FSA program funding will cease. ( Federal Student Aid Handbook Volume 2, Chapter 5, page 2-83) Expiration: In addition to failing to properly recertify, a school s PPA will expire if: The school has an ownership change that results in a change in control The school permanently closes or ceases offering educational programs The school becomes ineligible (see Eligibility section of this binder) The school s provisional certification, if applicable, is revoked A program participation agreement conditions the initial and continued participation of an eligible institution in any Title IV, HEA program upon compliance with the provisions of this part, the individual program regulations, and any additional conditions specified in the program participation agreement that the Secretary requires the institution to meet. 34 CFR (a)(1)

6 Program Participation Agreement (PPA) (continued) Updating PPA Application Information Updating the DOE of substantive institutional changes to a school s PPA application is critical. Changes such as new ownership and control, new location, name changes, accreditation, etc. should be reported to the DOE. Changes and updates to the PPA application should be made using the E-App tool found at Certain substantive institutional changes will require written approval from the DOE before the school can distribute FSA funds. Applications for written approval must be submitted to the DOE via the E-App within 10 calendar days of the change.

7 Program Participation Agreement (PPA) (continued) Changes to the PPA Changes requiring written approval include changes related to: Accrediting agency State authorization Institutional structure Level of educational programs Accredited and licensed non-degree programs Short-term programs FSA programs Ownership or type of ownership Accredited or licensed location (in certain instances) Certain substantive institutional changes do not require written approval, but must still be reported. These include changes to: Name of school Name of CEO, president or chancellor Name of chief fiscal or financial officer Individual designated as lead program administrator for FSA programs Governance of public institutions Decrease in program offerings Clock hours or credit hours Address Closure of branch campus or additional location Accredited and licensed locations Third-party servicers of FSA program funds

8 Student Consumer Information As part of the HEA, as amended, institutions of higher education that Prospective and current students, parents, receive federal funding must comply with researchers, and policymakers rely heavily on a multitude of disclosure and reporting the Internet to obtain information about higher requirements. The rationale behind education institutions. However, the information that institutions are required to disclose by requiring specific disclosure and reporting the HEA may be difficult to find, compare, is to ensure that enrolled and prospective and use. (National Postsecondary Education students can find information about Cooperative. (2009) Information Required to Be schools in an easy, accessible manner. Disclosed Under the Higher Education Act of 1965: Suggestions for Dissemination (Updated) The DOE has expressed concern that (NPEC v2), Page 3, prepared by Carol schools do not generally do a good job Fuller and Carlo Salerno, Coffey Consulting. collecting and distributing information to Washington, DC.) its consumers and, as such, the disclosure and reporting requirements were implemented to promote accountability. Schools must be aware that simply posting information on a website does not satisfy all disclosure and reporting requirements. Some information must be delivered directly to specified individuals or upon request. For information that may be posted on the website, it is best practice if consumers can find the information within three clicks. The Three-Click Rule: Post information on a webpage so that it It is also recommended that schools have a single web can be found in three clicks or less. page where all consumer information is located and a specific person who is dedicated to assist the consumer with finding required information. Failure to comply with the disclosure and reporting requirements may result in fines, suspension or termination of federal funding. For more information on consumer information, schools should review 34 CFR Suggestions for disseminating HEA-required information: The National Postsecondary Education Cooperative (NPEC) issued Information Required to Be Disclosed Under the Higher Education Act of 1965: Suggestions for Dissemination (NPEC ). This publication is available at Note: NPEC was established by the National Center for Education Statistics in 1995 as a voluntary organization comprising federal agencies, postsecondary schools, associations, and others with an interest in postsecondary education data collection. The information and opinions in NPEC publications do not necessarily represent the policy or views of the US Department of Education. ( Federal Student Aid Handbook Volume 2, Chapter 6, page 2-101)

9 Student Consumer Information (continued) Suggested Titles for HEA Student Consumer Information on Institutional Web Portal Page Notice Of Availability Of Institutional And Financial Aid Information Contact Information For Assistance In Obtaining Institutional Or Financial Aid Information General Institutional Information Privacy Of Student Records-Family Educational Rights And Privacy Act (FERPA) Facilities And Services For Students With Disabilities Student Diversity Price Of Attendance Net Price Calculator Refund Policy And Requirements For Withdrawal And Return Of Federal Financial Aid Textbook Information Educational Program Instructional Facilities Faculty Transfer Of Credit Policies And Articulation Agreements Accreditation, Approval, And Licensure Of Institution And Programs Copyright Infringement-Policies And Sanctions Computer Use And File Sharing Student Activities Career And Job Placement Services Teacher Preparation Program Report Student Financial Assistance Assistance Available From Federal, State, Local, And Institutional Programs Federal Student Financial Aid Penalties For Drug Law Violations Student Loan Information»» Initial Loan Counseling For Student Borrowers»» Exit Counseling For Student Borrowers»» Institutional Code Of Conduct For Educational Loans

10 Student Consumer Information (continued)»» Preferred Lender List»» Preferred Lender Arrangements Health And Safety Drug And Alcohol Abuse Prevention Program Vaccination Policies Campus Security Policies, Crime Statistics And Crime Log Fire Safety Policies, Fire Statistics And Fire Log (On-Campus Housing Facilities) Student Outcomes Retention Rate Graduation Rates (Student Right-To-Know Act) Transfer Out Rates (Student Right-To-Know Act) Graduation Rates For Students Receiving Athletically Related Student Aid (Student Right- To-Know Act) Transfer-Out Rates For Students Receiving Athletically Related Student Aid (Student Right-To-Know Act) Job Placement For Graduates Job Placement Rates For Graduates Graduate And Professional Education Placement For Graduates Intercollegiate Athletic Program Participation Rates And Financial Support Data (Equity In Athletics Disclosure Act) Voter Registration Source: National Postsecondary Education Cooperative. (2009) Information Required to Be Disclosed Under the Higher Education Act of 1965: Suggestions for Dissemination (Updated) (NPEC v2), Page 8, prepared by Carol Fuller and Carlo Salerno, Coffey Consulting. Washington, DC.

11 Overview of the Higher Education Act The Higher Education Act of 1965 (HEA) was signed into law by President As provided by Section 498 of the Lyndon Johnson on November 8, Higher Education Act of 1965, as amended The HEA governs the administration of (HEA), the Secretary of Education federal student aid programs. The Act (Secretary) determines whether institutions seeking to participate, or participating, in was created for the purpose of solidifying the programs authorized pursuant to Title and expanding the federal government s IV of the HEA (Title IV, HEA programs), involvement in higher education, 20 U.S.C. Sec. 1070, et seq., meet, or strengthening educational resources for continue to meet, the institutional eligibility, colleges and universities, and providing financial responsibility, and administrative financial assistance for students (Public capability requirements for participation Law , November 8, 1965). in the Title IV, HEA programs (Program Review Guide for Institutions 2009: Federal To meet the changing needs within Student Aid Programs). higher education, the HEA has been reauthorized nine times since Reauthorization gives Congress the ability to propose changes, revisions and additions to existing laws, with the intent of keeping laws from becoming stale and antiquated. Although the expectation is that the HEA will be reauthorized approximately every five to six years, the reality is that Congress does not always successfully meet that timeline. The most recent reauthorization, the Higher Education Opportunity Act (HEOA), occurred in August of It was set to expire in 2013, but has been extended through There is hope among the higher education community that the next reauthorization will simplify the law. Senator Lamar Alexander has indicated that he intends to have a rewrite of the HEA completed by the end of 2015, which will loosen some of the strict regulations and red tape currently being placed on institutions of higher education. Others, however, like Senator Patty Murray, contend that the rules imposed by the HEA are necessary to hold institutions accountable and, as such, the loosening of regulations too much is not a good idea. Bipartisan working groups have been created to address the issue. For now, however, schools must comply with the HEA, as amended, including all obligations imposed by the HEOA. Handout from A Comprehensive Guide to Binder and CD

12 Drug-Free Schools and Campuses: Questions to Ask at Your Institution Pursuant to the HEA, as amended, schools that receive Title IV funds must provide information to every enrolled student regarding the prevention of drug and alcohol abuse. The institution must also undertake a biennial review of its prevention program(s) and activities to determine effectiveness, implement changes if needed and ensure that disciplinary sanctions are consistently enforced. The following questions will assist your institution in the review of its prevention programs and activities (34 CFR 86). Does your institution have an Alcohol and Other Drug (AOD) program? What are the goals of the AOD program? What are the policies regarding alcohol or illicit drugs on your campus? How are they publicized? Enforced? Do they clearly prohibit, at a minimum, the unlawful possession, use, or distribution of illicit drugs and alcohol on campus or as part of any program or activity? What are the applicable legal sanctions under local, State, or Federal law for the unlawful possession or distribution of illicit drugs and alcohol? What types of educational programs are offered to students regarding alcohol and illicit drugs? Do they address the health risks associated with the use of illicit drugs and the abuse of alcohol? Are there resources for students who are struggling with alcohol or illicit drug use on or near your campus (counseling, treatment, rehabilitation, re-entry)? What type of alcohol-free events, activities and programs does your institution provide for its students? Do students have access to alcohol on or near campus? Is alcohol marketed or promoted on or near campus? What is the normative environment at your institution regarding alcohol and illicit drugs? Does your campus promote health and wellness days? Handout from A Comprehensive Guide to Binder and CD

13 A Department of Education Program Review If the DOE decides to undertake a Program Review of your institution, then you will likely receive notice of the review approximately two to four weeks ahead of time. Shorter notice is possible, however, in certain situations sometimes even the DAY OF. Ways to Get a Surprise Visit from the Department of Education (DOE) The DOE receives complaints from the Department of Justice, FBI or other law enforcement agencies The DOE receives serious credible complaints from students and/or parents Complaints are made to the Office of the Inspector General Negative reports are received from state agencies or accrediting agencies The DOE sees adverse articles or stories in the media Information is reported to the DOE from former or current employees The DOE learns of possible fraud or abuse Other egregious acts of non-compliance Handout from A Comprehensive Guide to Binder and CD

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