HERA Training 2006

Student Eligibility, Institutional Eligibility, Need Analysis and R2T4

___________________________________

HERA

Law Enacted February 8, 2006

___________________________________
___________________________________
___________________________________

Effective dates for major
provisions:
•Effective February 8, 2006
•Effective July 1, 2006
•Effective July 1, 2007

Slide
1

___________________________________
___________________________________
___________________________________

1

___________________________________

HERA
Areas impacted by change:

___________________________________
___________________________________

New Grant Programs

Slide
2

___________________________________

Loan programs

___________________________________
General institutional and
student eligibility issues

___________________________________
___________________________________

2

___________________________________

Topic Summary

___________________________________



Slide
3

Student Eligibility
Academic Year
Program Eligibility
Distance Education

• Expected Family
Contribution
• Cost of Attendance
• Need Analysis
• R2T4

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

3

1

HERA Training 2006

Student Eligibility, Institutional Eligibility, Need Analysis and R2T4

___________________________________
___________________________________
___________________________________

Student Eligibility

Slide
4

___________________________________
___________________________________

Effective July 1, 2006

___________________________________
___________________________________

___________________________________

Drug Conviction Eligibility

___________________________________
___________________________________

• Provides that an applicant loses eligibility
for Title IV aid only if the drug related
offense for which he or she was convicted
occurred while the student was receiving
Title IV aid.

Slide
5

___________________________________
___________________________________

– Date of ineligibility still begins on date of
conviction

___________________________________
___________________________________

5

___________________________________

2006 – 2007 Drug Conviction Eligibility
For 2006-2007

___________________________________
___________________________________

g
–Revised Dru
Worksheet

___________________________________

revised
–CPS will send
l
al
to
et
workshe
answered
applicants who
“Yes”

Slide
6

___________________________________
___________________________________
___________________________________

6

2

HERA Training 2006

Student Eligibility, Institutional Eligibility, Need Analysis and R2T4

___________________________________

2007 – 2008 Drug Conviction Eligibility

___________________________________

For 2007-2008

___________________________________

ge will be
–New langua
into
ed
at
incorpor
A on the
FS
FA
,
A
FAFS
S
Web, and CP

Slide
7

___________________________________
___________________________________
___________________________________
___________________________________

7

___________________________________

Active Duty Military Now Independent Students

___________________________________
___________________________________
• HERA adds the following individuals to
those that are considered independent

Slide
8

___________________________________
___________________________________

– Serving on Active Duty in the Armed Forces
for other than Training Purposes

___________________________________
___________________________________
8

___________________________________

Active Duty Military Now Independent Students

___________________________________

• Also included in Active Duty
Military are:

___________________________________

–National Guard or Reserves called
to Active Duty

Slide
9

___________________________________

• For other than Training Purposes, and
• Activated by Federal Authority

___________________________________
___________________________________
___________________________________

9

3

HERA Training 2006

Student Eligibility, Institutional Eligibility, Need Analysis and R2T4

___________________________________

Repayment of Fraudulently Obtained Title IV

___________________________________

• If student is convicted, or has pled
nolo contendere (no contest) or guilty
to, a crime involving fraud in obtaining
Title IV Funds

Slide
10

___________________________________
___________________________________

– Is ineligible to receive Title IV funds until
s/he has completely repaid fraudulently
obtained funds to the Secretary or loan
holder(s).

___________________________________
___________________________________
___________________________________

10

___________________________________
___________________________________
___________________________________

Academic Year

Slide
11

___________________________________
___________________________________

Effective July 1, 2006

___________________________________
___________________________________

___________________________________

Length of Academic Year

___________________________________

• New Definition

___________________________________

– Minimum:
• 30 weeks of instructional time for a
program measured in Credit Hours
• 26 weeks instructional time for a program
measured in Clock Hours

Slide
12

___________________________________
___________________________________
___________________________________
___________________________________

12

4

HERA Training 2006

Student Eligibility, Institutional Eligibility, Need Analysis and R2T4

___________________________________
___________________________________
___________________________________

Program Eligibility

Slide
13

___________________________________
___________________________________

Effective July 1, 2006

___________________________________
___________________________________

Direct Assessment of Student Learning

___________________________________

• HERA adds Competency Based Student
Learning as new type of Eligible Program

___________________________________
___________________________________

– Must be consistent with accreditation

Slide
14

___________________________________

– Direct Assessment programs are not programs
offering credit for “Life Experience”

___________________________________
___________________________________
___________________________________

14

___________________________________
___________________________________
___________________________________

Distance Education

Slide
15

___________________________________
___________________________________

Effective July 1, 2006

___________________________________
___________________________________

15

5

HERA Training 2006

Student Eligibility, Institutional Eligibility, Need Analysis and R2T4

___________________________________

Modification of 50% Rule

___________________________________
• Telecommunication courses no longer
considered correspondence courses

Slide
16

___________________________________
___________________________________

• Telecommunication students no longer
considered correspondence students

___________________________________
___________________________________
___________________________________

16

___________________________________

Modification to 50% Rules

___________________________________

• Schools with > 50% of telecom courses
are Title IV eligible

Slide
17

___________________________________
___________________________________

• Schools with 50% or more students
enrolled in telecom courses are Title IV
eligible

___________________________________
___________________________________
___________________________________

17

___________________________________

Telecommunications Courses

___________________________________
• Short term telecommunications certificate
programs less than 1 year also eligible

___________________________________
___________________________________

Slide
18

___________________________________
___________________________________
___________________________________
18

6

HERA Training 2006

Student Eligibility, Institutional Eligibility, Need Analysis and R2T4

___________________________________
___________________________________
___________________________________

Cost of Attendance

Slide
19

___________________________________
___________________________________

Effective July 1, 2006

___________________________________
___________________________________

19

___________________________________

Excluded Assistance

___________________________________
• At school’s option state assistance is
excluded:

Slide
20

___________________________________
___________________________________

– If designated to offset a specific component of
COA

___________________________________

– If excluded from either COA or EFA, it is
excluded from both

___________________________________
___________________________________

20

___________________________________

Optional Cost of Attendance Components

___________________________________
• Less than half-time COA

Slide
21

___________________________________

May include room and board

___________________________________

• May include up to three semesters or
equivalent
• No more than 2 semesters or equivalent
may be consecutive

___________________________________
___________________________________
___________________________________

21

7

HERA Training 2006

Student Eligibility, Institutional Eligibility, Need Analysis and R2T4

___________________________________

Optional Cost of Attendance Components

___________________________________

• May include cost of 1st professional
license/certificate

___________________________________
___________________________________

– Must be required by state or commonly
required for employment
– Cost must be incurred while enrolled
– Does not include prep courses unless part of
eligible program

Slide
22

___________________________________
___________________________________
___________________________________

22

___________________________________
___________________________________
___________________________________

Expected Family
Contribution

Slide
23

___________________________________
___________________________________

Effective July 1, 2006

___________________________________
___________________________________

___________________________________

Family Ownership of Small Business

___________________________________

Slide
24

___________________________________

• Exclude from assets in need analysis any part
of a family owned and controlled business with
no more than 100 FT employees or FTE’s

___________________________________
___________________________________
___________________________________
___________________________________

24

8

HERA Training 2006

Student Eligibility, Institutional Eligibility, Need Analysis and R2T4

___________________________________

Qualified Education Benefits

___________________________________

• Qualified Education Benefits now
include:

___________________________________

– Coverdell education savings accounts
– Prepaid tuition plans from a State
– Qualified tuition plans (529 prepaid tuition
and 529 savings plans)

Slide
25

___________________________________
___________________________________
___________________________________
___________________________________

25

___________________________________

Qualified Education Benefits

___________________________________

• Benefit is reported as an asset of parent of
a dependent student

___________________________________

– Only if the parent is the owner of the account or
plan

Slide
26

___________________________________

• Not considered an asset of a dependent
student
• Considered asset of an independent
student if that student owns the plan

___________________________________
___________________________________
___________________________________

26

___________________________________

Qualified Education Benefits In Need Analysis

___________________________________

• 529 Prepaid tuition plan:

___________________________________

– Value is equal to refund value of any credits or
certificates purchased

Slide
27

___________________________________

• 529 savings plans and Coverdell:

___________________________________

– Value is equal to current balance of the account

___________________________________
___________________________________
27

9

HERA Training 2006

Student Eligibility, Institutional Eligibility, Need Analysis and R2T4

Qualified Education Benefits

• 529 plans and Coverdell accounts
both treated as asset of the owner
– Only if owner is not a dependent student

Slide
28

• Distributions from these plans are
never treated as a resource or
counted against COA

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

28

___________________________________
___________________________________

Simplified Needs Test
and Automatic Zero EFC

Slide
29

Effective July 1, 2006

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

Automatic Zero EFC & SNT

___________________________________
___________________________________

• AGI Threshold increased to $20,000 or
less to qualify for auto zero EFC

Slide
30

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

30

10

HERA Training 2006

Student Eligibility, Institutional Eligibility, Need Analysis and R2T4

Automatic Zero EFC & SNT
• For dependent students to qualify, only
parent needs to have filed:
– 1040A or 1040 EZ, or
– Have been eligible to file 1040A or 1040 EZ,
or
– Was not required to file

Slide
31

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

31

Automatic Zero EFC & SNT

___________________________________
___________________________________

• CPS processing beginning 5/24/06
– New AGI threshold and tax form edits in effect at
CPS

Slide
32

– Earlier ISIRs meeting the new criteria will be
reprocessed for SNT and Auto Zero EFC

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

32

SNT and Auto Zero EFC
• Receipt of Federal means-tested benefit
qualifies for SNT and auto zero EFC
in place of tax return filed requirement

___________________________________
___________________________________
___________________________________
___________________________________

Slide
33

• Family must still meet the income
requirements to qualify for SNT and auto
zero

___________________________________
___________________________________
___________________________________

33

11

HERA Training 2006

Student Eligibility, Institutional Eligibility, Need Analysis and R2T4

SNT and Auto Zero EFC

___________________________________

• Means-tested Federal benefits

___________________________________

– SSI
– Food Stamps
– Free and reduced school lunches
– TANF
– Special supplemental nutrition program

Slide
34

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

34

SNT and Auto Zero EFC

___________________________________
___________________________________

• Based on benefit received in base
year
– Calendar year 2005 for 2006-07

Slide
35

• Benefit may be received by student,
spouse, or parents (if dependent
student)

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

35

___________________________________
___________________________________

Slide
36

Expected Family
Contribution
Effective July 1, 2007

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

12

HERA Training 2006

Student Eligibility, Institutional Eligibility, Need Analysis and R2T4

Dependent Students

___________________________________
___________________________________

• Student’s Income Protection Allowance
increased from $2,200 to $3,000
• Student’s asset contribution reduced from
35% to 20%

Slide
37

• No change to parent IPA or asset
contribution rate

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

37

Independent Students
• Without dependents other than spouse

– Student’s IPA changed from $5,000 to $6,050
(single student and married student with both
enrolled)

Slide
38

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

38

Independent Students

___________________________________
___________________________________

• Without Dependents Other Than Spouse
– IPA changed from $8,000 to $9,700
(married student, only one enrolled)

Slide
39

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

39

13

HERA Training 2006

Student Eligibility, Institutional Eligibility, Need Analysis and R2T4

Independent Students

___________________________________
___________________________________

• Without Dependents Other Than Spouse:
– Reduces asset conversion rate from 35% to
20%

Slide
40

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

40

Independent Students
• With dependents other than spouse
– Contribution from assets reduced from 12 %
to 7 %

Slide
41

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

41

Updated Tables

___________________________________
___________________________________

• For 2007-2008 Award Year only
– IPA increased by 5%
– Only for independent students with
dependents other than spouse

Slide
42

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

42

14

HERA Training 2006

Student Eligibility, Institutional Eligibility, Need Analysis and R2T4

___________________________________
___________________________________
___________________________________

Return of Title IV Funds

Slide
43

Effective July 1, 2006

___________________________________
___________________________________
___________________________________
___________________________________

HERA’s R2T4 Changes





Program Applicability
Completion of 60% of the period
Scheduled Clock Hours
Leaves of Absence
Grant Overpayment Requirements
Post-Withdrawal Disbursement
Counseling
• Return of funds within 45 Days

Slide
44

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

44

Program Applicability
R2T4 Requirements Will Apply to:
Academic Competitiveness Grants

___________________________________
___________________________________
___________________________________
___________________________________

Slide
45

National SMART Grants

___________________________________
___________________________________
___________________________________

45

15

HERA Training 2006

Student Eligibility, Institutional Eligibility, Need Analysis and R2T4

Program Applicability
R2T4 Requirements Will No Longer Apply to:

Slide
46

___________________________________
___________________________________

Leveraging Educational Assistance
Partnership (LEAP)

___________________________________

Supplemental Leveraging Educational
Assistance Partnership (SLEAP)

___________________________________

Gaining Early Awareness and Readiness
for Undergraduate Programs (GEAR-UP)
Student Support Services (SSS)

___________________________________
___________________________________
___________________________________

46

Program Applicability

___________________________________
___________________________________

FT
DRA

___________________________________
___________________________________

Slide
47

___________________________________
___________________________________
___________________________________
47

Scheduled Clock Hours

___________________________________
___________________________________
___________________________________

Only scheduled hours to be completed will
be used to determine the percentage of
the period completed

Slide
48

___________________________________
___________________________________
___________________________________
___________________________________

48

16

HERA Training 2006

Student Eligibility, Institutional Eligibility, Need Analysis and R2T4

Clock Hour % of Title IV Aid Earned

___________________________________
___________________________________

FT
DRA

___________________________________
___________________________________

Slide
49

___________________________________
___________________________________
___________________________________
49

Percentage of Title IV Aid Earned Example

FT
DRA

• 450 clock hour
payment period

Slide
50

• Student completed
235 clock hours
• Student was
scheduled to
complete 261 clock
hours

___________________________________
___________________________________
___________________________________
___________________________________

261

450

58 0

58 0

___________________________________
___________________________________
___________________________________

50

Completion of 60% of the Period

9
9

Impacts Clock Hour schools
Only scheduled Clock Hours used to
determine percentage completed

___________________________________
___________________________________
___________________________________
___________________________________

Slide
51

Example: Student withdraws at the point they were
scheduled to complete greater than 60%, they earn
100% of their Title IV Aid

___________________________________
___________________________________
___________________________________

51

17

HERA Training 2006

Student Eligibility, Institutional Eligibility, Need Analysis and R2T4

Leaves of Absence

___________________________________
___________________________________

• An institution may grant more than one
leave of absence to a student
– Total of all leaves granted may not exceed 180
days in a 12 month period

Slide
52

• New in the law

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

52

Grant Overpayment Requirement
• Amount a student must repay is limited to
amount by which the original grant
overpayment amount exceeds half of the
total Title IV grant funds received by the
student

Slide
53

• Student doesn’t have to repay grant
overpayment of $50 or less per program

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

53

___________________________________

ACG
Calculation:
Total Title IV Grant = $3000
$2,000 Pell, $375 ACG, $625
FSEOG
Original Grant Overpayment of student
= $1,600

Slide
54

$3,000 X 50% = $1,500
Student must repay $100 of grant
overpayment

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

54

18

HERA Training 2006

Student Eligibility, Institutional Eligibility, Need Analysis and R2T4

Grant Overpayment R2T4 Worksheet

FT
DRA
$5,000

$3,400

$1,600 00

___________________________________
___________________________________
___________________________________
___________________________________

Slide
55

___________________________________

$1,500 00

$3,000

___________________________________
$1,600

$1,500

___________________________________

$100 00

55

Order of Funds Returned by school

FT
DRA

___________________________________
___________________________________
___________________________________
___________________________________

Slide
56

___________________________________
___________________________________
___________________________________
56

Order of Return of Grant Funds by the Student

FT
DRA

___________________________________
___________________________________
___________________________________
___________________________________

Slide
57

$100

___________________________________
___________________________________
___________________________________

57

19

HERA Training 2006

Student Eligibility, Institutional Eligibility, Need Analysis and R2T4

Post-Withdrawal Disbursement Counseling

___________________________________
___________________________________

• Institution is required to contact a
withdrawn student prior to making a PostWithdrawal Disbursement (PWD) of loan
funds to explain loan obligations, and;

Slide
58

– Confirm if the loan funds are still wanted by
the student

• School must document the contact and
final outcome determination

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

58

Return of Funds Within 45 Days
• Must return unearned funds within 45 days
after date of determination

Slide
59

___________________________________
___________________________________
___________________________________

• Refers to funds school is required to repay

___________________________________

• Increase from 30 to 45 days

___________________________________
___________________________________
___________________________________

59

___________________________________

Topic Summary

___________________________________



Slide
60

Student Eligibility
Academic Year
Program Eligibility
Distance Education

• Expected Family
Contribution
• Cost of Attendance
• Need Analysis
• R2T4

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

60

20

HERA Training 2006

Student Eligibility, Institutional Eligibility, Need Analysis and R2T4

___________________________________
___________________________________
___________________________________
___________________________________

Slide
61

___________________________________
___________________________________
___________________________________

Questions?

___________________________________
___________________________________
___________________________________
___________________________________

Slide
62

___________________________________
___________________________________
___________________________________
62

Link to Evaluation Survey

___________________________________
___________________________________

http://www.zoomerang.com/survey.zgi?p=WEB2

Slide
63

25CYCF2EEC

___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

63

21

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.