PREFERRED COLLEGE OF NURSING FEDERAL STUDENT AID POLICIES & PROCEDURES MANUAL INTRODUCTION

Transcription

1 PREFERRED COLLEGE OF NURSING FEDERAL STUDENT AID POLICIES & PROCEDURES MANUAL INTRODUCTION Federal regulations mandate that institutions have written policies and procedures for the administration of Title IV student assistance programs. This Federal Student Aid Policies and Procedures Manual is designed to document policies and procedures that are required by federal regulations as they pertain to the administration of the Title IV student assistance programs. The contents featured in this guide include the minimum general statutory and regulatory requirements. This Manual: 1. Provides the financial aid staff with current policies and procedure surrounding federal, state, and institutional programs. 2. Provides each staff member with the general responsibilities of the total staff and the office's relationship to other offices of the College. 3. Provides each staff member with general office procedures ensuring that similar situations would be handled consistently. 4. Provides quick reference to various programs, problems, forms, rules, and regulations. 5. Provides a clear understanding of policy, authority, and responsibility in matters relating to operational practices. Preferred College of Nursing s goal is to provide financial means by which a student can continue his/her education. The financial aid programs at PCN are administered according to the following principles: 1. The primary responsibility for financing education lies with the student and his family. 2. When the total resources they can provide do not meet expenses, PCN will do as much as possible to assist so that the student will not be denied an education. 3. Interested individuals will be made aware throughout the year of financial aid opportunities. 4. A financial aid package will be developed and offered to the student based on individual need and circumstances, but without regard to age, sex, race, color, religion, national origin or handicap. 5. Planning/counseling sessions are important and help students plan for the most efficient use of financial aid and the student s own resources for education. 6. The Financial Aid Office operates within federal and state guidelines 1

2 INSTITUTIONAL OVERVIEW Name of Institution: PREFERRED COLLEGE OF NURSING OPE ID: Federal School Code: School s Brief History, Mission & Objectives: Preferred College of Nursing (PCN) is a profit institution founded in Formerly known as Preferred Training Center with Certified Nursing Assistant and Home Health Aide as its first courses offered, PCN has now organized a variety of schedule of classes for Vocational Nursing Program, Medical Assisting Program, Pharmacy Technician Program, and Continuing Education Programs and Certification Courses for RN and LVN. We aim to participate in the process of developing self-worthiness, thus enhancing the quality of life, by providing superior level of training in the health care field. As we understand the value of education and training in a responsible and productive society, we commit to participate in the process of developing selfworthiness to students who are seeking career opportunities in the health care field. We aim to provide students with a solid foundation necessary to climb the health care career ladder through the implementation of our curriculum that embodies the following: Participation that every student will have his/her chances in participating in class activities with emphases in the importance of understanding individual opinions, questions, and the needs for communication; Collaboration - by allowing moments of groups discussions and teamwork acknowledging therefore the individual differences in beliefs, activities and needs; and Return Demonstration by providing everyone the chance to verbalize, role play and/or problem-solve a situation. We, in Preferred College of Nursing believe that health is a dynamic state which we perceive to be a continuum of wellness/illness and that health care today emphasizes wellness. This focus is an integral part of our philosophy: to provide 2

3 students with the knowledge and skills they need to become competent, critical thinkers, and to attain the sensitivity needed to become caring health care provider. The goal of health care education at PCN is to prepare today s students to meet the challenges of tomorrow. This preparation must extend beyond the mastery of facts and skills. Health care provider must be able to combine competence with caring and critical thinking. They must address both the physiologic and the psychological needs of patients. Professional health care practice continues to evolve and adapt to society s changing health priorities. Nursing education must reflect these changes. The college believes in the following ideals: Person is a human being, an individual with physical, mental, emotional, social, spiritual and cultural attributes. A person can perceive, has concept of self and body image. A person is capable of developing, growing, and learning inside oneself when given opportunities within a certain amount of time and space. Society is composed of individuals or persons, male, and female, with varying needs, ages, cultures, attributes and capabilities for learning and coping. When recipients of knowledge and experiences, individuals can further themselves in functioning and productivity so as to sustain quality living. Environment is a physical location, where the person is a social system, has organization, power, authority, status, and control. This person can make decisions within the setup regarding self-learning process and its success. Health refers to wellness or illness. It is also the ability to function in dynamic life experiences such as learning and social activities. Learning - is a process of role transaction which involves a certain amount of stress. It includes coping, interaction, and communication while acquiring and applying knowledge and skills that may be applicable to future endeavors. Learning can take place in a given time and within an environment conducive to acquisition of knowledge. Education is a process of providing, acquiring, and utilizing knowledge and skills, so as to meet the needs of the learner s intellect, emotion, and social attributes with the end-result of achieving a productive and meaningful career. Nursing is the art and science of assisting clients in the prevention of illness, maintenance of health, and promotion to recovery during differing needs of health conditions. Health Care Delivery Systems - continue to advance with technological changes to improve service to clients in an ever-changing world and with the goal of promoting the quality of life. 3

4 An educational institution should be able to provide services comparable to the ever-changing aspects of healthcare and society. Preferred College of Nursing expects to advance further in the field of healthcare, so that quality education may be provided to the student population it serves. The Philosophy of Student Financial Aid at PCN: The philosophy of student assistance began and continues to provide access and choices to students, who without such assistance would not be able to attend an institution of higher learning. PCN believes that higher education is a privilege to be enjoyed by those who can afford to pay the cost, as well as those with limited financial resources. The fundamental purpose of the PCN student financial aid program is to assist in making it financially attainable for students to achieve their educational goals. Principles of Financial Aid Administration: The school s Financial Aid program is based on sound financial aid principles in keeping with institutional philosophy and purpose. The primary purpose of PCN Financial Aid is to provide financial assistance to students who can benefit from a higher education but who may not be able to attend college without such assistance. The following are the principles of Financial Aid Administration: 1. The school provides schools, parents and students with factual information about its aid opportunities, programs and practices. 2. The family is expected to make a maximum effort to assist the student with college expenses. Financial aid from the school and other sources are to supplement financial support from the family (taking into account the income, number of dependents, number in college and other relevant information). Students themselves are expected to contribute from their own earnings. 3. Financial aid is offered only after determination that the resources of the family are insufficient to meet the student's educational expenses. 4. The total amount of federal or state financial aid offered to a student by the school and other sources is not to exceed the student's financial need. 5. Financial Aid administrators may use professional judgment on a case by case basis to complement need assessments in order to arrive at the best package to meet the needs of students. 6. The selection of students to receive financial aid is made without regard to age, sex, race, color, religion, national origin or handicap. 4

5 ADMINISTRATIVE CAPABILITY Administrative Organization of the Financial Aid Office: The school established Business Office and Financial Aid Office with two separate functions. These two functions are performed by individuals who are not members of the same family and who do not together exercise substantial control over the school. This system separates the functions of authorizing payment and disbursing or delivering funds so that no one person or office exercises both functions for any student receiving FSA funds. Purpose of the Financial Aid Office: 1. To provide professional financial counseling to students and parents concerning meeting the costs of education 2. To administer Title IV Aid programs according to the federal, state, and institution s policies. 3. To maintain institutional records of assistance programs and students assisted. The Role of the Financial Aid Office: 1. To assist the Admission's Office in counseling students about their access to education by applying for financial aid. 2. To provide effective communication with other offices in order to process applications and disburse funds on a timely basis. 3. To verify data reported by parents and /or students. 4. To administer the Federal Title IV programs in accordance to the regulations. 5. To award financial aid funds in an equitable manner. 6. To monitor the academic progress of aid recipients to make certain their progress is satisfactory. 7. To publicize the availability of financial aid. Duties & Responsibilities of a Financial Aid Administrator: The primary responsibilities of the Financial Aid Administrator are to assemble and maintain student aid records, assess eligibility of applicants for aid, authorize aid, and complete federally mandated reports and design and implement systems to accomplish these tasks. Specific responsibilities include but not limited to: 1. Maintaining student financial aid records/files 2. Authorizing and processing Pell awards and payments 3. Verifying application data on selected applicants 4. Calculating student loan and grant awards 5. Collecting progress reports for satisfactory progress 5

6 6. Calculating return of funds or overpayments when student withdraws 7. Maintaining up-to-date knowledge of relevant federal regulations 8. Coordinating fiscal matters with the Business Manager, including cash requests, cash accountability and cash disbursements 9. Coordinating with the Chief Academic Officer in revising Student Consumer Information and Policy & Procedures Manual 10. Preparing Federal Title IV Reports 11. Other general office duties The Financial Aid Administrator reserves the right on behalf of the school to review and cancel an award any time because of changes in financial or academic status, or change of academic program. Calendar of Financial Aid Activities: The Financial Aid Administrator attends monthly Financial Aid/Business Office Staff meetings, Administrative & Faculty/Staff Meeting meetings, U.S. Dept. of Education Workshops-Seminars, and Financial Aid Administrator Training Workshops. Financial Aid Records Management: Financial aid records are located in the main Financial Aid office. The Financial Aid Office maintains a file folder of records for each student receiving financial assistance. Folders are held in the Financial Aid Office for two years and sent to retention for at least three additional years. All financial aid folders are retained for five years after submission of the FISAP report. Any records involved in any claim or expenditure which has been questioned by federal audit are retained until the question is resolved. All records and conversations between an aid applicant, his/her family and the staff of the Financial Aid Office are confidential and entitled to the protection ordinarily given a counseling relationship. PCN assures the confidentiality of student educational records in accordance with the Family Educational Rights and Privacy Act of As a rule, all currently enrolled and former students have the right to review their records to determine their content and accuracy. A student who wishes to obtain access to his/her financial aid record must schedule an appointment with the Financial Aid Administrator. A student must submit a written release for information to be given to any person or agency. Financial Aid Office Hours: The Financial Aid Office is located on the second floor of the building. It is open and available to serve students from 9:00 a.m. to 5:00 p.m. Monday through Friday. Staff members are expected to be in place ready to serve prospective enrollees. Qualified staff members are available during these hours should assistance be needed. 6

7 The office number is (818) The fax number is (818) The website is Distribution of Forms: General financial aid forms and information is distributed from the Financial Aid Office. Financial Aid Staff Meetings: Financial aid staff meetings are held monthly or as needed. Types of program in which the institution participates: 1. Federal Pell Grant Program 2. Federal Direct Loan Program 3. Federal Plus Loan Program Financial Aid Counseling: Before PCN disburses FSA fund, regulations require that student completes an entrance counseling session. The counseling session provides information about how to manage student loans, both during and after schooling. The following topics are being addressed for Financial Aid counseling of students: 1. Sources and the amount of each type of aid awarded: 2. Method by which aid is determined and disbursed, delivered or applied to a student s account. 3. Rights and responsibilities of the student with the respect to enrollment at the institution and receipt of financial aid. Procedures that ensure frequent, periodic reconciliation of fiscal office and financial aid office award data: The school keeps comprehensive and accurate program and fiscal records related to its use of FSA program funds. Records for each FSA recipient must clearly show that the student is eligible for the funds received, and that the funds were disbursed in accordance with program regulations. A school s fiscal records provide a clear audit trail that shows that funds were received, managed, disbursed, and returned in accordance with federal requirements. School shall account for the receipt and expenditure of all FSA program funds in accordance with generally accepted accounting principles. 7

8 The school shall establish and maintain on a current basis: - Financial records that reflect each FSA program transaction - General ledger control accounts and related subsidiary accounts that identify each FSA program transaction and separate those transactions from all other school financial activity - Bank statements for all accounts containing FSA funds - Records of student accounts, including each student s institutional charges, cash payments, FSA payments, cash disbursements, refunds, returns, and overpayments required for each enrollment period. The school shall maintain records for each FSA recipient that includes the following: - The Student Aid Report (SAR) or Institutional Student Information (ISIR) used to determine a student s eligibility for FSA program funds. - Application data submitted to the ED by the school on behalf of the student or parent - Documentation of each student s or parent borrower s eligibility for FSA program funds (e.g. HS diploma, GED) - Documentation of all professional judgment decisions - Financial aid history information for transfer students - Cost of attendance information - Documentation of a student s SAP - Documentation of student s program of study and the courses in which the student was enrolled - Data used to establish student s admission, enrollment status, and period of enrollment - Required student certification statements and supporting documentation - Documents used to verify applicant data, and resolve conflicting information - Documentation relating to receipt of FSA fund - Documentation of and information collected at any initial or exit loan counseling - Documentation supporting the school s calculation of its completion or graduation rates, and transfer-out rates The school shall maintain these records in a systematically organized manner for a minimum of three years from the end of the award year. These records shall be kept in: - hard copy - computer file - CD-ROM - other media forms 8

9 Electronic Processes: The school has capability to use the FSA electronic processes. To be able to exchange data with the FSA systems, the school has Internet access through its network or through an Internet Service Provider. To be in compliance with the administrative capability requirements, the school: - will need to enroll in the Student Aid Internet Gateway (SAIG) where the school will be able to download the records and uses its software to update the records in its own database - will need to use COD s common record format complying with the published schema for the corresponding award year to send and receive origination and disbursement data - will use the Department s EDExpress software to be able to create and edit student records - will submit to the National Student Loan Data System (NSLDS) pertinent data - will electronically submit the school s annual compliance and financial audit statement audits and any other required audits For greater storage and computing power, the school uses optimal system configuration. In relation to this, the school has developed plans for using electronic record-keeping in administering FSA funds, implementing the following safeguards: - password protection - password changes at set intervals - access revocation for unsuccessful log-ins - user identification - random audit surveys with the management - security tests of the code access These records are maintained in the Financial Aid Office while maintaining others in the Business Office. Adequate Checks and Balance Procedure: In addition to having a well-organized financial aid office staffed by qualified personnel, the school ensures that its administrative procedures for the FSA program include an adequate system of internal checks and balances. The school established Business Office and Financial Aid Office with two separate functions. These two functions are performed by individuals who are not members of the same family and who do not together exercise substantial control over the school. This system separates the functions of authorizing payment and disbursing or delivering funds so that no one person or office exercises both functions for any student receiving FSA funds. 9

10 Selected individuals with special security classifications are allowed to make changes to student s data or information to prevent cross-functional tampering. Fiscal Report & Financial Statements: PCN has a process to ensure that the school submits the required annual financial statement audit on time: To provide the ED with the information necessary to evaluate the school s financial responsibility, the school submits financial information in the form of audited financial statement as part of a combined submission that includes the school s compliance audit to the Department every year through ez-audit Electronic Financial Reporting System. PCN shall account for the receipt and expenditure of Title IV program funds In accordance with generally accepted accounting principles. INSTITUTIONAL ELIGIBILITY Updating Application Information: The School s Chief Executive Officer is responsible for submitting a timely and complete Eligibility and Certification Approval Report (ECAR) to the Department of Education. The signed Program Participation Agreement (PPA) is kept in the following offices Business Office, Financial Aid Office, and Chief of Academic Officer s Office. The school keeps a copy of E-App and supporting documentations ain the Office of Chief of Academic Officer. Provisional Certification: The Chief Academic Officer is responsible to coordinate the outlined provisions as a result of the Provisional Certification. Renewal Certification: Process is placed to ensure that a renewal of certification is completed at least 90 days prior to the expiration of current period of participation. 10

11 FSA ADMINISTRATION Processing Financial Aid Application: The Financial Aid Administrator prepares the student s folder by making a label for the file showing the student s name. The FAA also looks at the past years student files and keeps the previous years records with the new file. Student Eligibility: Eligibility for federal student aid is based on financial need and on several other factors. The Financial Aid Administrator determines your eligibility. To receive aid from our programs, you must: 1. demonstrate financial need (except for certain loans). 2. have a high school diploma or a General Education Development (GED) certificate, meet other standards your state establishes that the Department approves, complete a high school education in a home school setting that is treated as such under state law, or have satisfactorily completed six credit hours or the equivalent course work toward a degree or certificate. 3. be working toward a degree or certificate in an eligible program. 4. be a U.S. citizen or eligible noncitizen. 5. have a valid Social Security Number 6. register with the Selective Service if required. 7. maintain satisfactory academic progress once in school. 8. certify that you are not in default on a federal student loan and do not owe money on a federal student grant. 9. certify that you will use federal student aid only for educational purposes. File Documents Required Prior to Awarding: 1. Citizenship status 2. Regular student in an eligible program 3. Enrollment status (at least half time) 4. Need as determined by a valid SAR/ISIR 5. No refund owed to the U.S. Department of Education 6. Not in default on a student loan 7. Verification worksheet: if selected for verification or if conflicting information is found 8. Verification of amount of income tax returns, if selected for verification or if conflicting information is found 9. Cost of attendance 10. Enrollment period 11. H.S. Diploma/GED 11

12 File Documents Required for Students Selected for Verification: In addition to the documents listed, students selected for verification EFC on SAR/ISIR is followed by an asterisk (*)], must also have the following in their file: - A signed copy of the independent applicant s (and spouse s) Federal Income Tax - Return for the base year (1040, 1040A, 1040EZ) identical to that filed with the IRS. - Signed copy of applicant s parent s and student s Federal Income Tax Return for the base year (1040, 1040A, 1040EZ) identical to that filed with the IRS if applicant is dependent. - Copies of all W-2 forms if applicable. - Or, a signed statement attesting that no tax return was or will be filed for the base year and that all information on the application is correct. This statement must be signed by the applicant only if they are independent or by the applicant and a parent if they are dependent. Procedure to Follow Concerning Missing Information: If information is missing, the FAA requests the student to bring missing documents. Once documentation is submitted, it is filed in the student s financial aid file. Procedure to Follow Concerning Conflicting Information: The FAA reviews documents to make sure there is no conflicting information in file. If so, the student is contacted in an attempt to resolve any conflicts. If no conflicts exist, the FAA proceeds with processing. Procedure for Handling Void Applications: The applicant receives and may submit an eligibility letter only. The FAA reviews comments on the letter explaining why the SAR/ISIR is void. If the applicant submits a void application, the FAA assists the applicant in the interpretation of the letter and the corrective actions that may be required. The usual problem is failure of the student and/or others to sign the original application either with a wet signature, or by signing electronically with a pin number. Procedure for Handling Rejected Applications: The applicant receives an Eligibility Letter and Information Review Form. Comments will appear on the Student Aid Report (SAR) explaining the application rejection and indicating action the applicant may take to correct his/her information so that eligibility may be determined. The Financial Aid Administrator s role is the same as with the void application stated above. 12

13 Procedure for Handling Ineligible SAR/ISIR: The applicant receives an Eligibility Letter and Information Review Form. The eligibility letter states that the EFC (Expected Family Contribution) is too high for a Pell Grant. The FAA checks information on the information Review Form for accuracy. If correct, the applicant is probably ineligible. If the information is not correct, the applicant should resubmit the information review form with corrections. Conflicting Data: The school has system to identify and resolve discrepancies in the information that the school receives from different sources with respect to a student s application for financial aid under the Title IV program: School s procedures to resolve conflicting data for applicants are as follows: 1. Applicants selected for verification If the school has reason to believe that any information on the application used to calculate the EFC is discrepant or inaccurate (or if any supporting documentation is discrepant or inaccurate), the applicant is required to provide adequate documentation to resolve the conflict. 2. Applicants not selected for verification the school must resolve conflicting information regardless of whether or not the applicant was selected for verification. The financial aid office reviews all tax returns provided to the school even if they were not requested. All codes on the ISIR are reviewed and resolved by the financial aid office. 3. Other applicant information received by the school The school has an adequate internal system to identify conflicting information that it may have regardless of the source. The school requests for information that could impact the financial aid status of each student applicant e.g. previous school records, financial aid history like aid received from prior colleges attended. The school has a system of identifying and resolving discrepancies in all FSA-related information received. Such system includes a review of the following: - All student aid applications need analysis documents, statements of educational purpose, statements of registration status, and eligibility notification documents. - The Student Aid Report /ISIR - Copies of state and federal income tax returns - Any other information submitted regarding student s citizenship, previous educational experience, documentation of the student s social security number 13

14 The Admission Office provides the Financial Aid Office with any information it has that might affect a student s eligibility such as student s enrollment in an ineligible program or a student receiving an outside scholarship. Conflicting information that needs to be resolved may include information related to student s eligibility such as: - citizenship status - accuracy of SSN - changes in student s academic status - other student financial assistance or resources - inconsistent information used in calculating the student s EFC Examples of issues being considered by the school as conflicting data are as follows: 1. A student not selected for verification, the tax return is on file and information conflicts with items on the FAFSA shows parent single head of household and the FAFSA/ISIR shows the same person as married. 3. Parent or student report on their FAFSA and signed a verification worksheet that they will not file an IRS You have reason to believe that they would have been required to file a U.S. Income Tax Return, as the amount of reported income is greater than or equal to the minimum amount required to file as indicated in the instructions provided on the Statements or information that suggests that the copy of the Income Tax Return you received is not the return actually filed with the IRS. 5. School receives Profile from CSS. Student reports a specific amount in untaxed income; FAFSA reports a different amount (If the school receives the CSS Profile, it must ensure that information contained there does not conflict with other documents received by the school). 6. Veterans Affairs (VA) benefits verified by the Certifying Official in the Admissions Office don t match the FAFSA. (To resolve conflict, can rely on Certifying Official). 7. Admissions information received impacts student eligibility (i.e., student accepted into a non degree program, student received scholarship from high school, etc.) 8. The Student Academic Progress or Enrollment Status on file in the Financial Aid Office doesn t agree with the information from the Admissions Office. Examples of issues not considered conflicting data, but would be considered for review: 1. Assets reported on the FAFSA are $0 or low but significant interest and dividend income or capital gains are reported on the U.S. Income Tax Return. 2. $0 income reported with no explanation as to how the student/parent/family can live on $0 income 3. Address reported by student/parent (i.e., if parents are divorced and the address on the student s tax return does not match the address of the custodial parent s tax 14

15 return). Or the address doesn t match the state of residence as listed on the FAFSA. The school obtains a written explanation to determine residency. 4. If the student or parents reported business net worth but didn t file a schedule C or Form 1120 or just didn t supply it to the school. The school requests for an additional documentation from the student or parent. 5. Box 14 information from W-2, if the dollars represented are untaxed income not previously reported. Verification Process and Procedures: PCN checks the accuracy of all applications the Central Processing System (CPS) selects for verification, up to 30 percent of our total number of federal aid applicants. The CPS will select applicants for verification due to edit checks which identify inconsistencies or potential errors, as well as randomly select applicants for verification. The school also verifies any application information that it has reason to believe is incorrect or discrepant. If the CPS selects an application for verification, it is required that the school verifies five major data elements: 1. Household size 2. Number enrolled in college 3. Adjusted gross income (AGI) 4. U.S. income tax paid 5. Certain untaxed income and benefits Students selected for verification are sent a letter including instructions regarding the documents that should be submitted to the school within ten days. The file is held on a pending status and no award will be made until the requested documentation has been received and reviewed. The data reported on the verification worksheet, federal tax returns, and other supporting documentation provided is checked against the appropriate data elements on the Institutional Student Information Record (ISIR). Generally speaking, when the new information conflicts with the original information presented on the FAFSA, corrections, updates, and adjustments may need to be made and a new expected family contribution (EFC) calculated. The new EFC can be calculated by the school and only needs to be submitted to CPS for students eligible for Federal Pell Grants. Additionally, the school gives each applicant selected for verification a written statement explaining the following: 1. Documents required for verification. 2. Student responsibilities including correction procedures, the deadlines for completing any actions required, and the consequences of missing the deadlines. 15

16 3. Notification methods how the school will notify a student if his or her award changes as a result of verification, and the time frame for such notification. Professional Judgment: The Higher Education Act of 1992 allows Financial Aid Administrators to make professional judgment decisions when there are special or unusual family or student circumstances that may call for adjustments in determining a student s eligibility for financial aid. Circumstances requiring professional judgment must be analyzed on a caseby-case basis. These circumstances must be documented. Professional judgment adjustments may increase or decrease a student s EFC or cost of attendance. Specified adjustments may be made to data elements, but not to the formula. Adjustments made will apply to all institutional, state and Title IV aid awarded. Circumstances which may warrant a professional judgment decision include, but are not limited to the following: 1. A change in income of the student s family that would affect the family s ability to pay for college expenses. Examples would be loss of employment, loss of untaxed benefits, a separation or death. 2. Documentation required: Income Reduction Certification. 3. Student requests consideration as an independent student. 4. Documentation required: Request for Dependency Status Change. 5. Excessive medical expenses. Documentation required: Verification of medical expenses paid by family from doctors, hospitals, etc. or copy of tax return verifying itemized deductions, showing medical expenses. The required documentation listed for each of these circumstances explains what information is necessary for each situation. The documentation must be complete before approval will be considered. Documentation of professional judgment decisions will be maintained in the student s folder. Professional judgment situations are unique. Circumstances other than those listed may be considered and will require documentation specific to that situation. The Financial Aid Administrator has the final authority to make professional judgment decisions. Appeals of that decision would be made to the School President. The decision of the President is final. No further means for appeal are available. Financial Counseling: The following topics are being addressed for financial aid counseling of students: 1. Sources and the amount of each type of aid awarded: 2. Method by which aid is determined and disbursed, delivered or applied to a student s account. 16

17 3. Rights and responsibilities of the student with the respect to enrollment at the institution and receipt of financial aid. Entrance Loan Counseling: Entrance loan counseling sessions are required before the loan is disbursed. Students may come to the Financial Aid Office to get one-on-one counseling conducted by the Financial Aid Administrator and at the end each student is required to complete a loan entrance counseling form. Exit Loan Counseling: Exit loan counseling sessions are required before the borrower is granted clearance for graduation. Students may come to the Financial Aid Office to get one-on-one counseling and at the end each student is required to complete a loan exit counseling form. Students who withdraw from the school are required to complete loan exit counseling before their withdrawal forms are signed. Borrower Rights & Responsibilities: When a student takes on a student loan he/she has certain rights and responsibilities. The borrower has the right to receive the following information before the first loan disbursement. The full amount of the loan The interest rate When the student must start repaying the loan The effect borrowing will have on the student's eligibility for other types of financial aid A complete list of any charges the student must pay (loan fees) and information on how those charges are collected The yearly and total amounts the student can borrow The maximum repayment periods and the minimum repayment amount An explanation of default and its consequences An explanation of available options for consolidating or refinancing the student loan A statement that the student can prepay the loan at any time without penalty The borrower has the right to receive the following information before leaving school. The amount of the student's total debt (principal and estimated interest), what the student's interest late is, and the total interest charges on the loan(s) A loan repayment schedule that lets the student know when his/her first payment is due, the number and frequency of payments, and the amount of each payment The fees the student should expect during the repayment period, such as late charges and collection or litigation costs if delinquent or in default 17

18 An explanation of available options for consolidating or refinancing the student's loan A statement that the student can repay his/her loan without penalty at any time The borrower has a responsibility to do the following. 1. Understand that by signing the promissory note, the student is agreeing to repay the loan according to the terms of the note 2. Make payments on the student loan even if the student does not receive a bill or repayment notice 3. If the student applies for a deferment or forbearance, he/she must still continue to make payments until notification that the request has been granted 4. Notify the appropriate representative (institution, agency, or lender) that manages the student's loan when the student graduates, withdraws from school, or drops below half-time status; changes his/her name, address, or Social Security Number, or transfers to another institution 5. Receive entrance counseling before being given the first loan disbursement, and to receive exit counseling before leaving school Awarding & Packaging Financial Aid: The Financial Aid Office has developed an institutional packaging philosophy to ensure consistent, equitable, and fair distribution of financial aid funds. PCN policy is to provide the financial aid needed to each applicant to ensure that a program will be completed, to minimize the adverse effects of financial concerns on academic performance, to provide the most advantageous combination of aid funds for which the student qualifies, and to make maximum use of all financial aid funds available to the institution. General packaging guidelines are as follows. Once a student file is marked complete, the Financial Aid Administrator will award the aid in the following manner: a. Determine if there are any outside resources b. Determine Pell Grant eligibility c. Determine eligibility for other aid in this order: grant, scholarship. The FAA determines the total aid funds to be awarded during an award year. Careful projections are made to enable the financial aid office to offer fair and equitable packages to students. Students receive notice of financial aid via an award letter. Students are required to accept or decline each award. 18

19 FSA Disbursements: When a student applies for financial aid, the package awarded is based on an academic year. FSA awarded for the academic year will be divided into four payment periods that will cover each term. Federal loans for students will also not be disbursed to Preferred College of Nursing until attendance has been confirmed. Excess loan funds will be refunded to the student (or lender if designated by the student) within 14 days of receipt by the school or no sooner than 21 days after the term starts. Once federal funds have been disbursed, students will receive a disbursement notice from the Financial Aid Office. The Fiscal Year-End reconciliation worksheet is designed as a comprehensive exercise for all programs for year-end reconciliation. PCN ensures that all accounts on a monthly basis are reconciled. Title IV Refunds: Title IV funds are awarded to a student under the assumption that the student will attend school for the entire period for which the assistance is awarded. When a student withdraws, the student may no longer be eligible for the full amount of Title IV funds that the student was originally scheduled to receive. PCN s Financial Aid Office is required by federal statute to recalculate federal financial aid eligibility for students who withdraw, drop out, are dismissed, or take a leave of absence prior to completing 60% of a payment period or term. The federal Title IV financial aid programs must be recalculated in these situations. If a student leaves the institution prior to completing 60% of a payment period or term, the financial aid office recalculates eligibility for Title IV funds. Recalculation is based on the percentage of earned aid using the following Federal Return of Title IV funds formula: Percentage of payment period or term completed = The number of clock hours the student was scheduled to complete in the period divided by the total number of clock hours in the period. Calendar days are used, but breaks of at least 5 consecutive days are excluded from both the numerator and denominator. Up through the 60% point in each payment period a prorate schedule is used to determine the amount of Title IV funds the student has earned at the time of withdrawal. If a student withdraws after 60% (or more) of the term, he/she is considered to have "earned" all of the federal aid for the term. No repayment is necessary. 19

20 If a student after enrollment never attended any classes, he/she did not establish eligibility for any funds. All Title IV disbursed must be returned. If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, the amount of Title IV grant or loan assistance earned by the student must be determined. If the amount disbursed to the student is greater than the amount the student earned, unearned funds must be returned. If the amount disbursed to the student is less than the amount the student earned, and for which the student is otherwise eligible, he /she is eligible to receive a post-withdrawal disbursement of the earned aid that was not received. A post-withdrawal disbursement must be made within 180 days of the date the school determines that the student withdrew. When a student withdraws from Preferred College of Nursing, the withdrawal date used to determine the refund is the date the student began the school's withdrawal process, although the school reserves the right to use the last date of attendance at an academically related activity. The withdrawal date is: First, the date the student began the institution s withdrawal process or officially notifies the school of his/her intent to withdraw: or Second, the last known attendance at a documented academically-related activity (i.e. exam, a tutorial, computer-assisted instruction, academic counseling, academic advisement, turning in a class assignment, or attending a study group that is assigned by the institution); or Third, the midpoint of the period for a student who leaves without notifying the institution. The following rules apply when completing a return calculation for a student: 1. The school will return any unearned Title IV funds within 45 days of the date the school determined the student withdrew, and offer any post-withdrawal disbursement of loan funds within 30 days of that date. 2. The school will disburse any Title IV funds a student is due as part of postwithdrawal disbursement within 45 days of the date the school determined the student withdrew, and disburse any loan funds a student accepts within 180 days of that date. Refunds are allocated in the following order: 1. Unsubsidized Direct Stafford Loans 2. Subsidized Direct Stafford Loans 3. Federal Parent (PLUS) Loans 4. Direct PLUS Loans 5. Federal Pell Grants 6. Other Title IV Assistance 20

21 7. Other Federal Sources of Aid 8. Other State, Private, and Institutional Aid The student is obligated to return any Title IV overpayment in the same order mentioned above. Students who owe overpayments as a result of withdrawals initially will retain their eligibility for Title IV funds for a maximum of 45 days from the earlier of the date of the school sends the student notice of the overpayment or the date the school was required to notify the student of the overpayment. Failure to return Title IV funds will result in the loss of eligibility for financial aid. Satisfactory Academic Progress Policy to Maintain FSA Eligibility: Federal regulations require that all schools participating in any Federal Financial Aid program must adhere to a Satisfactory Academic Progress (SAP) policy. These are the standards by which student s progress toward the completion of their program of study at Preferred College of Nursing will be measured to determine continued eligibility for financial aid. The records of all financial aid recipients will be reviewed at the end of every period of each academic year or prior to the actual receipt of financial aid funds to determine compliance with this policy. This SAP policy is applied consistently to all students at Preferred College of Nursing. The Vocational Nursing program requires 1550 hours for completion. Satisfactory academic progress for full-time students will be measured every 13 weeks for the first academic year and every 11 weeks for the second academic year. Part-time students will be measured every 23 weeks for the first academic year and every 17 weeks for the second academic year. Preferred College of Nursing has an SAP policy that monitors: 1. Quality Required Grade Averages: At the end of each increment, the cumulative grade average will be determined and documented in each student s official record. Students with a 75% or above grade point average (GPA) as specified in the chart below will be considered to be making satisfactory academic progress. Earning a grade below 75% in any theoretical subject within a period will have earned a Failed grade in that subject. Students who failed a theoretical subject can retake the failed subject to improve his or her overall GPA to meet the SAP requirements provided that they don t exceed the 150% maximum timeframe allowed to complete the program. In the event students fail to meet the cumulative 75% GPA for the 1st Period of the 1st Academic Year (AY), the student will be on Financial Aid Warning status. Students will be allowed to continue into the 2nd Period of the 1st Academic Year of the program and receive financial aid. Students must then have a cumulative 75% GPA from 1st 21

22 Period and 2nd Period to remain eligible for financial aid and to avoid termination from the program. In the event students fail to meet the cumulative 75% GPA for the 2nd Period of the 1st Academic Year, the student will be on Financial Aid Warning status. Students will be allowed to continue into the 1st Period of the 2nd Academic Year of the program and receive financial aid. Students must then have a cumulative 75% GPA from 2nd Period of the 1st AY and 1st Period of the 2nd AY to remain eligible for financial aid and to avoid termination from the program. In the event students fail to meet the cumulative 75% GPA for the 1st Period of the 2nd Academic Year, the student will be on Financial Aid Warning status. Students will be allowed to continue into the 2nd Period of the 2nd Academic Year of the program and receive financial aid. Students must then have a cumulative 75% GPA from 1st Period of the 2nd AY and 2nd Period of the 2nd AY to remain eligible for financial aid and to avoid termination from the program. Students terminated from the program and ineligible for financial aid can re-establish eligibility by successfully completing the required number of hours and by attaining the overall required cumulative grade average before the next period. Withdrawal from school has no effect on the student s satisfactory academic progress upon re-entering. Full-time 1 st Academic Period 2 nd Academic Period 1550 Clock HourProgram/48 Weeks After each increment in weeks 13 Weeks 26 Weeks 37 Weeks 48 Weeks Students must have a cumulative 75% 75% 75% 75% grade of at least 75% Part-time 1 st Academic Period 2 nd Academic Period 1550 Clock Hour Program/80 Weeks After each increment in weeks 23 Weeks 46 Weeks 63 Weeks 80 Weeks Students must have a cumulative grade of at least 75% 75% 75% 75% 75% 2. Quantity Required Completion Rate: A student is expected to complete his or her educational objectives within a specified time frame. Students must complete their program of study at PCN within a 150% of the normal program length. In addition to the cumulative grade average listed above, students must also be progressing toward successful completion of the program within a maximum time frame. The maximum time frame of the Vocational Nursing program is (1550 x 1.5 = 2325) 2325 hours. Scheduled hours are any hours that PCN schedules for instructional time, either in the classroom, or at a clinical site. Students who miss scheduled hours need to 22

23 take care that they do not miss so many hours that they are unable to complete the program within the maximum time frame. Students in the Vocational Nursing full-time program must attend an average of 32 hours per week and must successfully complete the program within 48 weeks and students in a part-time program must attend an average of 20 hours per week and must successfully complete the program within 80 weeks at the following rate: Full-time Schedule After each increment in weeks 13 Wks 26 Wks 37 Wks 48 Wks Minimum clock hours required to complete to move forward Part-time Schedule After each increment in weeks 23 Wks 46 Wks 63 Wks 80 Wks Minimum clock hours required to complete to move forward Financial Aid Probation Policy: A Financial Aid Probation is a status assigned to a student who has failed to meet SAP and who has appealed a determination of ineligibility. If the student s appeal is granted, the School may disburse Title IV funds for one payment period and by next payment period, student is expected to: 1. Be making SAP; or 2. Be successfully following an academic plan designed to ensure student will be able to meet SAP by a specific point in time Appeal Procedures: In the event a student fails to meet the above criteria for two consecutive periods, the student will be deemed ineligible and terminated. However, a student may appeal the decision to the Program Director by stating in writing, the reasons why the minimum requirements were not met. The Financial Aid Administrator and the Program Director will review the appeal and determine whether suspending financial aid is justified. The student will be advised in writing of the decision. Appeal Policy: On a written appeal by a student, failure to meet one or more satisfactory academic progress requirements will be evaluated by the Financial Aid Administrator and Program Director. The student will be notified of the decision within 14 days of the financial aid office receiving the written appeal request. The following types of information may be considered in determining if a student is still maintaining satisfactory academic progress: 23