Can’t We All Just Get Along Michael Hague University of Michigan

There are many areas where student services and compliance can be significantly affected by non-communication or downright miscommunication between financial aid and student financial service.

What are some of the biggest problem areas? What can we do together to address the issue? What are some of the outcomes? Are there any other communication strategies?

Un-official withdrawals Return to Title IV Funds (R2TIV) Examples Stale date checks Payment rules 1098-t’s Holds Escheating checks to the state

Can be from inability to officially withdraw. Illness, accident, etc. Date would be the date of the illness or accident Other Dropouts How do you know? – 0.0 GPA

0.0 GPA’s are tricky. Many schools did not actively evaluate this group. Other withdrawal types are usually identified during the semester. ED assumes that a student with 0.0 stopped attending at the 50% point. Must review these within 30 days.

Are all 0.0 GPA’s a trigger for R2TIV? No. Students may earn all zeros. Student may have been involved in an academically related activity past that point. It is up to the institution to determine the date and document it. Many institutions now “require” a last date of attendance for any failing grade.

OK now that the last date of attendance has been determined aid may have to be sent back. For an un-official withdrawal the semester may be over but it should be done within 30 days of the end of the semester.

Does this look familiar? Little Stephanie has $1,000 of tuition charges for Fall. FA awards her a Pell Grant of $2,500. SBS rocks and processes her refund by the 10 th day of the semester. Zero balance account and everyone is Happy, Happy.

During the Fall semester Stephanie registers for Winter semester. SBS rocks again and process the Winter refund by the 10 th day of the semester. The next day “those FA people” remove $1,000 of FALL!!!!! Pell Grant.

Cynthia has $2,750 of Stafford loans for Fall and no other aid. Her account balance is $0. Winter term starts and Cynthia receives her $2,750 of loans. During the term $750 of loans from FALL are reversed resulting in a balance due of $750.

Jen’s balance is $0 at the end of Fall and does not enroll for Winter. In January FA removes $500 in loan from Fall term resulting in a student account balance of $500.

Communication Timing Follow up

Communication between the offices is key Need to make sure both offices know what is being done, why and when. At EMU, FA would notify SBS of all aid recipients that had a 0.0 GPA before the student was notified. Students aid was cancelled (R2TIV done) and then they could prove attendance. Now many schools use Last date of attendance.

Getting information about effected student to SBS timely is key If SBS knows before refunds go out or before the next semester starts there are still options. We would hold refunds for any of the 200 or so students. Schools could dis-enroll. Allows SBS offices to solve the student problem to continue on.

Holding refunds gives us up to 10 more days to work with the student If the refund is during the same award year, it can be used to pay back the past due balance. Would have solved Example #1 problem.

What are the FA options? If a loan was refunded for one semester, the student may have eligibility in a future semester for the additional loan. Example #2 may have unmet need in Winter that can be met with the returned portion of the loan from Fall.

What are the SBS policies for AR How do you “age” an account? 0 days when the aid is adjusted? Back to the start of the term? What about adding collection costs and internal payment options? Could Example #3 be solved in house?

FA and R&R worked much closer to identify 0.0 students. R&R instituted a Last Date of Attendance requirement for failing grades. Students who want to continue can work with our office.

Payment plans and agreements can be set up before the semester starts. Finance wants more revenue and FA wants student to have the opportunity to continue. Need to point out wins. Student that we worked with for 6 semesters is “finally gone.” – That is a huge win-win. Not a negative.

What is your policy on accepting checks? Be sure to work together on who is doing what and why. Sometimes scholarship checks come in very late. 6 month checks can still be cashed Is sending the check back better than cashing it?

What is the business office policy for accepting payments? Can a student overpay the account? If so how much? If not what do you do?

What is the 1098-t? Tax for reporting either payments and aid or charges and aid What is it used for? May be used to identify eligibility for tax credits Not used for other purposes (taxable scholarships, etc) Who is the owner of the form? Have you talked about it lately? Penalties, some changes in filing SSN’s and ITINS

What are your holds? How many do you have? Who can release them? What do they prevent?

What happens when financial aid checks are not cashed? Who reviews uncashed checks and on what schedule?

Regular meetings with directors or others GLOW Quick feedback answers Text IM Pre-semester timing meeting Set all the dates Set who is doing what

All the answers to all of your questions Volume 5, chapter 6 All of the answers to all of FA’s questions fsahandbook&awardyear= http://ifap.ed.gov/ifap/byAwardYear.jsp?type= fsahandbook&awardyear=

Michael Hague Divisional Controller, Director of Student Business Operations University of Michigan