description: tags: 0405Vol2Ch6ConsumerInformation

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CHAPTER

6

ProvidingConsumerInformation

This chapter describes the requirements for the consumer information that a school must provide to students, the Department, and others.

I

n addition to the disclosure of general information required underthe consumer information regulations, there are specific disclosureand reporting requirements with which schools must comply.Those requirements are found in the —•Jeanne Clery Disclosure of Campus Security Policy andCampus Crime Statistics Act (Campus Security/CleryAct) – requires an Annual Security Report, disclosure of an Institution’s Security Policies and reporting of CrimeStatistics;•Student Right-to-Know Act – requires disclosure of information on Graduation, Completion, and Transfer-Out Rates; and the Graduation, Completion, andTransfer-Out Rates for Student Athletes at schools thataward athletically related aid.•Equity in Athletics Disclosure Act – requires disclosureof Athletic Program Participation Rates and FinancialSupport Data.Schools that participate in the campus-based programs must alsocomply with disclosure requirements for drug and alcohol abuseprevention. Although some of these disclosure requirements containcommon elements, each disclosure is required separately (see thechart

School Disclosure Requirements

at the end of this chapter).As part of the continuing effort to reduce the number of de-faulted federal student loans, it is important to provide students withinformation necessary for choosing an appropriate academic programand for fully understanding the responsibility of loan repayment.

Consumer information cites

34 CFR668.41, 668.42, 668.43, 668.44,668.45, 668.46, 668.47, & 668.48

General information includes

Financial assistance information pursuantto 34 CFR 668.42, andInstitutional information pursuant to34 CFR 668.43

Civil penalty

In addition to limiting, suspending, orterminating the participation of any schoolthat fails to comply with the consumerinformation requirements, the Departmentmay impose civil fines of up to $27,500 foreach violation.

Civil penalty cite

20 U.S.C. §1094(c)(3)(B)

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Financial assistanceinformation cite

34 CFR668.42

This chapter also includes a summary of the effects of misrepre-sentation of institutional information on a school’s FSA participation.In some cases a school is only required to make information avail-able upon request, while in others the school must directly distributethe required information. You can find a chart summarizing the dis-closure requirements at the end of this chapter.Each year a school must provide to enrolled students a notice con-taining a list of the consumer information it must disseminate underthe Higher Education Act of 1965, as amended and the procedures forobtaining this consumer information.

Schools must provide this no-tice through a one-on-one distribution.

Schools must also provide a notice (though not an individualnotice) of student rights under the Family Educational Rights andPrivacy Act (FERPA). You can find a sample notification at ED’sFERPA Web site

http://www.ed.gov/policy/gen/guid/fpco/ferpa/ps-officials.html

BASIC CONSUMER INFORMATIONREQUIREMENTS

Subpart D of the General Provisions lists basic information aboutthe school and about financial aid that must be available to enrolledand prospective students. If necessary, these materials must be pre-pared by the school. However, much of the required information mayalready be available in brochures and handouts routinely disseminatedby the school or in federal publications such as

The Student Guide

. Youcan find a chart summarizing a school’s consumer information dis-closure responsibilities at the end of this chapter.

Financial aid information

At a minimum, the following information must be provided aboutfinancial assistance available at a school:

•

the need-based and non-need-based federal financial aidthat is available to students;

•

the need-based and non-need-based state and local aidprograms, school aid programs, and other private aidprograms that are available;

•

how students apply for aid and how eligibility is determined;

•

how the school distributes aid among students;

•

the rights and responsibilities of students receiving aid;

•

how and when financial aid will be disbursed;

General information cite

34 CFR668.43

Individual Notice Required

Reminder

2-85Chapter 6 — Providing Consumer Information

•

the terms and conditions of any employment that is part of the financial aid package;

•

the terms of, the schedules for, and the necessity of loanrepayment and required loan exit counseling; and

•

the criteria for measuring satisfactory academic progress,and how a student who has failed to maintain satisfactoryprogress may reestablish eligibility for federal financial aid.

General information about the school

The school must provide the following minimum informationabout itself:

•

the names of associations, agencies, and/or governmentalbodies that accredit, approve, or license the school and itsprograms, and the procedures by which a student mayreceive a copy for review of the school’s accreditation,licensure, or approval;

•

special facilities and services available to disabled students;

•

the costs of attending the school (tuition and fees, booksand supplies, room and board, and applicable transportationcosts, such as commuting) and any additional costs of theprogram in which the student is enrolled or has expressedan interest;

•

a statement of the requirements for the return of FSAprogram funds when a student withdraws from school,information about any refund policy with which the schoolmust comply, and the requirements for officially withdrawingfrom the school. (For more information about the Return of Federal Student aid, see

Volume 5 – Overawards, Overpayments,and Withdrawal Calculations.

)

•

the degree programs, training, and other education offered;

•

the availability of a GED program, if the school admitsstudents who do not have a high school diploma orequivalent;

•

the instructional, laboratory, and other physical plantfacilities associated with the academic programs;

•

a list of the faculty and other instructional personnel;

•

whom to contact for information on student financialassistance and whom for general institutional issues;

•

the terms and conditions under which students receivingfederal education loans may obtain deferments; and

•

information regarding the availability of FSA program fundsfor study abroad programs.

The FSA Assessment modules

that can assist you in understanding andassessing in your compliance with theprovisions of this chapter are "ConsumerInformation," at

http://ifap.ed.gov/qamodule/ ConsumerModule/ ConsumerInformation.html

"Equity in Athletic Disclosure Act," at

http://ifap.ed.gov/qamodule/ ConsumerModule/ ConsumerInformationpage10.html

"Drug and Alcohol Abuse Prevention Infor-mation," at

http://ifap.ed.gov/qamodule/ ConsumerModule/ ConsumerInformationpage11.html

"Campus Security,"at

http://ifap.ed.gov/qamodule/ ConsumerModule/ ConsumerInformationpage13.html

and "FEPRA," at

http://ifap.ed.gov/qamodule/ ConsumerModule/ ConsumerInformationpage18.html

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