1. Greg Martin | Dec. 2013 U.S. Department of Education 2013 FSA Training Conference for Financial Aid Professionals Foreign Schools Student and Educational Program Update Session # 47

2. What are Written Arrangements?

3. Written Arrangements Two types of written arrangements Consortium agreement Contractual agreement Consortium agreement A written agreement between two or more eligible institutions Contractual Agreement A written agreement between an eligible and an ineligible school 3

4. Written Arrangements Foreign Institutions may not enter into contractual agreements An ineligible institution or organization may not provide any portion of an eligible foreign institution’s program(s) Since foreign institutions may only enter into written arrangements with other eligible institutions, the balance of this presentation (unless noted) will refer only to consortium agreements

5. Consortium Agreement Student may take courses at a school other than the home school and have those courses count toward the degree or certificate at the home school Home school must give credit courses taken at other schools on same basis as if it provided the training itself Underlying assumption that the home institution has found the other institution’s academic standards equivalent to its own

6. Consortium Agreement Home institution may decline to give credit for courses where a student earns a grade not acceptable at the home institution Even if the host school would accept that grade for its resident students SAP Grades received through a consortium agreement do not have to be included when calculating GPA but must be included in calculating percentage of credits earned vs. attempted

7. Disclosures Institution must provide enrolled and prospective students a description of consortium agreements it has entered into including Portion of the educational program the institution that grants the degree is not providing Name and location of other institutions that are providing that portion of the program Method of delivery of that part of the program, and Estimated additional costs students may incur by enrolling in that program provided under a consortium agreement * * Note: Individual, student-initiated agreements are not subject to these disclosures

8. Duration of Consortium Agreements If not written for an individual or group of students, agreements between schools may go on indefinitely and do not need to be renewed unless terms of the agreement change Individually initiated agreements or those for specific groups continue for a length of time specified in the agreement No institution is required to enter into a consortium agreement with another eligible institution regardless of how much a student may desire such an agreement to be executed

9. Division of Responsibilities Either the home or host school may assume responsibility for disbursing loan funds and/or monitoring students Home school generally assumes responsibility for disbursing and monitoring May be easier for the host institution to perform these functions if a student will be at that institution for a full term or academic year

10. Division of Responsibilities Under a consortium agreement, any participating institution may make Direct Loan calculations and disbursements without being considered a third-party servicer Institution that disburses Direct Loan to the student is responsible for maintaining information on the student’s eligibility, calculation of award, money disbursed etc. Also responsible for returning funds in overpayment/ R2T4 situations

11. Structure of Consortium Agreements Consortium agreement can be a blanket agreement between two or more eligible schools or it can be for a specific student Institutional options One agreement for each student Separate agreement with each host school Blanket agreement with a group of schools No limit on the portion of the eligible program that may be provided by the host institution(s) Agreement contents may vary widely depending upon the interests of the institutions involved and any governing body standards

12. Contents of a Consortium Agreement The Department does not dictate a format of an agreement or where it is kept Agreement must include Institution that will grant the degree or certificate Student’s tuition, fees, room and board costs at each school Student’s enrollment status at each school School that will be responsible for disbursing Direct Loan funds and monitoring the student’s eligibility, and Procedures for calculating awards, disbursing aid, monitoring SAP, and other requirements such as recordkeeping and returning funds if a student withdraws.

13. Consortium Agreement Restrictions Eligible foreign institutions, (except with respect to clinical training part of a medical, veterinary or nursing program offered by the institution) may not enter into written arrangements (consortium agreements) with institutions in the United States Recall that eligible foreign institutions are not permitted to enter into written arrangements with non-eligible entities (known as contractual arrangements) anywhere

14. Foreign Institution Eligibility As it Pertains to Written Arrangements

15. Foreign Institutions -Eligibility Programs offered in the U.S. by foreign institution are not eligible for participation in the Title IV programs Regardless of whether offered at a U.S. location of the foreign institution, or through arrangement with a U.S. school Status of programs offered in the U.S. by foreign institutions is dictated by the regulatory definition of a foreign institution

16. Foreign Institutions -Eligibility Foreign Institutions regulations do not prohibit participating foreign institutions from offering a program in the U.S. A foreign institution may offer programs in whole or in part in the U.S. But… Such a program is not an eligible program for Title IV program purposes Students attending such a program are not eligible to receive Title IV funds for any part of the program

17. Foreign Institutions -Eligibility Foreign institution is an institution that, except with respect to clinical training part of a medical, veterinary, or nursing program; Has no U.S. location Has no written arrangements (defined in §668.5) with institutions/organizations located in the U.S. for students enrolling at the foreign institution to take courses from institutions located in the U.S.; and Does not permit students to enroll in any course offered by the foreign institution in the U.S. - includes research, work, internship, externship or special studies within the U.S. Exception - independent research done by a student in the U.S. for not more than one academic year conducted during the dissertation phase of a doctoral program under the guidance of faculty and research can only be performed in the U.S. Note: The above is not complete definition of foreign institution but rather that part relevant to coursework offered in the U.S.

18. Internships

19. Internships – Foreign Institutions Foreign institution (except with respect to clinical training part of a medical, veterinary, or nursing program offered by the institution) may not permit Direct Loan recipients to enroll in any course offered by the foreign institution in the United States Includes research work, internship, externship, or special studies within the United States Excepts independent research done by an individual student in the United States for not more than one academic year Must be conducted during the dissertation phase of a doctoral program Must be done under the guidance of faculty Must be research that can only be performed in the United States

20. Internships – Foreign Institutions Internships /externships are, with exception, subject to written arrangement requirements found in 668.5 Exception –internships/ externships governed by explicit accrediting agency standards requiring oversight and supervision of institution are not subject to written arrangement requirements Institution must be responsible for the internship/externship Students must be monitored by qualified institutional personnel U.S. institutions generally meet the above standard through accreditation agency oversight Comparable standard for foreign institutions is oversight of internships/externships by some outside agency (accrediting agency or government entity) Institution must be responsible for internship/externship Students must be monitored by qualified institutional personnel

21. Internships-Foreign Institutions Practical effect of applicable regulations and policy: Internships/externships at foreign institutions must be subject to oversight by an accreditor or government entity if the program of which the internship/externship is part, is to be eligible If the above cannot be demonstrated, the internship is subject to the requirements of written arrangements in 668.5

22. Internships – Foreign Institution Foreign institutions may have written arrangements with eligible entities only If an internship is subject the requirements for written arrangements and that internship is with a non-eligible entity (e.g., a local company), the program of which that internship is part would not be an eligible program

23. Written Arrangements Between U.S. Institutions and Foreign Institutions

24. U.S. Institution Written Arrangements Eligible U.S. institution may have written arrangements with a foreign institution or organization acting on behalf of the foreign institution Foreign institution provides part of a program Students enrolled in that program may receive Title IV funds

25. U.S. Institution Written Arrangements Any arrangement between a U.S. institution and a foreign institution or organization acting on behalf of a foreign institution is considered to be one between an eligible U.S. institution (where student is enrolled) and an ineligible foreign institution Even if the foreign institution is otherwise Title IV eligible Note: These arrangements are known as Contractual Agreements – U.S. institutions may execute a contractual agreement with a foreign school but the reverse is not permitted

26. Contractual Agreements Eligible institution (U.S. Institution) is always the “home” institution Student must be continuously enrolled in eligible institution (U.S. Institution) as a regular (degree seeking) student U.S. institution must perform all Title IV functions Determine eligibility, COA and enrollment status Disburse funds

27. Contractual Agreements U.S. institution responsible for maintaining all records documenting student eligibility and receipt of Title IV funds Upon program completion, student must receive a degree from the U.S. institution May also receive a degree from the foreign institution

28. Contractual Agreements Limit on portion of program that may be offered by an ineligible institution Portion of program provided by ineligible institution must be less than 50% If there is no common ownership or control Portion of program provided by ineligible institution may be no more than 25% If both the eligible and ineligible institution are owned or controlled by the same partnership or corporation For separately owned or controlled institutions: If ineligible institution/organization provides more than 25% of the program, eligible institution’s accrediting agency or state agency must determine that the arrangement meets the agencies standards for contracting out of educational services

29. Contractual Agreements Other factors that may prevent a foreign institution participating in a written arrangement with a U.S. institution Ineligible institution/organization has had its eligibility terminated by ED Ineligible institution/organization has voluntarily withdrawn from the Title IV programs under termination, show-cause, suspension action initiated by ED, State licensing agency or guarantor Eligible institution (U.S. institution) has had its certification to participate revoked by ED Eligible institution (U.S. institution) had its application for certification or recertification to participate in the Title IV programs denies by ED

30. Unusual Enrollment Patterns NOT VERIFICATION – Separate Process Students identified based on history of receipt of Pell Grant New ‘C’ Code added to ISIR New Unusual Enrollment History Flag (UEH FLAG) added to ISIR Flag value will determine needed action Resolution guidance provided in DCL GEN-13-09 30

31. Unusual Enrollment History 31 Who? Pell-eligible applicants identified as having an “unusual” enrollment history (that may indicate a pattern of withdrawals just after receiving a credit balance) What? New C Code process and UEH Flag on SAR/ISIR In 2013-14, a 3 year review (2010-11, 2011-12, 2012-13) Where?Flag value determines action required by FAO When?Beginning with 2013-14 ISIR processing Why?To reduce fraud and waste in the Pell Grant program How?Guidance published in DCL GEN-13-09 - March 8, 2013

32. NSLDS will add edits to identify records with unusual enrollment histories and set a new NSLDS Unusual Enrollment History Flag Pre-Screening - Unusual Enrollment History Flag: 32 2013-2014 Unusual Enrollment History Flag Five flag values (N, Blank and 1- 3)

33. Values for the NSLDS Unusual Enrollment History Flag are described in the following table 33 2013-2014 Unusual Enrollment History Flag NSLDS Unusual Enrollment History Flag DescriptionSAR C Flag? SAR Comment 1For Federal Student Aid Use OnlyNoN/A 2Unusual Enrollment History 2 (Possible enrollment pattern problem, school may need to resolve) Yes359 3Unusual Enrollment History 3 (Questionable enrollment pattern, school must resolve) Yes360 NEnrollment pattern not unusual (No school action required) NoN/A BlankRecord not sent for matchNoN/A

34. NSLDS UEH Flag Comments ISIR/SAR comments and C Flag are generated for flags 2 and 3 Comment # SAR CommentSchool Action to include 359 Your school may request additional information to determine your eligibility for federal student aid. Note: This comment will generate a SAR C flag as already documented. If new school for applicant in 2013-14, school must take certain actions that will be developed by FSA and OPE policy. If not a new school, school not required to take action but may review the applicant’s enrollment history. 360 Based upon data provided by the National Student Loan Data System (NSLDS), your school will request additional information to determine your eligibility for federal student aid and before disbursement of funds can be made.“ Note: This comment will generate a SAR C flag as already documented. School must take certain enhanced actions that will be developed by FSA and OPE policy. 34

35. CPS will system-generate a new transaction with Reason Code 24 for records that have a change in the NSLDS Unusual Enrollment History Flag value after the initial pre-screening The new transaction will include the new value for the NSLDS Unusual Enrollment History Flag and a SAR Comment or C Flag as appropriate 35 2013-14 Unusual Enrollment History Post-Screening Reason Code

36. Unusual Enrollment Patterns Resolving Unusual Enrollment History Flags An institution must take the following steps to resolve an ISIR reported UEH Flag UEH Flag value is ‘2’: The institution must review the student’s records to determine if, during the three award year review period the student received a Pell Grant at the institution that is performing the review If yes, no additional action is required If no, the institution must follow the guidance that is provided for a UEH Flag of ‘3’ 36

37. Unusual Enrollment Patterns Resolving Unusual Enrollment History Flags An institution must take the following steps to resolve an ISIR reported UEH Flag  UEH Flag value is ‘3’: The institution must review the student’s records to determine if academic credit was earned at each of the institutions during the award(s) when the student received Pell Grant funds for enrollment at that institution. Academic credit is considered to have been earned if the academic records show that the student completed any credit hours or clock hours during the award year. 37

38. Resolving Unusual Enrollment History Flags Academic Credit Earned  If academic credit was earned at each of the previously attended institutions during the relevant award years, no further action required  If you can determine that a grade of “F” was an earned “F” at previous school, that is consider earned credit for UEH purposes 38

39. Resolving Unusual Enrollment History Flags Academic Credit Not Earned  If academic credit was not earned at a previously attended institution and, if applicable, at the institution performing the review, obtain documentation from the student explaining why the student failed to earn academic credit.  Determine whether the documentation supports (1) the reasons given by the student for the student’s failure to earn academic credit; and (2) that the student did not enroll only to receive credit balance funds. 39

40. Unusual Enrollment Patterns Approval of Continued Eligibility If FAA approves student’s continued eligibility, the FAA may choose to Require student to establish an academic plan Counsel the student about the Pell Grant duration of eligibility provisions[Lifetime Eligibility Used (LEU)] and time limitations on the receipt of Subsidized Stafford Loans Denial of Continued Eligibility If FAA denies student’s continued eligibility, the student must be provided with – An opportunity to question and appeal the decision AND information as to subsequently regain eligibility 40

41. UEH – Denial of Aid 41 Authority to Deny Aid Section 484(a)(4)(A) of the HEA of 1965 (as amended) and 34 CFR 668.32(h) requires the student to sign a Statement of Educational Purpose. By signing this statement, on the FAFSA, the student certified that he or she would use Title IV aid received only to meet educational expenses.

42. UEH & Graduate Students If a graduate/professional student has a UEH flag of 2, it should be treated as a UEH flag of 3 42

43. Federal Pell Grant Lifetime Eligibility Used (LEU) 43

44. Pell Grant LEU Limits the amount of Federal Pell Grant a student may receive over a lifetime to 600% of Scheduled Award Does not affect eligibility for any other Title IV program Has no impact on Direct Loan eligibility Eligible foreign institution may ignore all communications from ED as well as any ISIR indications relative to Pell LEU 44

45. QUESTIONS? 45

46. Contact Information Greg Martin gregory.martin@ed.gov 215-656-6452 FSA Foreign Schools Team FSA.Foreign.Schools.Team@ed.gov Phone : 202-377-3168 Fax: 202 -275-3486 Thank you for attending! 46