GENERIC INSERVICE PRESENTATION

For College Faculty and Student Services Staff

STUDENTS NEED MONEY

We’re All In This Together!

Wh

at W

e D

oCOLLEGE FINANCIAL AID OFFICE

Wh

om

We S

erv

e

2011 College Family Income

# of enrolled students who filed a FAFSA

# with family income below poverty level (< $24,000)

% with family

income below

poverty level

1,529 654 43%

College Financial Aid Volume2011-12

Enrolled Students 1,829

FAFSAs from Enrolled Students

1,529

Students w/Fin Aid Awards 1,491

Pell Grants 1,084

Loan Borrowers 754

A+ Awards 22184% of enrolled students filed a FAFSA

82% received some type of financial aid award59% received a Pell Grant

Sources of College Financial Aid2011-12

Federal $8,576,266

State $862,202

Institutional $340,391

Other $282,844

Total $10,061,703

WH

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INA

NC

IAL A

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AZ

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Free Application for Federal Student Aid

Everybody hates it 106 invasive questions Requires prior year tax

and current asset info (+ parent info if <24)

Determines eligibility for Pell, Loans, Work, A+, and more

Each type of financial aid has its own criteria, rules and regulations…PELL GRANTS STUDENT LOANS

High financial need Undergraduate HS diploma/GED Regular student Program approved by DE Selective Service No drug conviction Homeland security status Pass verification Attend Class Return to Title IV Academic progress

All Pell requirements At least half time Counseling No default Not borrowed limit

A+ BENEFITS Full time Certified by HS No repeats 2.5 GPA

2011-12 FAFSA Verification Process781(51%) Students

How We Calculate Financial Aid

WHO GETS WHAT? HOW MUCH IS LEFT?

College Cost +Average

Living Expenses

- FAFSA Family Contribution

= Financial Aid Eligibility

Total Amount of Aid Awarded

- Student Account Charges

= Financial Aid Refund

$12,772

$500

$12,222 $9,102

$3,120

$5,100 Pell$7,122 Loan

$12,222

Strings

Attached…

• Program Reviews• Reporting • Annual Audit• New Laws• Clarified Old Laws• Information Security• Disclosures• R2T4 Calculations• Loan Default Rate

College Loan Volume

Enrolled

Students

Student Borrowe

rs

Total Loan Amounts

Average Loan

per Student

2009-10 1,916 672 $3,897,051

$5,799

2010-11 1,956 816 $4,730,416

$5,797

2011-12 1,829 754 $4,474,035

$5,934

HOW STUDENTS SEE BORROWING

HOW WE SEE

BORROWING

Remember this?

Loan Repayment

Borrowed Amount

10-Year Monthly Payment

Student in Example (one year)

$7,122 $70.09

Student in Example (two years)

$14,244 $140.19

Maximum College (two years) $21,000 $206.68

Maximum Undergraduate $57,500 $565.90

Financial Aid Students are required to

Establish attendance in each course

Stay in class Maintain satisfactory

academic progress

To preserve the right to distribute federal student aid, the College

must Demonstrate that each financial aid

recipient attended each class at least once

Capture a Last Date of Attendance for Fs and Xs

Calculate earned vs. unearned financial aid when a student withdraws or stops attending all classes

Monitor and take action when an FA recipient does not meet our satisfactory academic progress policy

Meet Samantha

May 14 Enrolled in four classes for Fall

July 16 Awarded $2,535 Pell Grant & $4,000 Loan

Sept 11 $4,975 refund check mailed

Sept 28 Instructor #1 reported Sam never attended

Dec 15 Instructor #2 reporter her LDA Sept 2

Dec 15 Instructor #3 reported her LDA Sept 11

Dec 15 Instructor #4 reported her LDA Sept 28

Dec 18 The College called Samantha who said she never attended any classes and assumed the “reward” check could be used for expenses until she re-enrolled. She’d spent the $4,975.

Samantha wins a ticket to Accounts Receivable City and Collections Town…

ATTENDANCE =participation in an academically-related activity

In other words…

Go

Handout from the ProvostAttendance and Return of Title IV

Federal Financial Aid Funds

• How the U.S. Department of Education views class attendance for Title IV purposes

• How the College proves attendance for Title IV purposes

• How the U.S. Department of Education defines attendance in an academically-related activity for Title IV purposes

• How the Financial Aid Office calculates and treats earned and unearned Title IV funds

Satisfactory Academic Progress

To continue to receive funding, College financial aid recipients

must Maintain at least a 2.0 cumulative

grade point average Pass 67% of the credit hours they

attempt Complete their program of study

within 150% of the length of the program

Note: There is a limited appeal process when mitigating circumstances prevent satisfactory progress.

Return to Title IV--

the Feds Want their

DUE

An FA award is a contract to

complete course work—if the

student doesn’t fulfill it, money is

owed back.

R2T4A Cautionary Tale

For want of a nail… A Mythical Community College wrote off more

than $400,000 in federal aid in one year This was the result of attendance not being

reported in a timely manner The aid had been awarded then had to be

returned to the federal programs because students didn’t “earn” it (didn’t attend or stopped attending)

AMCC paid the Feds then had to try to collect back from students—they got all but the $400K

TAKE AWAYS

Financial Aid is essential to the College and its students ($10,000,000+ and growing)

Financial Aid is big and complicated

Our Financial Aid operation is now compliant and successful

Everyone plays a critical part in ensuring continued funding : Students go to class and make progress Faculty keep required records Administrators interpret the regulations

and ensure compliance Staff process financial aid and inform

students

We’re All In This Together!

As part of ourTitle IV Federal Student Aid Participation Agreement, the College must “…communicate to the individual designated to be responsible for administering Title IV programs, all the information received by any institutional office that bears on a student's eligibility for Title IV, HEA program assistance. “

--34 CFR 668.16 Code of Federal Regulations