FINANCIAL AID OFFICE

2015-2016

POLICIES AND PROCEDURES MANUAL

TABLE OF CONTENTS 1. INSTITUTIONAL PHILOSOPHY .......................................................................................................4

2. OFFICE RESPONSIBILITIES RELATED TO THE ADMINISTRATION OF TITLE IV PROGRAMS .................4

3. CONFIDENTIALITY ........................................................................................................................6

4. STUDENT CONSUMER INFORMATION ..........................................................................................7

5. OVERVIEW OF FEDERAL METHODOLOGY (FM) .............................................................................7

6. PREPROCESSING FILES ....................................................................................................................7

A. ADDITIONAL INFORMATION REQUEST LETTER ................................................................................................. 7 B. WOU ADDITIONAL EDUCATIONAL EXPENSES FORM ......................................................................................... 7 C. MID-YEAR TRANSFERS ....................................................................................................................................... 7

7. STUDENT ELIGIBILITY ...................................................................................................................7

A. ADMISSION TO WESTERN OREGON UNIVERSITY .............................................................................................. 7 B. CITIZENSHIP ....................................................................................................................................................... 8

Documentation of citizenship ............................................................................................................................... 8 Automated Secondary Confirmation ..................................................................................................................... 8 Paper Secondary Confirmation ............................................................................................................................. 8

C. MID YEAR TRANSFERS ....................................................................................................................................... 9 D. NSLDS RESULTS FLAGS ....................................................................................................................................... 9 E. SATISFACTORY ACADEMIC PROGRESS (SAP) ..................................................................................................... 9 F. GRADUATION .................................................................................................................................................... 9 G. GRADUATE & POST-BACCALAUREATE STUDENTS’ REQUIREMENTS ................................................................. 9

Documentation of Graduate/2nd Undergraduate Degree/Teacher Licensure Program ...................................... 9 Preparatory Coursework ..................................................................................................................................... 10 Preprofessional Studies ....................................................................................................................................... 10

H. SELECTIVE SERVICE REGISTRATION ................................................................................................................. 10 I. VALID SAR/ISIR ................................................................................................................................................ 10

8. DEPENDENCY STATUS ................................................................................................................ 10

A. DOCUMENTATION OF DEPENDENCY STATUS .................................................................................................. 11 B. UPDATING DEPENDENCY STATUS ................................................................................................................... 11 C. STUDENTS WHO MARRY AFTER COMPLETION OF THE FAFSA ......................................................................... 12 D. DEPENDENCY OVERRIDES ............................................................................................................................... 12

9. BUDGETS AND PAYMENT PERIODS ............................................................................................ 12

A. ACADEMIC YEAR .............................................................................................................................................. 12 B. BUDGETS ......................................................................................................................................................... 12 C. EXPECTED FAMILY CONTRIBUTIONS (EFC) ...................................................................................................... 13 D. CHANGES TO A STUDENT’S BUDGET ............................................................................................................... 13 E. SUMMER SESSION AID .................................................................................................................................... 13 F. DISBURSEMENT AND PAYMENT PERIODS ....................................................................................................... 13 G. LATE DISBURSEMENTS .................................................................................................................................... 14 H. RETROACTIVE DISBURSEMENTS ..................................................................................................................... 14

10. FILE REVIEW POLICIES ............................................................................................................... 14

A. VERIFICATION POLICY...................................................................................................................................... 14 B. INSTITUTIONAL VERIFICATION ........................................................................................................................ 14 C. HOUSEHOLD SIZE AND NUMBER IN COLLEGE ................................................................................................. 14 D. TAX RETURN DOCUMENTATION ..................................................................................................................... 15 E. WIDOWED, DIVORCED OR SEPARATED INDIVIDUALS ..................................................................................... 16 F. CHILD SUPPORT ............................................................................................................................................... 16 G. MILITARY PERSONNEL, CLERGY AND OTHER HOUSING ALLOWANCE ............................................................. 16 H. INCOME EXCLUSION ........................................................................................................................................ 17

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I. IRA TREATMENT .............................................................................................................................................. 17 J. ASSET TREATMENT .......................................................................................................................................... 17 K. COMPLETING REVIEW OF THE FILE .................................................................................................................. 17 L. REJECT CODES ................................................................................................................................................. 17 M. DATA BASE MATCHES AND MATCH FLAGS .................................................................................................. 17 N. UNUSUAL ENROLLMENT HISTORY (UEH) .................................................................................................... 17 O. OUTSIDE RESOURCES .................................................................................................................................. 17 O. YEAR IN SCHOOL CHANGE ........................................................................................................................... 18

11. PROFESSIONAL JUDGMENT & SPECIAL CONDITIONS ................................................................... 19

A. BUDGET ADDITIONS FOR STUDENTS ............................................................................................................... 19 B. PROFESSIONAL JUDGMENT ADJUSTMENTS TO INCOME AND ASSET COMPONENTS ..................................... 20 C. VERIFICATION AND PROFESSIONAL JUDGMENT ............................................................................................. 21

12. FINANCIAL AID FUNDS ............................................................................................................... 21

A. PELL GRANTS ................................................................................................................................................... 21 B. FEDERAL TEACH GRANT .............................................................................................................................. 21 C. OREGON OPPORTUNITY GRANT ...................................................................................................................... 22 D. CAMPUS BASED AID ........................................................................................................................................ 22

Federal Work-Study ............................................................................................................................................ 22 E. WOU GRANT ..................................................................................................................................................... 22 F. DIRECT STAFFORD LOANS ............................................................................................................................... 22 G. ALTERNATIVE OR ALASKA LOANS ..................................................................................................................... 23 H. DIRECT LOAN LIMITS ....................................................................................................................................... 23

Direct Loan Proration for Less Than 3 Term Enrollment ..................................................................................... 23 Prerequisites........................................................................................................................................................ 24 Teacher certification ........................................................................................................................................... 24 Post Baccalaureate 2nd Undergraduate Degree .................................................................................................. 24 Preprofessional ................................................................................................................................................... 24 Endorsement or authorization only (for a teaching license) ............................................................................... 25

J. WESTERN UNDERGRADUATE EXCHANGE (WUE) PROGRAM .......................................................................... 25 K. DEADLINES ...................................................................................................................................................... 25

13. SPECIAL PROGRAMS .................................................................................................................. 25

A. STUDY ABROAD—REFER TO STUDY ABROAD POLICIES ................................................................................... 25

15. NOTIFICATION POLICY ............................................................................................................ 25

16. RETURN OF TITLE IV FUNDS .................................................................................................... 25

17. OVERAWARDS AND OVERPAYMENTS ..................................................................................... 25

17. SUSPECTED FRAUD OR IMPROPRIETIES ................................................................................... 26

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1. INSTITUTIONAL PHILOSOPHY The purpose of the Financial Aid Office is to administer the student financial aid programs according to federal, state, and institutional regulations and to provide monetary assistance to students who can benefit from further education. The Financial Aid Office ensures that funds are awarded in a consistent and equitable manner. The office offers financial counseling, and thorough financial aid consumer information. By providing service in a timely and service-oriented manner, the Financial Aid Office assists in the institution’s recruiting and retention efforts. The financial aid programs at Western Oregon University (WOU) are based on the concept that students (and their parents or spouse, if applicable) have the primary responsibility for paying for their post-secondary education. Financial aid is available to help fill the gap between the student’s potential resources and the cost of education. WOU tries to provide financial aid up to the student’s need level. Unfunded financial aid, such as WOU’s fee remissions, are available to eliminate or reduce tuition costs for selected groups of students, such as high academic achievers, low-income students, under-represented students and international students. Financial aid can be applied for by using the Free Application for Federal Student Aid (FAFSA) or other special applications. Approximately 79% of WOU’s undergraduate students receive some form of financial aid. The Financial Aid Office is part of the Academic Affairs Division and the Financial Aid Director reports to the Associate Provost.

2. OFFICE RESPONSIBILITIES RELATED TO THE ADMINISTRATION OF TITLE IV PROGRAMS

THE ADMISSIONS OFFICE IS RESPONSIBLE FOR THE FOLLOWING FUNCTIONS: • Reviews each admission application • Tracks and obtains high school transcripts, SAT/ACT scores, proof of GED completion and college transcripts • Classifies applicants as admitted or denied, resident, non-resident or Western Undergraduate Exchange (WUE) • Classifies applicants as non-admitted if the student indicates his/her enrollment is for other than obtaining a

certificate or degree • Determines an entering student’s class standing • Determines Presidential and Provost scholarship eligibility • Prepares WUE report THE REGISTRAR’S OFFICE IS RESPONSIBLE FOR THE FOLLOWING FUNCTIONS: • Determines student’s academic standing according to institutional policies • Collects students official withdrawal forms • Determines if a student has a program on file for a 2nd undergraduate degree program. The College of Education

certifies if students are in a teacher certification program and the Graduate Office confirms graduate programs. • Determines a student’s residency classification • Maintains on-line degree evaluation which shows credits completed toward degree and credits still needed for a

student to obtain his/her degree • Communicates and provides reports to the National Student Clearinghouse regarding enrollment verification • Prepares graduation packets for graduating students which includes loan exit counseling notifications • Veteran’s clerk provides information regarding education benefits • Processes grades at the end of each term, notifying the Financial Aid Office when grades are posted THE FINANCIAL AID OFFICE IS RESPONSIBLE FOR THE FOLLOWING FUNCTIONS: • Receives FAFSA data/results electronically from the federal processor • Performs all aspects of application review, documentation and verification including submission and retrieval of

electronic corrections

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• Develops estimated student budgets. Confirms estimated tuition and fees with Director of Business Services • Determines applicants’ eligibility for Title IV programs • Determines packaging policies • Notifies applicants of eligibility and amount of award • Determines loan eligibility • Monitors satisfactory academic progress • Calculates repayments for recipients who have withdrawn during the period of time Title IV aid was awarded

using “The Return of Title IV Aid”. Notifies the student by letter regarding the financial aid activity and obligation as a result of withdrawal.

• Conducts and records entrance counseling and exit counseling for Federal Direct Student Loans • Develops and provides Title IV consumer information • Develops and maintains office policies and procedures pertaining to student eligibility for Title IV aid • Develops and maintains information for the Financial Aid Web site • Maintains the information for the Student Inquiry Web Module • Draws down Oregon Opportunity Grant awards and private awards from the Office of Student Access and

Completion (OSAC) Web site • Submits disbursement activity electronically to OSAC • Prepares and transmits federal grant origination and disbursement reports to the U.S. Department of Education.

The disbursement reports are submitted within 14 days of the disbursement to the student. • Reconciles Pell, SEOG,TEACH Grant, Perkins Loan, Oregon Opportunity Grant, Direct Loan and other

expenditure accounts with the Business Office • Notifies the Business Office when official notices from the U.S. Department of Education are received such as the

Pell Grant Statement of Account and the Final Notice of Federal Funding • Coordinates outside resources and institutional scholarships with Title IV awards • Coordinates athletic aid with award offers and records information on the NCAA software program • Keeps the Program Participation Agreement current with the assistance from other offices at WOU • Prepares the grid and the backup information for the Business Office to use in preparing the FISAP for the

Department of Education. Provides our information on totals expended in the various federal programs after reconciling with the Business Office accounts

• Emails disbursement notification to students • Direct Lending Program

Awards Loans Prepares and sends master promissory note information Electronically originates loans and downloads resulting information Downloads web based loan entrance and exit counseling and electronic Master Promissory Note (MPN) Receive credit results on PLUS loans Electronically reports all disbursements within 14 days of disbursement Electronically reports all changes to direct loan awards and downloads resulting information Resolves any reporting problems such as disbursement/reconciliation problems with the Common Origination and Disbursement Center and Business Office Keeps abreast of U.S. Department of Education correspondence

• NSLDS Tracks mid-year transfer eligibility manually and by requesting a student be placed on the monitoring alert list

Reports grant overpayments and reports repayment of overpayments to NSLDS • Performs professional judgment decisions on student requests • Monitors outside resources paid on student accounts • Monitors and runs report of students and their special tuition rates, such as WUE, staff rates and transfer of staff

rates. • Classifies applicants as dually enrolled, if applicable • Monitors Federal Work Study(FWS) earnings throughout the year • Disburse aid after verifying enrollment status (i.e., full time, ¾ time, ½ time) 04/08/16 POLICY 2015-16.Docx 5

THE BUSINESS OFFICE IS RESPONSIBLE FOR THE FOLLOWING FUNCTIONS: • Processes student financial aid refunds • Federal Perkins Loan Program

Prepares, collects and maintains the Perkins promissory notes Provides Perkins Loan entrance and exit counseling sessions and information Administers the repayment portion of the program Provides Perkins award information to NSLDS including default information

• Assists in calculating repayments to the federal accounts as a result of withdrawal • Returns refunds to appropriate accounts • Collects overpayments • Federal Work Study Program

Maintains FWS Agreements • Completes and submits the annual FISAP report and any amended reports • Submits annual financial and compliance audits within specified deadlines • Reconciles federal and state aid accounts with the Financial Aid Office • Direct Student Loans

Processes PLUS loans according to parental request and transfers the funds to the appropriate person (parent or student)

• Determines funding needs and draws funds down • Provides the Financial Aid Office with periodic reports on the estimated availability of Perkins Loan Funds THE SERVICE LEARNING AND CAREER DEVELOPMENT OFFICE IS RESPONSIBLE FOR THE FOLLOWING FUNCTIONS: • Federal Work-Study (FWS) Program

Reconciles Federal Work-Study expenditures with the Payroll Office Provides information for off campus constituents regarding hiring practices Arranges off campus sites for community service jobs Provides off-campus FWS contracts Processes student time sheets and prepares payroll rosters Monitors earnings for all community service jobs

• Administers the Job Location and Development Program THE PAYROLL OFFICE IS RESPONSIBLE FOR THE FOLLOWING FUNCTIONS: • Federal Work Study Program

Collects I-9 documentation Processes payroll for FWS students Bills off-campus agencies for share of the payment for their FWS students

• Processes all name changes for employees and students

THE ASSOCIATE PROVOST FOR ACADEMIC AFFAIRS IS RESPONSIBLE FOR THE FOLLOWING FUNCTIONS: • Review of institutional scholarship criteria and award amounts will be reviewed with the Associate Provost • Complaints about the Financial Aid Office will be filed with this office

3. CONFIDENTIALITY Refer to 2015-16 Release of Confidentiality Information, Financial Aid Office Confidentiality and Security of Records available at the WOU Financial Aid Website (www.wou.edu/finaid), document library. 04/08/16 POLICY 2015-16.Docx 6

4. STUDENT CONSUMER INFORMATION Western Oregon University disseminates student consumer information through a variety of electronic, written and verbal means. Documents are available in alternative formats upon request. Links to student financial aid information is available on the WOU Financial Aid Webpage at: www.wou.edu/finaid 1. Information disseminated via telephone, at the front desk and on the Financial Aid Office website 2. One-on-one meetings with students (appointments) 3. Other outreach programs such as Preview Days, SOAR and Financial Aid Nights at local high schools 4. Information provided via email

5. OVERVIEW OF FEDERAL METHODOLOGY (FM) We will use FM for awarding student aid. We review the message codes provided on the ISIR, which indicate the conditions that could affect the financial need of a student. You will need to refer to the SAR/ISIR comments for resolution instructions.

6. PREPROCESSING FILES Student files will not be processed until the student has applied for admission to Western Oregon University.

For those students selected for verification, verification of data provided by parents/students on the Free Application for Federal Student Aid (FAFSA) will be done before awarding federal/state financial aid. Requests for documentation and verification materials will be sent or emailed on the additional information request letter.

A. ADDITIONAL INFORMATION REQUEST LETTER Student will be sent verification information with an additional information request letter when WOU receives notification that the application has been selected for verification, or we need additional information.

B. WOU ADDITIONAL EDUCATIONAL EXPENSES FORM A student can use this form to request that additional educational expenses be added to his/her budget such as commuting, childcare, computer, medical or dental expenses.

C. MID-YEAR TRANSFERS We will use the National Student Loan Data System (NSLDS) comments to verify that the student is not in default nor owes a refund and to review loan and grant history. Refer to Section 7 C NSLDS Monitoring.

7. STUDENT ELIGIBILITY

A. ADMISSION TO WESTERN OREGON UNIVERSITY Students must be admitted to Western Oregon University prior to receipt of their financial aid. Prior to each term’s fee payment the Financial Aid Office will identify all aid recipients who are not fully admitted and the students’ aid will not disburse. To receive FSA funds, a student must be qualified to study at the postsecondary level. Below is a summary of the qualifications:

1. has a high school diploma (this can be from a foreign school if it is equivalent to a U.S. high school diploma);

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2. has the recognized equivalent of a high school diploma, such as a general educational development or GED certificate; an academic transcript of a student who has successfully completed at least a 2 year program that is acceptable for full credit toward a bachelor’s degree; or documentation that the student excelled academically in HS

3. has completed homeschooling at the secondary level;

For students who attended college prior to July 1, 2012, in addition to the qualifications above, the following ATB options are also available:

1. has passed a Department-approved ability-to-benefit test; or

2. has satisfactorily completed six credits or 225 clock hours of college work that are applicable to a degree or certificate offered by the school.

B. CITIZENSHIP A student must be in one of the following citizenship categories to be eligible for the Federal Student Aid Programs.

• A U.S. citizen or national; • A U.S. permanent resident or other eligible noncitizen; • A citizen of the Freely Associated States: the Federated States of Micronesia and the Republics of Palau and

the Marshall Islands. These students can only receive aid from some of the FSA programs.

Documentation of citizenship All applications are automatically matched with Social Security records to verify name, date of birth, U.S. citizenship status, the social security number, and possible date of death. The result of this match is reported under SSA of the match flags on the ISIR and “SSA Citizenship Code” on the SAR. Acceptable documents If a student must document his or her status as a citizen or national, the student has to bring official documentation in person showing that he/she is an eligible citizen, national or eligible noncitizen. The school must decide what documentation is acceptable. If a photocopy is submitted, we will prepare a financial aid offer. However, aid will not disbursed until the student brings the official documentation to the Financial Aid Office.

Automated Secondary Confirmation If the database match with immigration records doesn’t confirm a student’s claim to be an eligible noncitizen, the Department of Homeland Security will automatically check if it has documentation that determines the student’s citizenship.

Paper Secondary Confirmation If the student didn’t pass automated secondary confirmation or if you have conflicting information about his/her immigration status, you must use paper secondary confirmation. If you determine that this documentation doesn’t provide reasonable evidence that the student is an eligible noncitizen, s/he isn’t eligible for Federal Student Aid funds. However, if the student provides documentation that appears to demonstrate that s/he is an eligible noncitizen, submit the documentation to the DHS to confirm that the documentation is valid. See the Federal Student Aid Handbook, Student Eligibility, Chapter: Citizenship, for further information.

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C. MID YEAR TRANSFERS If a student is a mid-year transfer student, the counselor will check the student’s NSLDS or COD record to see if the student has received loans or Federal grants at other institutions, has an overpayment of federal aid or has defaulted on previous student loans. This check occurs when the counselor reviews the completed financial aid file. This information is used to determine appropriate packaging for the student at WOU. When an NSLDS Transfer Monitoring Alert Review list is generated, the financial aid office receives an electronic notification. This notification is routed to a counselor who reviews the alert, NSLDS and current package to determine appropriate action. In general, a counselor will review each alert and determine if it relates to the student’s previous loans or grants and what affect, if any, it has on their current financial aid. The counselor will make the appropriate changes as necessary.

D. NSLDS RESULTS FLAGS To help schools determine if a student has problems such as defaulted loans, overpayments, or exceeded loan limits, the CPS matches the student’s application with the NSLDS database. Schools must resolve any conflicts between the NSLDS information and information received from the student. A “C” next to the student’s EFC indicates problems that must be resolved. The school must resolve these problems before disbursing aid. Federal Student Aid Handbook—Student Eligibility, Chapter: Overawards and Overpayments Transaction numbers will appear in the NSLDS section of the SAR/ISIR, which will help us identify when something has changed in a student’s NSLDS financial aid history. The transaction number will begin with 01, if the information is processed again and the history remains the same, the transaction will remain 01, but if there is a change the NSLDS transaction number will change to 02 and requires that we review the history again. See also ISIR Guide

E. SATISFACTORY ACADEMIC PROGRESS (SAP)

Refer to the Satisfactory Academic Progress Policy available at WOU’s website: www.wou.edu/finaid

F. GRADUATION Once a student receives an undergraduate degree or completes the requirements for a degree, the student can no longer receive aid as an undergraduate student. It is the student's responsibility to notify the Financial Aid Office when s/he graduates.

G. GRADUATE & POST-BACCALAUREATE STUDENTS’ REQUIREMENTS It is the student’s responsibility to follow his/her graduate program to avoid a possibility of financial liability for disbursement of aid for classes which are not included in the student’s planned program.

Documentation of Graduate/2nd Undergraduate Degree/Teacher Licensure Program 1. Only students in masters’ degree programs will be eligible for graduate loan limits. Master’s degree certification

can be used to document a student’s status as “independent.” 2. Students in basic/initial or standard/continuing licensure programs or in second undergraduate degree programs

will be eligible for maximum 5th year undergraduate loan limits. See chart below. These programs will not make a student “independent.”

3. Students in standard/continuing licensure programs may petition to have their additional tuition expenses added to their budget as they may pay graduate costs. They may or may not be working toward masters’ degrees.

4. If a student is in a master’s degree program and working on a standard/continuing teaching license, the higher program will be used for financial aid eligibility.

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Preparatory/prerequisite Coursework Students taking required preparatory coursework in order to enter a degree, certificate/licensure or professional programs may borrow according to the loan limits for the program they plan to enter. See Direct Loan Limits section for eligibility amounts. The student will need to complete the Program Verification Form listing the courses needed prior to admittance into the degree, certificate or professional program. The student must be admitted to Western Oregon University. The loan availability for preparatory coursework is valid for a maximum 12 month period of time.

Preprofessional Studies Preprofessional studies at WOU allow students to take coursework at WOU so that they can apply for the competitive admissions requirements at other universities to obtain a degree or certificate at other institutions. WOU does not offer a degree or certificate in preprofessional studies. Post-baccalaureate students enrolled in WOU's preprofessional studies are considered to be enrolled in a transfer program of study. As per Julie Arthur's 12/19/02 email (U.S. Department of Education, Region X), "I see no reason why this wouldn't be considered a transfer program of study, providing the lower division courses required for completion of a nursing degree at another college/university. I believe that you can treat students enrolled in these courses as students in their first two years of study in a degree program." Refer to the Direct Loan chart in section 12.

H. SELECTIVE SERVICE REGISTRATION “C” SAR codes indicating that Selective Service could not verify the student’s registration status will need to be cleared up. Counselors can check the Selective Service Website (www.sss.gov ) to confirm the student's registration status. In addition, male students that are registered can submit a copy of their Selective Service registration card. Students exempt from registration with Selective Service must document their exemption status. Refer to the Federal Student Aid Handbook on Student Eligibility for situations whereby a student is exempt. Male students 26 and over who didn’t register with Selective Service must:

• Submit the Selective Service Status Letter to the Financial Aid Office. He can write to the Selective Service to get a status information letter addressing his failure to register or download a request form from www.sss.gov to print out, complete, and mail.

• Provide as complete a description about his situation as possible: where he was living during the period when he should have registered (ages 18- 25), whether he thought he was registered and why he was not aware of the widely publicized requirement to register when he was 18-25.

When determining whether or not the student’s failure to register was knowing and willful and thus not eligible for financial aid, the FA counselor should refer to the Federal Student Aid Handbook—Student Eligibility, Chapter 5: Selective Service for guidelines.

I. VALID SAR/ISIR Non-verified applicants:

Prior to payment of federal financial aid, the Financial Aid Office must have an official and valid SAR/ISIR available to be electronically accessed by the WOU Financial Aid Office by the student’s last day of enrollment.

Verified applicants:

For Pell recipients selected for verification, the school must have verification documents and a valid output document no later than 120 days after the last day of enrollment or the date established by the Department of Education, whichever is earlier.

8. DEPENDENCY STATUS

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Dependency status is established by FM. The responses to the dependency questions on the FAFSA establish the student’s dependency status. A student who marks 'no' to all questions is considered dependent and must complete the student and parent sections of the FAFSA. Exceptions include dependency overrides. See Independent by Professional Judgment section.

A. DOCUMENTATION of DEPENDENCY STATUS Documentation will be requested for independent students (except for student's age) with the student's additional information letter. For returning students, check documentation in their file. Only documentation for one criterion on the FAFSA is required. See chart below for documentation of an independent student.

Criteria Documentation Age None

Married Copy of marriage certificate Graduate Documentation of admission from WOU’s Graduate Office. NOTE: students working toward

a post-baccalaureate 2nd UG degree or basic/initial or standard/continuing teacher certification and who do not meet any other criteria to be considered independent are considered dependent for financial aid purposes.

Active duty Copy of call to active duty for other than state or training purposes Veteran A VA database match will be conducted. If no VA match, veterans will be required to

document their veteran status by submitting a copy of their DD214 showing active duty other than state or training purposes and a discharge other than dishonorable. A student who is not a veteran but will be one by June 30, 2015 is also considered a veteran and should submit documentation that shows either an estimated date of discharge or call to duty papers.

Dependent (children or other)

Students with dependent children will complete a Documentation of Support for Dependent Children worksheet. A student expecting the birth of a child during the academic year can include the unborn child as a legal dependent if the student will provide more than half of its support. Students with other dependents must provide documentation.

Orphan/ward of court/foster care

Documentation such as parental death certificate, obituary, or court document

Emancipation Documentation of emancipation. This may be a court document confirming the emancipation status from the student’s state of legal residence at the time the decision was issued.

Legal Guardianship Documentation of Legal Guardianship. This may be a court document showing the appointment of a legal guardian from the student’s state of legal residence at the time the decision was issued.

Unaccompanied homeless youth or at risk of homelessness

Documentation from high school or school district; emergency shelter or housing program; or runaway or homeless youth basic center or transitional living program. Homeless means lacking fixed, regular & adequate housing. Unaccompanied means not living in the physical custody of your parent or guardian. Youth is 21 years and younger as of the day the FAFSA is signed. A student who cannot provide documentation may meet with the Director or Assistant Director and provide a letter if the student feels s/he is a self-supporting youth or individual at risk of homelessness.

Independent by professional

judgment

Students may be considered independent, but will need to have their dependency status assessed by the Director or Assistant Director. They will need to complete the Petition to Apply Without Parental Information and provide documentation of their exceptional circumstances. Documentation may include a statement indicating their present situation, court documents and/or letters from references aware of their situation. At least one document should be on agency letterhead. The parents’ unwillingness to assist the student, in and of itself, will not be grounds for a dependency override.

B. UPDATING DEPENDENCY STATUS A student must update his or her dependency status if it changes at any time during the award year (unless it changed because of a change in the student’s marital status). Dependency status must be updated regardless of whether the student was selected for verification.

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If a student is not independent due to other factors, the student must make corrections to his/her FAFSA providing parental information and a parent’s signature. Federal Student Aid Handbook—Application and Verification Guide, Chapter: Corrections, Updates, and Adjustments

C. STUDENTS WHO MARRY AFTER COMPLETION OF THE FAFSA Students who marry after filing the FAFSA

1. Review the student’s situation to see if other factors may make the student independent, such as having dependents including an unborn child due during the school year, the student is in a graduate program, etc. If not, and the student wants to be considered an independent student:

a. S/he must submit a copy of their marriage license and must submit verification documents for the student and spouse

b. The student cannot make changes to the FAFSA; the Financial Aid Office will make the updates

D. DEPENDENCY OVERRIDES

1. Dependency overrides can be made on the FAFSA by the Financial Aid Administrator (FAA). 2. Dependency corrections can be made electronically if the student has already filed the FAFSA. 3. Renewing Independent by Professional Judgment Status. Continuing WOU students who have previously

filed petitions to file without parental information may update their status by completing a “Petition to Reapply for Financial Aid as an Independent Student.”

4. Students who were previously determined to be homeless or at risk of homelessness will need to provide a written statement updating their current situation.

9. BUDGETS AND PAYMENT PERIODS

A. ACADEMIC YEAR

Western Oregon University operates on the quarter system. For all Title IV aid, the academic year is 36 credits. Prorated loans will be based on 36 credits per academic year.

B. BUDGETS Initially, all students will be awarded at fulltime enrollment. Students can notify the Financial Aid Office if they will not be attending full-time. Summer session will be added to a student’s financial aid package after the student completes the Summer Session Financial Aid Request form. See Summer Session Aid section.

Less than 3 terms

For a student attending less than three full time terms, the counselor may award the student for three full time terms to determine the three term financial aid eligibility. The counselor will then adjust the aid and budget according to the number of terms of attendance. Or pro-rate by hand using the packaging policy.

Less than full time

Students attending less than full time for three terms--fall, winter and spring terms--may need to be awarded manually. Depending on availability of campus based aid, on-time students attending less than full time will be awarded Federal Work-Study, Federal Perkins Loan, Federal SEOG and/or WOU Tuition Grant.

Less than half time

A student attending less than half time is not eligible for the Federal Direct Loan. The student’s cost of attendance can only include: tuition and fees; books and supplies; transportation (but not miscellaneous expenses); a limited amount of room & board; and dependent care expenses (The Federal Student Financial Aid Handbook—Calculating 04/08/16 POLICY 2015-16.Docx 12

Awards and Packaging, Chapter: Cost of Attendance (Budget)). Initially, WOU awards Campus Based Aid (CBA) to half time students and greater because of the limited funds. However, if a less than half time student requests CBA, the student may be awarded based on his/her eligibility and aid availability.

C. EXPECTED FAMILY CONTRIBUTIONS (EFC) Alternative EFCs for other than 9-month enrollment If a student is enrolled for less or more than 9 months, the contribution is calculated automatically on PowerFAIDS.

D. CHANGES TO A STUDENT’S BUDGET It is the student’s responsibility to keep the Financial Aid Office informed of any changes in housing, commuting or other factors that affect the student’s budget. WOU’s Financial Aid Office will use the student’s self-reported information and will update when the student informs us of any changes. Refer to Professional Judgment and Special Condition section for more information on budget additions.

E. SUMMER SESSION AID

Summer session is considered a trailer term. The summer budget is an “add-on” POE and included on Academic Year Profile (based on the number of credit hours the student reports on the Summer Session Financial Aid Request Form). We combine the summer sessions into one eight week session. The EFC is calculated by PF and is based on the number of months the student is enrolled.

We will award summer session based on the student's Summer Session Request Form. Students attending summer will have their loan award based on his/her year in school standing. Budget additions for commuting, childcare and excess tuition costs are added based on Professional Judgment (PJ). As per PJ, a counselor may adjust the cost of attendance if student is attending more than eight weeks. Students attending the pre-session summer classes will have their aid disbursed during the first day of disbursement. Aid will be disbursed after the student is registered for the appropriate number of credits. Justification for Budget Items: Tuition and Fees: Tuition and fees will be based on the number of credits reported on the Summer Session Financial Aid Request Form. Room and Board: The budgets include room and board based on 8 weeks of enrollment. Books and Supplies: The same as for the regular academic year term. Transportation and Miscellaneous: Transportation and miscellaneous expenses are prorated from the regular academic year budget based on 8 weeks in summer session.

F. DISBURSEMENT AND PAYMENT PERIODS

Since Western Oregon University is on the quarter system, aid is disbursed at the beginning of each term for which it is intended with the exception of Federal Work-Study. Federal Work-Study is paid to participating students monthly based on the number of hours they worked in the payroll period. In rare instances, such as internships, student teaching and study abroad, students may be able to pay their fees early if they make special arrangements with the Business Office. Disbursement can be made no earlier than 10 days before the start of the term’s classes.

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G. LATE DISBURSEMENTS Generally, an otherwise eligible student or parent becomes ineligible to receive Federal Student Aid funds on the date that the student: • for a loan made under the Direct Loan program, is no longer enrolled at the school at least half time: or • for purposes of the following Federal Programs: TEACH Grant, Pell Grant, SEOG and Perkins Loan, the student

is no longer enrolled at the school for the payment period or period of enrollment as applicable. However, if certain conditions are met, the student must be considered for a late disbursement after the date they became ineligible. For additional information, refer to the Federal Student Aid Handbook for more information.

H. RETROACTIVE DISBURSEMENTS A retroactive payment will be made for completed payment periods in the award year if the student was eligible for payment in those periods. Refer to the Federal Student Aid Handbook for more information.

10. FILE REVIEW POLICIES

A. VERIFICATION POLICY Western Oregon University will verify all applicants who are selected by ED (and have applied for admission and have a completed file) prior to awarding and disbursing aid if the applicant was originally chosen for verification (with the exception of the verification exclusions). Students will receive notification of aid changes due to verification via email from the WOU Financial Aid Office. The verification groups will receive individual documentation requests based on the required verification items.

B. INSTITUTIONAL VERIFICATION

Counselors, as per professional judgment, may choose other applicants for verification.

C. HOUSEHOLD SIZE AND NUMBER IN COLLEGE 1. Unlike dependency status, the household size or number in college cannot be updated unless the student is

selected for verification. For applicants selected for verification, these items must be updated to be correct at the time of verification.

2. A student’s household size generally includes any persons who are dependents of, or who receive more than ½ of their support from the student’s household. Refer to the Federal Student Aid Handbook—Application and Verification Guide, Chapter: Verification,* and check with the Assistant Director or Director if uncertain.

3. If a dependent student’s sibling is considered to be “independent” for financial aid purposes (he or she is at least 24 years old, a veteran, etc.), but nonetheless receives more than half of his or her support from the dependent student’s household, the “independent” sibling should be included in the dependent student’s household size. (NASFAA Newsletter 3/25/96). The dependent student may submit documentation verifying that the independent student is receiving at least half of their support within the dependent student’s household.

4. A person can also be left in the household size if it is explained that the person cannot care for him/herself and needs to be cared for--for example, someone who is ill, elderly, siblings, or a child who cannot find employment or is under employed. A review of previous years' files may give a reason why a person should be left in the household.

5. Student living with partner (not married). Generally, roommates or significant others such as a fiancé, will not be included in the student’s household. However, if the student can document that s/he is providing more than one-half of the other person’s support and will continue to do so during the school year (as per federal financial aid guidelines), the other person may be included in the household.

6. Married not living together and maintaining separate households. This situation would be reviewed on an individual basis.

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7. Legal parents living together but never married would provide information about both of them regardless of gender.

8. Divorced or separated parents living together would provide information about both parents. 9. Siblings (including stepsiblings) should be included in the dependent student’s household if the parents provide

more than half of their support or if the sibling is considered dependent on own FAFSA. 10. If clarification is needed for documentation of a student providing more than half of the support of another

individual, the student may complete a Documentation of Support for Dependent form or provide other supporting documentation.

11. If siblings or parents (if dependent) or spouse (if independent) will attend WOU and have FAFSAs on file, compare the applications. If the FAFSA information is inconsistent, a follow-up is necessary.

12. Verifying other household members in college: for federal aid purposes, an applicant may include individuals other than parents who are counted in the household size and who will be attending a post-secondary institution at least half time (6 credit hours per term for at least one term or 12 clock hours per week) between July 1 and June 30. Such students must be working toward a degree or certificate leading to a recognized educational credential at an eligible Title IV school.

13. Parent in college. In most circumstances, there will be no adjustment for a parent in college. If there are unusual circumstances why the parent must attend college (layoff, for example), we may consider a parent in college. The family will be sent a form to document parent’s attendance. If approved, we will reduce the parent’s AGI by the amount of tuition paid. We will not change the number in college to include the parent.

14. Single parent who is married at the time of verification. The parent should be treated as married and the household size should be updated.

*Federal Student Aid Handbook—Application and Verification Guide, Chapter: Corrections, Updates, and Adjustments

D. TAX RETURN DOCUMENTATION

Tax Return Documentation 1. IRS Data Retrieval tool. If the tax filer makes no changes when using the IRS DRT, it is acceptable

documentation. 2. IRS tax transcript. W-2 statements must be collected if the wages on the IRS transcript do not match the FAFSA.

Tax Filing Extensions

1. If a filer has filed for an automatic extension from the IRS, alternative tax documentation may be accepted. Along with the verification worksheet, the filer must submit:

a) a copy of IRS Form 4868 (Application for Automatic Extension of Time to File U.S. Income Tax Return—

automatic 6 month extension) or a copy of the IRS approval of an extension beyond the six month extension. b) copies of all W-2 forms, or c) If self-employed, a signed statement with the anticipated amount of Adjusted Gross Income (AGI) and U.S.

income taxes paid.

After the tax return has been filed, the filer must either use the IRS DRT or submit an IRS transcript.

2. Amended tax return. If an individual filed an amended IRS income tax return for tax year 2014, provide both of the following:

a) A 2014 IRS Tax Return Transcript for the 2014 tax year; and b) A signed copy of the 2014 IRS Form 1040X, “Amended U.S. Individual Income Tax Return,” that was filed

with the IRS and has a date stamp from the IRS showing date received.

Non Tax Filers with Income above IRS Filing Guidelines

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An individual who indicates that s/he is a non-tax filer but it appears from the income that a tax return should have been filed will need to provide clarification. Documentation may be requested to confirm that the individual did not file and was not required to file. The documentation would be letter 1722 from the IRS indicating the individual was a non-filer and a memo on letterhead from an accountant documenting that the individual was not required to file.

Tax Filing Status Generally, married individuals cannot file as “head of household.” Follow-up with the individual(s) is necessary. You can refer to the IRS filing status at www.irs.gov.

Exemptions Follow-up is required if a student claimed him/herself and was also claimed by someone else.

Acceptable Documentation IRS Data

Retrieval Inst Verif

Doc Other Documentation

Household Size X Signed statement Number in College X Signed statement or institutional certification AGI and Taxes Paid X Tax return transcript, copy of the tax return, Form W-2, Form

4868, or a signed statement Untaxed Income & Benefits

X Tax return transcript, copy of the tax return, Form W-2, Form 4868, or a signed statement

SNAP Benefits X Signed statement or agency documentation Child Support Paid X Signed statement Income Earned from Work for non-filers

X Signed statement and Form W-2

High School Completion

X High school diploma or transcript, GED certificate or transcript, transcript showing 2-year program completion, or home school credential or transcript

Identity/Statement of Educational Purpose

X Original government-issued ID & signed statement of educational purpose or a copy of that ID and the statement notarized

Refer to: Federal Student Aid Handbook—Student Eligibility, Application and Verification Guide, Verification, Updates and Corrections for additional information.

E. WIDOWED, DIVORCED OR SEPARATED INDIVIDUALS For divorced or separated individuals (at the time the FAFSA was completed) who filed a joint federal tax return, a tax return transcript and W-2 statements are required. If the W-2s are not available, a written statement may be accepted. As per professional judgment, the counselor may count ½ of other taxable income or deductions as part of the individual’s adjusted gross income after reviewing the rest of the tax return and unless the individual states otherwise. To determine the individual’s taxes paid, take the percentage of total AGI that was the individual’s and multiply that percentage by the taxes paid.

F. CHILD SUPPORT Child support for a dependent student should be listed under parents’ information. Child support given to an independent student from a parent must be listed as “untaxed income.”

G. MILITARY PERSONNEL, CLERGY AND OTHER HOUSING ALLOWANCE Housing subsidy (the amount or value) for military personnel, clergy and others who receive housing allowances as part of a job benefit should be reported as untaxed income. 04/08/16 POLICY 2015-16.Docx 16

H. INCOME EXCLUSION

Students and parents reporting Title IV income exclusions may need to verify that amount by completing the verification worksheet.

I. IRA TREATMENT Tax filers whose income tax returns include IRA “rollovers” will have the rollover amount excluded from the need analysis formula as per federal regulations. Income tax returns with an IRA “converted” to a Roth IRA will be treated differently. As per professional judgment, the FA counselor may exclude the IRA reported as taxable income from the AGI as this amount is actually put into the new Roth IRA. The Roth IRA must be reported as taxable income and taxes are paid on it at the time (year) of conversion, per tax laws. The tax filer would need to request a review of their Roth IRA and must submit documentation which could include a copy of their IRS form 8606 and 1099 plus a letter from the company holding the Roth IRA explaining the transaction.

J. ASSET TREATMENT 1. Trusts

If the student indicates he or she has a "trust," it is counted as a student asset even though it may not be available to the student during the academic year.

K. COMPLETING REVIEW OF THE FILE 1. The counselor will review the file, record the date reviewed in Custom Data on PowerFAIDS and package the

financial aid awards.

2. Students who attend less than 3 terms must be manually packaged. They are still eligible for campus based aid if all eligibility criteria are met. Refer to Direct Loan section for information regarding proration for seniors.

L. REJECT CODES

Reject codes can be either alpha or numeric. Alpha codes indicate reject reasons that are verifiable—that is, the student can verify the questionable data by re-entering the same value, or can correct it to a different value. Numeric codes are not verifiable—the questioned data must be changed or provided. In all reject situations, the questioned information is highlighted on the SAR and an EFC is not calculated. Reject codes and reasons, and their associated SAR comment codes are listed in Appendix A in A Guide to SARs and ISIRs.

M. DATA BASE MATCHES AND MATCH FLAGS A flag of “C” is an indicator that institutional resolution is required. The “C” flag will be printed on the SAR next to the EFC if any of the conditions in the ISIR Guide are met.

N. UNUSUAL ENROLLMENT HISTORY (UEH) A flag of “C” that indicates the student has been identified as having an “unusual enrollment history” (UEH) needs to be reviewed. If the comment code is 359, review to see if the student received a Pell Grant and, starting with the 2015-16 award year, Direct Loans at WOU during 2011-12, 2012-13, 2013-14, or 2014-15. If so, note on the comment screen and no further review is necessary. If the student did not receive a Pell Grant or Direct Loan at WOU during any one of those years or, has a comment code 360, you must review NSLDS and the student’s academic transcripts from other institutions attended to verify that credit hours were earned.

O. OUTSIDE RESOURCES

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1) Types

a. Private scholarships • Self-reported scholarships will be counted as a student resource when packaging. • Review files for any continuing scholarships.

b. Student reported WOU Scholarships

• Do not put on as a WOU scholarship unless we have confirmation of the award. An exception can be made for student reported WOU athletic scholarships which may be added as an estimated scholarship until official notification is received from the Athletics Department.

c. Resident Assistant (RA) and Hall Director benefits

• Use their room & board as a resource. Stipends will not be counted as a resource as it is taxable income for their work and will be included in their AGI.

d. 529 savings plans

• The 529 plan is reported as a parental asset if the student is dependent for financial aid purposes and the owner of the 529 account is either the parent or dependent student. The 529 plan is reported as a student asset if the student is independent for financial aid purposes and the student is the owner of the 529 account.

• Distributions are not considered a resource. e. Other resources

• Vocational Rehabilitation, Interpreting Fee Remission, Graduate Assistantship fee remissions, etc., are counted as a resource when packaging.

f. Alaska Loans

• These loans will be considered non-need based aid when packaging. 2) Adjustment to financial aid package NOTE: The order of financial aid adjusted may change due to funding availability.

a. Students receiving outside resources will have their financial aid adjusted in the following order: 1) Replace any unmet need 2) PLUS and Direct Unsub Stafford loans used to cover unmet need 3) Direct Subsidized Stafford Loans 4) Perkins Loan or Federal Work-Study 5) TEACH Grant

6) SEOG 7) WOU Tuition Grant b. If the student picked up the Stafford Loan prior to the institution’s notification of the scholarship/resource, the

file will be reviewed on an individual basis to determine if already disbursed loans need to be adjusted. c. If the addition of the scholarship results in a reduction of the Direct Subsidized Stafford Loan, the counselor

may award additional Direct Unsubsidized Stafford Loan, if eligible. d. Private loans can be used to replace the expected family contribution.

O. YEAR IN SCHOOL CHANGE 1) Original packaging

Students will be initially packaged according to the year in school reported on their FAFSAs or based on the credit hours earned (counselor discretion).

2) Revisions During the summer, each student's total credit hours will be compared to the year in school reported on his/her FAFSA.

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a. If a student has more credits than the year in school reported on the FAFSA, the student will be repackaged according to WOU's packaging policies.

b. If a student has fewer credits than the year in school reported on the FAFSA, his/her Direct Loans will be reduced. Campus-based aid will not be revised. The rationale for this is that either the transfer credits are not showing up yet on WOU's records or the student will advance to the next year in school during the school year.

11. PROFESSIONAL JUDGMENT & SPECIAL CONDITIONS

A. BUDGET ADDITIONS FOR STUDENTS

A student may request in writing to have his or her additional educational related expenses added to the budget. Counselor should complete Additional Budget Expense sheet, then attach it to the student’s written request and documentation, and staple in back of wrap. • Commuting costs. Commuting costs can be allowed if the student petitions. Counselor can use an internet

travel website to estimate student’s commuting distance or use student's stated distance. Calculate the commuting cost based on the current mileage allowance and submit the transportation charges (1/3 of transportation/miscellaneous expenses in the budget) to determine the additional commuting expenses.

2. Study abroad, foreign study or National Student Exchange. Actual or estimated travel costs and any additional

program costs may be added to the budget. Use the program’s cost as provided by the Study Abroad or International Education Offices, other WOU offices or the OUS and subtract WOU’s cost of education for that period from the study abroad program cost and add the difference to the student’s budget.

3. Medical/dental expenses may be considered. The student must supply documentation of medical bills.

Documentation may also include student’s Schedule A from their Federal 1040 form. In addition, a note from the doctor or hospital indicating the student’s minimum monthly payments (for the academic year) will be accepted. We will consider medical expenses in excess of 11% of the Income Protection Allowance (IPA) as the IPA already includes 11% as medical/dental expenses.

4. Documentation of health insurance may be added to a student’s budget.

Student must submit documentation of his/her health insurance premium costs (private insurance or WOU policy). We may use WOU’s per term rate for all students or the actual documented outside costs.

5. Child care 0 - 12 years of age. If a student requests a child care allowance, use the childcare allowance

determined when annual budgets are set-up.

Students attending on a less than full-time basis will have child care allowances adjusted as follows:

UNDERGRADUATE: GRADUATE: 3/4 time (9-11 credits) 75% 3/4 time (7-8 credits) 75% 1/2 time (6-8 credits) 50% 1/2 time (5-6 credits) 50% Generally, when a student is married and spouse is also in college, use 1/2 of child care allowance for each student that is not provided by other individuals or agencies. In some instances, per professional judgment, all of the child care expenses can be added to the student’s budget and not to the spouse’s budget.

6. Disability related expenses. Use an allowance for expenses reasonably incurred related to the student’s disability

and not provided for by other agencies. 7. The only additions made to books, supplies or fees include the rental or purchase of supplies required of all

students in the same course of study.

It is suggested that the student provide documentation of the supplies purchased during the academic period so the counselor can determine if the materials exceed the budget already provided.

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8. Only expenses related to completing the student’s course of study at the institution may be included in the cost of

attendance. Expenses related to post-enrollment activities may not be included. 9. Costs for the first professional credential or licensure may be included in the cost of attendance. Cost must be

incurred while enrolled. Credential or licensure must be required by state or commonly required for employment. Does not include preparatory courses unless part of the program.

10. The FA administrator has the authority to use professional judgment to adjust the cost of attendance for the financial aid programs on a case-by-case basis to allow for special circumstances. Adjustments will be documented.

11. Computer costs. As per professional judgment and with a written request and documentation from the student, a

onetime computer cost may be added to the student’s budget. This will be done on a case-by-case basis and will be limited to a maximum amount set annually by the Financial Aid Office.

12. Additional tuition and fees cost. An average cost of tuition and fees (15 credits for undergraduate students and 11

credits for graduate; for summer session 12 credits for undergraduate and 9 credits for graduate students) is used in determining the cost of attendance. Students enrolled for credits above the average may have the additional expense added to their budget.

B. PROFESSIONAL JUDGMENT ADJUSTMENTS TO INCOME AND ASSET COMPONENTS

Student should complete WOU’s Special Condition Form explaining the unusual circumstance. The counselor should use discretion when determining whether to use the student's projected summer and academic year income or projected year income. If a student has been selected for verification, verification must be completed and the changes transmitted to CPS before the special condition changes can be processed. The following are some examples that the Financial Aid Office may consider for a special condition or base year change:

1. Loss of job or significant reduction in income. This may be due to a number of factors including layoff, retirement, disability or a severe cut in pay. As per professional judgment the counselor may use projected income.

2. Loss or reduction of untaxed income. The untaxed income or benefit may be from a public or private agency, from a company, or from a person because of a court order. (Don't include loss of veteran’s educational benefits.) Untaxed income and benefits include things like: child support; untaxed retirement or disability benefits.

3. Divorce or separation. For divorced or separated individuals who filed a joint federal tax return, use W-2 statements to determine the individual’s wages. If the W-2s are not available, a written statement may be accepted. As per professional judgment, the counselor may count ½ of other taxable income or deductions as part of the individual’s adjusted gross income after reviewing the rest of the tax return and unless the individual states otherwise. To determine the individual’s taxes paid, take the percentage of total AGI that was the individual’s and multiply that percentage by the taxes paid.

4. Death. If a dependent student’s parent or independent student's spouse has died since the FAFSA was completed, per professional judgment, a change to income may be done. The counselor may use the surviving spouse's income only. Calculate AGI and taxes paid as in #3 above. Use counselor discretion in determining what is best for the student.

5. Inability of student to provide expected student contribution. If the student’s earnings for the school year or academic year are substantially lower than the previous year, the student can petition for a recalculation of his/her contribution based on projected income.

6. Medical/dental expenses. Individuals must supply documentation of medical bills. Documentation may also

include Schedule A from the Federal 1040 form. In addition, a note from the doctor or hospital indicating the minimum monthly payments (for the academic year) will be accepted. We will consider medical expenses in excess of 11% of the Income Protection Allowance (IPA) as the IPA already includes 11% as medical/dental

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expenses. For dependent students we will subtract the allowable parents' expense from the parents’ AGI if parent is paying the expense. For independent students (or dependent student paying own expenses) we will add the allowable expense to the student's budget.

7. Some expenses, such as a business related bankruptcy, which require monthly payments for taxes may be

considered. Use professional judgment. 8. Other unusual circumstances may be reviewed by the counseling staff and a determination can be made by

consensus.

Making professional judgment changes Professional judgment changes to the FAFSA data elements will be made electronically. On PowerFAIDS, you will need to go to FM Data, Data Resolution, and mark “Request EFC Adjust” to “Yes”. A revised SAR will be available to the student.

C. VERIFICATION AND PROFESSIONAL JUDGMENT When reviewing a file that has a special condition form and the student has been selected for verification and verification has not been completed, you will need to do the verification first. The verification corrections must be submitted to the CPS. You can submit the professional judgment changes to the CPS based on the special condition request after verification has been processed.

12. FINANCIAL AID FUNDS

A. PELL GRANTS Pell Grants will initially be disbursed based on the number of credit hours the student is enrolled in through the end of the 2nd week of the term (census date). If the student’s enrollment has changes at the financial aid census date, the student’s financial aid eligibility will be recalculated based on the number of credit hours at the census date. If the student drops hours after the census date, his/her Pell Grant will not be revised (pending documentation of class attendance). If a Pell Grant is disbursed is for a retroactive payment for a previous term, eligibility for the Pell Grant is based on the number of earned credits. Documentation of class attendance must be proven for F, X or W grades.

B. FEDERAL TEACH GRANT The TEACH grant is available to WOU education and pre-education majors. The grant amount is up to $4,000 annually (reduced by sequestration each year, 2015-16 results in a 7.3% reduction or a maximum award of $3,708) and is not based on financial need. Students who receive a federal TEACH Grant must complete a service obligation by serving as a highly-qualified teacher in a designated high-need field at a low-income school for four years within eight years of completing a TEACH Grant eligible program or cease to be enrolled in an eligible program. Failure to complete teaching service will result in the TEACH Grant being converted to an unsubsidized Stafford loan with retroactive interest. The TEACH grant is available at any enrollment status with a pro-rated award amount. Students must complete a separate application from WOU annually to apply for the TEACH grant. Students must complete a federal Agreement to Serve (ATS) annually which is only available online at www.teach-ats.ed.gov. Students must maintain a 3.25 WOU cumulative GPA to continue eligibility for the TEACH grant. GPA is monitored every term of the TEACH Grant to determine eligibility for the next term. For students new to WOU, their most recent applicable GPA will be used to determine initial eligibility for the TEACH Grant until a WOU GPA is established. Use the cumulative high school GPA for new freshman applicants, college transfer GPA for new transfer students and undergraduate GPA for new graduate students. Students in a graduate program or seeking an initial Bachelor's degree can qualify for the TEACH Grant at WOU; students completing the teacher licensure program as a post-baccalaureate 04/08/16 POLICY 2015-16.Docx 21

student are not eligible for the TEACH grant at WOU. If a student scores above the 75th percentile on one battery of a nationally normed admission test, the student always meets the academic criteria to qualify for the TEACH grant and the student GPA need not be monitored further for TEACH grant disbursement purposes.

C. OREGON OPPORTUNITY GRANT If a student is eligible for an Oregon Opportunity Grant, as determined by the Office of Student Access and Completion, the student may receive it for a maximum of 12 terms including Oregon Opportunity Grants received at other institutions. This grant may be funded for students attending at ½ time or greater status.

D. CAMPUS BASED AID Federal Work-Study, Federal Perkins Loan, and Federal SEOG will be awarded to ½ time or greater students. Less than half-time students may be eligible to receive CBA.

Federal Work-Study Federal Work-Study (FWS) funds can be earned during the summer, beginning July 1, and throughout the academic year until graduation (commencement). Work-study earnings from the summer should be saved for academic year expenses and do not reduce the amount of expected student contribution.

E. WOU Grant The WOU Grant (formerly the Supplemental Tuition Waiver) is awarded to eligible Oregon resident undergraduates. It is based on financial need and FAFSA priority date.

F. DIRECT STAFFORD LOANS Scheduled Academic Year WOU is using the Scheduled Academic Year (SAY) to determine loan maximums. Students attending summer session will have their summer session loan included in the academic year total. Dropping or Withdrawing From Some Classes 1. If a student has dropped below half-time before aid is disbursed, the student is NOT eligible for the loan. 2. If a student has withdrawn from some classes but is half- time or more, the student may receive their Direct

Stafford Loans based on the census date calculation.

Originating Federal Direct Loans Loans cannot be originated after the loan period is over. The loan must be originated (sent electronically to the Common Origination Disbursement (COD) Center) prior to the end of the loan period. Increases to Direct Loan amounts due to additional costs To increase an already originated loan the counselor has these options: A. Increase the original loan. B. Increase the remaining disbursements (i.e., winter & spring). C. Create a new one-term loan. For example, the counselor could create a new fall-only loan. Revised Loan Eligibility Due to a Reduction in Need or COA If a student has subsidized Stafford Loan eligibility when originally awarded and then a change reduces the amount of Stafford Loan eligibility, the counselor must determine if an overaward situation has occurred. See section #16 OVERAWARDS and OVERPAYMENTS.

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Loan Eligibility for Transfer Students The counselor will check NSLDS or COD for any loans received at previous institutions for the year. See NSLDS Monitoring in the Student Eligibility section for more information. Additional Eligibility for Federal Direct Unsubsidized Loans A dependent undergraduate student who has borrowed the annual maximum student loans can borrow an additional federal unsubsidized loan (Supplemental Unsubsidized Stafford Loan) at Western Oregon University under the following circumstances: A. The parent (or stepparent if their financial information would be used on the FAFSA) applied for a PLUS loan

and was denied because of an adverse credit history or other exceptional circumstances. The student needs to notify the WOU Financial Aid Office if s/he wishes to pursue an Unsubsidized Stafford Loan. The parent needs to notify us that s/he will no longer pursue applying for the PLUS loan. We will then cancel the PLUS and award the additional unsubsidized loan (Supplemental Unsub).

B. If a parent has no adverse credit history, WOU may consider other exceptional circumstances for additional unsubsidized loan eligibility. Some examples of exceptional circumstances include a student’s parent receives only public assistance or disability benefits, the parent(s) are incarcerated, the student’s parent(s) has filed bankruptcy and can provide court documentation showing that they cannot incur any more loan debt, or if the parents are non-citizens. It is the student’s responsibility to initiate these requests. Refer to the FSA Handbook for additional information.

A parent’s refusal to borrow a Federal PLUS Loan or a parent’s preexisting consumer debt does not constitute

“exceptional circumstances.” The school’s decision on a professional judgment for additional unsubsidized loan eligibility is final and cannot be appealed to the U.S. Department of Education. If a dependent student is not eligible for a federal additional unsubsidized loan, the student may apply for an alternative student loan. The alternative student loan can replace the parent or student contribution.

G. ALTERNATIVE or ALASKA LOANS There is information available in the Financial Aid Office or online for students interested in pursuing alternative loans. These loans will be treated like unsubsidized loans and can be used to replace some or all of the contribution. The total of all financial aid including alternative loans may not exceed the cost of attendance.

H. DIRECT LOAN LIMITS The annual loan limits vary depending on the student's year in school and his/her degree or certificate program.

Direct Loan Proration for Less Than 3 Term Enrollment This is required for a graduating senior or second undergraduate degree student (if in the last year of the program) attending less than three terms. It is not required for freshmen, sophomores, juniors, graduate students, prerequisite coursework or teacher licensure programs.

Year in School Base Addt'l Unsub UG/PB Direct Loan Annual Limits Sub/Unsub Addt'l Unsub Ind or Dep no PLUS elig TOTAL

Freshman (0-44 credit hours) $3,500 $2,000 $4,000 $9,500 Sophomore (45-89 credit hours) $4,500 $2,000 $4,000 $10,500 Junior/Senior/PB (90+ credit hours) $5,500 $2,000 $5,000 $12,500 Teacher certification (has UG degree) $5,500 $2,000 $5,000 $12,500

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Examples

Prerequisites Post-baccalaureate students who are taking prerequisites to be admitted to a program are limited to the following: • May only receive aid for a maximum 12 month period of time • Financial aid will pay for only those courses that satisfy prerequisite requirements • See annual loan limits in chart above based on type of prerequisite courses • Prerequisite coursework requires no proration

Base No addt’l unsub Addt'l Unsub

Prerequisites Direct Loan Annual Limits Sub/Unsub For dependents Ind/Dep no PLUS TOTAL Prerequisites for UG pgm $2,625 - $6,000 $8,625 Prerequisites for GR pgm $5,500 - $7,000 $12,500 Prerequisites for teacher certification $2,625 - $6,000 $8,625

Teacher certification • Students who have a BS/BA degree and are in a teacher licensure program (either initial or continuing) will be

considered fifth year students. Since students are not admitted into the WOU College of Education until they have completed the first three years of requirements, these students are eligible for the junior/senior annual loan limits

• Teacher certification programs (licensure) requires no proration

Post Baccalaureate 2nd Undergraduate Degree • Students working on a 2nd UG degree and are considered to be in the third, fourth or fifth year of the degree

program are eligible for junior/senior loan limits • These loans must be prorated

Pre-professional Pre-professional studies at WOU allow students to take coursework at WOU so that they can apply for admission at other universities to obtain degrees or certificates at the other institutions. WOU does not offer a degree or certificate in pre-professional studies. • Post-baccalaureate students enrolled in WOU's pre-professional studies are considered to be enrolled in a transfer

program of study. As per Julie Arthur's 12/19/02 email (U.S. Department of Education, Region X), "I see no reason why this wouldn't be considered a transfer program of study, providing the lower division courses required for completion of a nursing degree at another college/university. I believe that you can treat students enrolled in these courses as students in their first two years of study in a degree program."

• Loan limits are based on the student's earned credits in their pre-professional program • There is not a one year limit for pre-professional studies • These loans require no proration

Sub annual max = 5500 36 Credits = academic year (Subsidized Stafford Loan pro-rated example) # of credits/ term 12 11 9 8 6

Prorated % 33.33% 30.55% 25% 22.22% 16.66% Pro-rated max amt 1833 1680 1375 1222 917

Unsub annual max = 7000 36 Credits = academic year (Unsubsidized Stafford Loan pro-rated example) of credits/ term 12 11 9 8 6

Prorated % 33.33% 30.55% 25% 22.22% 16.66% Pro-rated max amt 2331 2138 1750 1555 1166

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Endorsement or authorization-only (for a teaching license) • There is no federal financial aid eligibility for students working on an endorsement or authorization-only to a

current teaching license. To be eligible for financial aid, a student must be working toward a degree or certificate; an endorsement or authorization only does not result in its own degree or certificate. The endorsement or authorization is an add-on to a current teaching license.

• These students may be eligible for a private student loan. The student should contact the lender for more information.

J. WESTERN UNDERGRADUATE EXCHANGE (WUE) PROGRAM This is a program that allows certain out-of-state students to pay reduced out-of-state tuition to WOU. This program began fall 1997. There are several states (including Oregon) that participate and only certain states at WOU qualify for the WUE program. The students who qualify will pay 150% of in-state instructional costs plus 100% of fees. Students should contact the Admissions Office for further information.

K. DEADLINES Campus based aid Aid must be packaged and student must accept aid by the last day of the enrollment period.

Pell Grant requirements Non-verified applicants: Prior to payment of federal financial aid, the Financial Aid Office must have a final and valid ISIR available to be electronically accessed by the WOU Financial Aid Office by the student’s last day of enrollment. Verified applicants: For Pell recipients selected for verification, the school must have verification documents and a valid output document no later than 120 days after the last day of enrollment or September 26, 2016, whichever is earlier.

Direct Loans requirements

Loans must be originated by the last day of the enrollment period.

13. SPECIAL PROGRAMS

A. STUDY ABROAD—REFER TO STUDY ABROAD POLICIES

15. NOTIFICATION POLICY New students receive a paper copy of their initial aid award offer notifying them of the fund amounts and disbursement information. Continuing students receive an email notification of their aid offer. Notification of revisions to the student’s aid offer is either sent via mail or email with directions to review the revised aid offer on the My Financial Aid web module.

16. RETURN OF TITLE IV FUNDS

REFER TO WITHDRAWAL POLICIES

17. OVERAWARDS and OVERPAYMENTS If WOU receives notification that changes a student’s cost of attendance, need level and/or aid package, the aid package must be reviewed to determine that the student is still eligible for the aid awarded. If an overaward situation occurs before the Stafford Loan funds have been fully disbursed, the Stafford Loans must be adjusted before the CBA funds are adjusted or canceled.

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If an overaward situation occurs after Stafford Loan funds have been fully disbursed, the counselor must review the total aid package. Some options, if the student is eligible include: seeing if the student’s need has changed, reduce campus-based funds or replace the reduced Stafford with an Unsubsidized Stafford Loan. There is a $300 overaward/tolerance/threshold for all campus based programs. The $300 threshold is allowed only if an overaward occurs after campus-based aid has been packaged. Refer to the Federal Student Aid Handbook, Volume 5—Overawards, Overpayments, and Withdrawal Calculations, Chapter 1— Overpayments and Overawards, for more information. If a student has not made satisfactory overpayment/repayment arrangements with the institution, overpayment cases can be referred to the federal government.

17. SUSPECTED FRAUD OR IMPROPRIETIES Suspected improprieties or fraud are reported to the Director or Assistant Director of Financial Aid who deals with situations on a case-by-case basis. Suspected cases of FSA fraud will be reported to the OIG.

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INDEX

A

ACADEMIC YEAR .......................................................... 12 Additional Eligibility for Federal Direct Unsubsidized

Loans ............................................................................. 23 ADDITIONAL INFORMATION REQUEST LETTER ..... 7 ADMISSION TO WESTERN OREGON UNIVERSITY ... 7 ALTERNATIVE LOANS ................................................. 23 ASSET TREATMENT ...................................................... 17

B

BUDGET ADDITIONS FOR STUDENTS ...................... 19 BUDGETS ......................................................................... 12 BUDGETS AND PAYMENT PERIODS.......................... 12

C

CAMPUS BASED AID ..................................................... 22 CHANGES TO A STUDENT’S BUDGET....................... 13 CHILD SUPPORT ............................................................. 16 CITIZENSHIP ..................................................................... 8 COMPLETING REVIEW OF THE FILE ......................... 17 CONFIDENTIALITY ......................................................... 6

D

DATA BASE MATCHES AND MATCH FLAGS........... 17 DEPENDENCY OVERRIDES ......................................... 12 DEPENDENCY STATUS ................................................. 11 DISBURSEMENT AND PAYMENT PERIODS ............. 13 Documentation of Graduate/2nd Undergraduate

Degree/Teacher Licensure ............................................... 9

E

EXPECTED FAMILY CONTRIBUTIONS (EFC) ........... 13

F

FEDERAL DIRECT STAFFORD LOANS ...................... 22 Federal Work-Study ........................................................... 22 FILE REVIEW POLICIES ................................................ 14 FINANCIAL AID FUNDS ................................................ 21

G

GRADUATE & POST-BACCALAUREATE STUDENTS’ REQUIREMENTS .......................................................... 9

GRADUATION ................................................................... 9

H

HOUSEHOLD SIZE AND NUMBER IN COLLEGE ...... 14 HOUSING ALLOWANCE ............................................... 17

I

INCOME EXCLUSION (Amount from Worksheet #3 on FAFSA) ......................................................................... 17

INSTITUTIONAL VERIFICATION ................................ 14 IRA TREATMENT ........................................................... 17

L

Less than full-time budget ........................................... 12, 13 Loan Proration for Less Than 3 Term Enrollment ............. 23

N

NSLDS MONITORING ...................................................... 9 NSLDS RESULTS FLAGS ................................................. 9

O

OFFICE RESPONSIBILITIES RELATED TO THE ADMINISTRATION OF TITLE IV PROGRAMS ......... 4

OUTSIDE RESOURCES .................................................. 18 OVERPAYMENT/REPAYMENT .................................... 25 OVERVIEW OF FINANCIAL NEED ................................ 7

P

PELL GRANTS ................................................................. 21 Preparatory Coursework ...................................................... 9 PROFESSIONAL JUDGMENT & SPECIAL

CONDITIONS ............................................................... 19 PROFESSIONAL JUDGMENT ADJUSTMENTS TO

INCOME AND ASSET COMPONENTS ..................... 20

R

REFUNDS AND REPAYMENTS .................................... 25 REJECT CODES ............................................................... 17

S

SATISFACTORY ACADEMIC PROGRESS (SAP) .......... 9 Scheduled Academic Year ................................................. 22 SELECTIVE SERVICE REGISTRATION ....................... 10 SPECIAL PROGRAMS .................................................... 25 STUDENT CONSUMER INFORMATION ....................... 7 STUDENT ELIGIBILITY ................................................... 7 STUDENTS WHO MARRY AFTER COMPLETION OF

THE FAFSA .................................................................. 12 STUDY ABROAD ............................................................ 25 SUMMER SESSION AID ................................................. 13 SUSPECTED FRAUD OR IMPROPRIETIES .................. 26

T

TAX RETURN DOCUMENTATION............................... 15

U

UPDATING DEPENDENCY STATUS ............................ 11

V

VALID SAR/ISIR .............................................................. 10 VERIFICATION AND PROFESSIONAL JUDGMENT.. 21 VERIFICATION POLICY ................................................ 14

W

WESTERN UNDERGRADUATE EXCHANGE (WUE) PROGRAM .................................................................... 25

WIDOWED, DIVORCED OR SEPARATED INDIVIDUALS .............................................................. 16

WOU OPTIONAL REPORTING FORM ............................ 7

Y

YEAR IN SCHOOL CHANGE ......................................... 18

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