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Self-evaluation Guide for inStitutional ParticiPation in title iv and other federal ProGramS

the Self-evaluation Guide has been designed as an in-house tool to help institutions evaluate the efficiency and effectiveness of their administration of financial aid programs and compliance with federal laws and regulations.

2015–16 - THIRTY-FIRST EDITION

FEDERAL DIRECT STUDENT LOAN PROGRAM

PART 2 – Administration of Title IV SECTION X

i

© 2008–2015 by National Association of Student Financial Aid Administrators (NASFAA). All rights reserved. NASFAA has prepared this document for use only by personnel, licensees, and members. The information contained herein is protected by copyright. No part of this document may be reproduced, translated, or transmitted in any form or by any means, electronically or mechanically, without prior written permission from NASFAA. NASFAA SHALL NOT BE LIABLE FOR TECHNICAL OR EDITORIAL ERRORS OR OMISSIONS CONTAINED HEREIN; NOR FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES RESULTING FROM THE FURNISHING, PERFORMANCE, OR USE OF THIS MATERIAL. This publication contains material related to the federal student aid programs under Title IV of the Higher Education Act. While we believe that the information contained herein is accurate and factual, this publication has not been reviewed or approved by the U.S. Department of Education or the Department of the Interior. NASFAA reserves the right to revise this document and/or change product features or specifications without advance notice. December 2015

NASFAA Self-Evaluation Guide Part 2 Section X

This requirement became effective for the 2015–16 award year. Unless otherwise noted, the requirement was effective 7/1/2015.

© 2015 NASFAA Page 1

X. Federal Direct Student Loan Program Prepared by __________________ Date ______ Reviewed by __________________ Date ______

Note: Periodically, exceptions to or waivers of certain statutory and regulatory requirements are granted due to national emergencies and/or federally-declared disasters. Information regarding exceptions/waivers for the 2015–16 award year may be found in the Guide Instructions. Reference Question Responsible

Office Response

I. General 685.301(a)(9) A. Does the institution comply with

requirements not to assess a fee for the completion or certification of any Federal Direct Student Loan Program forms or information, or for the origination of a Direct Loan?

____________

____________

yes no

II. Borrower Eligibility 685.200(a)-(c) GEN-15-09

A. Does the institution ensure student and parent borrowers meet all eligibility requirements?

____________

____________

yes no

685.201(a)(1), (b)(2) 2015–16 FSA Handbook, p. AVG-3

1. Does the institution require all students seeking to borrow or receive Direct Loan funds to file a Free Application for Federal Student Aid (FAFSA)?

____________

____________

yes no

668.32(g)(1) 668.35(a) 685.200(c)(2)(iv) 2015–16 FSA Handbook, p. 1-60

2. In the case of a student or parent who is currently in default on a Title IV loan, does the institution ensure the borrower has re-established his or her eligibility as defined in regulation?

____________

____________

yes no

668.32(a)(2) 685.200(a)(1)(i), (b)(1),(c)(2)(i)

3. Does the institution originate a loan only if the student is, or will be, enrolled at least half time?

____________

____________

yes no

GEN-15-09

4. When determining the enrollment status of a student enrolled in an eligible career pathway program, does the institution exclude any credit or clock hours associated with the adult education component of the program regardless of whether the institution considers the adult education coursework to be remedial?

____________ ____________

yes no n/a

NASFAA Self-Evaluation Guide Part 2 Section X DIRECT LOANS



Reference Question Responsible Office

Response

685.200(a)(1)(iii) 5. If the institution participates in the Federal Pell Grant Program, does the institution determine an undergraduate student’s Federal Pell Grant eligibility or ineligibility prior to originating a subsidized or unsubsidized Direct Loan?

____________

____________

yes no n/a

2015–16 FSA Handbook, p. 1-78

6. Does the institution treat as ineligible for Direct Loans, students who are serving in a medical internship or residency program (other than dentistry), unless it is part of the degree program?

____________

____________

yes no n/a

685.200 (a)(1)(iv)(A),(B)

7. When a borrower’s previous Title IV loan or Teacher Education Assistance for College and Higher Education (TEACH) Grant service obligation was discharged after a final determination of total and permanent disability, does the institution require the borrower to:

Obtain a physician’s certification

that the borrower is able to engage in substantial gainful activity;

____________

____________

yes no

Sign a statement acknowledging

neither the new loan the borrower receives nor any previously discharged loan on which the borrower is required to resume payment can be discharged on the basis of any impairment present when the new loan is made unless the impairment substantially deteriorates; and

____________

____________

yes no





Response

Resume payment on a previously discharged loan or become subject again to the terms of a TEACH Grant agreement to serve if, based on a discharge request received on or after July 1, 2010, the borrower obtains a new Direct Loan (other than a Direct Consolidation Loan) within three years from the date the previous Title IV loan or TEACH Grant service obligation was discharged due to total and permanent disability?

____________

____________

yes no

685.200 (a)(1)(iv)(A)(1),(C)

8. When a borrower’s prior Title IV loan was conditionally discharged based on an initial determination of total and permanent disability based on a discharge request received before July 1, 2010, does the institution require the borrower to:

Obtain a physician’s certification

that the borrower is able to engage in substantial gainful activity;

____________

____________

yes no

Sign a statement acknowledging:

1) neither the new loan the borrower receives nor any previously received loan that has been conditionally discharged prior to a final determination of total and permanent disability cannot be discharged on the basis of any impairment present when the new loan is made unless the impairment substantially deteriorates, and 2) suspension of the collection activity on that prior loan has been or will be been lifted?

____________

____________

yes no

668.32(c)(3) 2015–16 FSA Handbook, p. 1-17

9. Does the institution treat as ineligible for Direct Loans borrowers who are incarcerated?

____________

____________

yes no





Response

668.32(g)(3) 2015–16 FSA Handbook, pp. 1-51 to 1-52

10. Does the institution treat as ineligible for Direct Loans if the:

Student borrower has a federal

judgment lien on his or her property for a debt owed to the United State (U.S.); or

____________

____________

yes no

Either the parent PLUS borrower

or the student for whom the parent has requested a parent PLUS has a federal judgment lien on his or her property for a debt owed to the U.S.?

11. Does the institution have a

mechanism in place to ensure each parent borrower:

685.200(c)(2)(iii) 2015–16 FSA Handbook, p. 1-78

Is a U.S. citizen or eligible noncitizen;

____________

____________

yes no n/a

685.200(c)(1)(iv) 2015–16 FSA Handbook, p. 1-78

Is not in default on a Title IV loan or owe a Title IV overpayment;

____________

____________

yes no n/a


Is not incarcerated; and ____________

____________

yes no n/a

2015–16FSA Handbook, p. 1-79

Does not have a federal judgment lien on his or her property?

____________

____________

yes no n/a

685.200(c)(2)(vii) 12. If the parent borrower has been

convicted of, or has pled nolo contendere or guilty to, a crime involving fraud in obtaining Title IV aid, does the institution ensure the parent has repaid any Title IV aid obtained by fraud?

____________

____________

yes no n/a

668.2(b), Parent 685.200(c)(2)(viii) (G)(3)

B. Does the institution use the regulatory definition of parent for parent PLUS borrower purposes?

____________

____________

yes no n/a





Response

668.2(b), Parent 685.200(c)(2)(viii) (G)(3) 2015–16 FSA Handbook, p.1-78

1. Does the institution recognize a stepparent as an eligible Direct PLUS borrower if his or her income and assets would have been taken into account when calculating the student’s expected family contribution (EFC)?

____________

____________

yes no n/a

668.2(b), Parent 685.200(c)(2) (viii) (G)(3) 2015–16 FSA Handbook, p.1-78

2. Does the institution recognize a biological or adoptive parent as an eligible Direct PLUS borrower even if that individual’s information is not included on the FAFSA due to divorce or separation?

____________

____________

yes no n/a

2015–16 FSA Handbook, p. AVG-123

C. If the institution offers a dependent student an unsubsidized Direct Loan without requiring the parents to provide information on the FAFSA, does the institution verify and document the:

Parents have ended their financial

support of the student; and ____________

____________

yes no n/a

Parents’ refusal to provide

information to complete a FAFSA? ____________

____________

yes no n/a


1. If the parents refuse to provide the required verification, does the institution obtain documentation describing the student’s relationship with his or her parents from a third party?

____________

____________

yes no n/a


2. Does the institution require the student to complete and submit a FAFSA that includes all student information and certifications?

____________

____________

yes no n/a

III. 150 Percent Direct Subsidized Loan Limitation 685.200(f)(1)(i), (ii) 2015–16 FSA Handbook, p. 3-123

A. For a first-time borrower who receives a Direct Subsidized Loan on or after July 1, 2013, does the institution ensure he or she does not receive Direct Subsidized Loans for more than 150 percent of the published length of the academic program in which he or she is currently enrolled?

____________

____________

yes no n/a





Response

Federal Register, 5/16/13, p. 28956

1. Does the institution consider a student a first-time borrower if he or she repaid in full all Federal Family Education Loan (FFEL) or Direct Loan received before borrowing a Direct Loan on or after July 1, 2013?

____________

____________

yes no n/a

685.200(f)(2) 2. Does the institution ensure first-time

borrowers who have exhausted their eligibility for Direct Subsidized Loans are offered Direct Unsubsidized Loans for which they are eligible?

____________

____________

yes no

685.200(f)(1)(iii)

B. Does the institution calculate subsidized usage periods by dividing the number of days in a borrower’s loan period for a Direct Subsidized Loan by the number of days in the academic year for which the borrower receives a Direct Subsidized Loan and then round to the nearest tenth of an academic year?

____________

____________

yes no n/a

685.200(f)(4)(ii) 1. Does the institution prorate

subsidized usage periods for part-time enrollment by:

0.75 for three-quarter time

enrollment; and ____________

____________

yes no

0.5 for half-time enrollment? ____________

____________

yes no

685.200(f)(4)(i) 2. If a first-time borrower receives his

or her full annual loan limit in a Direct Subsidized Loan for a loan period less than a full academic year in length, does the institution consider the borrower’s subsidized usage period to be one year?

____________

____________

yes no

685.200(f)(6)(i) 3. Does the institution ensure Direct

Subsidized Loans borrowed for the completion of preparatory coursework are included in the calculation of the borrower’s subsidized usage period?

____________

____________

yes no





Response

685.200(f)(6)(ii) C. If a borrower is completing preparatory coursework for enrollment in an undergraduate program, does the institution ensure the borrower’s maximum eligibility period is the maximum eligibility period for the program for which the coursework is required?

____________

____________

yes no

685.200(f)(6) (1)(iii)

D. If a borrower is completing preparatory coursework for enrollment in a graduate or professional program, does the institution ensure the borrower’s maximum eligibility period is the maximum eligibility period for the undergraduate program for which the borrower most recently received a Direct Subsidized Loan?

____________

____________

yes no

685.200(f)(7)(i) E. If a first-time borrower is enrolled in a

teacher certification program for which the institution does not award an academic credential, does the institution ensure the borrower’s maximum eligibility period equals 150 percent of the published length of the teacher certification program?

____________

____________

yes no

685.200(f)(7)(ii) 1. When calculating a borrower’s

remaining eligibility, does the institution ensure only Direct Subsidized Loans borrowed for the teacher certification program are included when calculating the borrower’s subsidized usage period?

____________

____________

yes no

IV. Loan Origination GEN-15-09

A. When determining the cost of attendance of a student enrolled in an eligible career pathway program, does the institution exclude any credit or clock hours associated with the adult education component of the program?

____________

____________

yes no n/a





Response

685.102(b), Estimated financial assistance,(1)

B. Has the institution established procedures to calculate the estimated financial assistance (EFA) the student will receive from federal, state, institutional, or other sources, such as scholarships, grants, loans, fellowships, assistantships, and need-based employment, including but not limited to Federal Pell Grant, campus-based funds, insurance programs for the student’s education, any educational benefits paid because of enrollment in a postsecondary education institution or to cover postsecondary education expenses, and national service education awards or post-service benefits under the National and Community Service Act (AmeriCorps)?

____________

____________

yes no

685.102(b), Estimated financial assistance,(2)

1. Does the institution exclude the following from the EFA:

Any amount used to replace the EFC from TEACH Grant, Direct Unsubsidized Loan, PLUS, or nonfederal non-need-based loans;

____________

____________

yes no n/a

Any Federal Perkins Loan or

Federal Work-Study (FWS) awards the student declined or for which the student did not apply;

____________

____________

yes no n/a

National service education

awards or post-service benefits under AmeriCorps for purposes of determining the subsidized portion of Direct Loan eligibility;

____________

____________

yes no

Non-need-based employment

earnings; ____________

____________

yes no

Any portion of EFA included in

the calculation of the student’s EFC;

____________

____________

yes no





Response

Non-Title IV assistance if that assistance is designated to offset all or a portion of a specific amount of the cost of attendance (COA) and that component is excluded from the COA as well;

____________

____________

yes no

Federal veterans’ educational

benefits excluded by statute or regulation; and

____________

____________

yes no

Iraq and Afghanistan Service

Grants? ____________

____________

yes no n/a


C. Does the institution document the student’s EFC, COA, and EFA in the student’s file, and make this information available to the U.S. Department of Education (ED) upon request?

____________

____________

yes no

GEN-13-13 150% Direct Subsidized Loan Limit: Electronic Announcement #12

D. Does the institution report the following information to the Common Origination and Disbursement (COD) System when originating a Direct Loan:

GEN-13-13 Academic year dates; ____________

____________

yes no

GEN-13-13 Loan period dates; ____________

____________

yes no

150% Direct Subsidized Loan Limit: Electronic Announcement #12

Program’s Classification of Instructional Programs (CIP) code, credential level, and published length; and

____________

____________

yes no


Special Program indicator if student is enrolled in a selective admissions associate degree program, a bachelor’s degree completion program, preparatory coursework for admission to an undergraduate or graduate program, or non-credential teacher certification program?

____________

____________

yes no





Response


1. If there are changes to the loan period or academic year dates, does the institution update the information within 15 days of the date the school became aware of the need to make an adjustment?

____________

____________

yes no


2. At the time of the loan’s disbursement, does the institution report any update or correction to the program’s CIP code, credential level, or published length or to the Special Program Indicator?

____________

____________

yes no

685.301(a)(8)(i),(ii) 2015–16 FSA Handbook, p. 3-90

E. If the institution refuses to originate a Direct Loan or reduces the amount the borrower may borrow, does the institution:

Make its decision only on a case-by-

case basis; ____________

____________

yes no n/a

Document its decision in the

student’s file; and ____________

____________

yes no n/a

Provide the borrower, in writing, its

reasons for declining to originate the loan or for reducing the amount of the loan?

____________

____________

yes no n/a

685.301(a)(8)(iii) 1. Does the institution ensure it does

not engage in any discriminatory practice based on the borrower’s race, sex, color, religion, national origin, age, disability status, or income?

____________

____________

yes no


2. Does the institution prohibit the practice of originating Direct Loans only in the amount needed to cover institutional charges?

____________

____________

yes no


3. Does the institution prohibit the practice of limiting Direct Unsubsidized Loan borrowing by independent students?

____________

____________

yes no


F. Does the institution determine the amount of a student’s Direct Subsidized Loan eligibility before originating an unsubsidized amount?

____________

____________

yes no





Response

Note: If an institution does not participate in graduate PLUS, skip Question F.

685.200(b)(4) 685.301(a)(3) 2015–16 FSA Handbook, p. 3-142

G. Does the institution determine the amount of the student’s unsubsidized Direct Loan eligibility before originating a graduate PLUS amount?

____________

____________

yes no

685.301(a)(3)(i) 2015–16 FSA Handbook, p. 3-142

1. If a graduate or professional student is eligible for a Direct Unsubsidized Loan but has not requested the maximum amount for which he or she is eligible, does the institution notify the student of the maximum Direct Loan amount for which he or she is eligible and provide a comparison of the following for both Direct Unsubsidized Loans and PLUS:

Maximum interest rate; ____________

____________

yes no

Periods when interest accrues;

and ____________

____________

yes no

Point at which the loans enter

repayment? ____________

____________

yes no

685.301(a)(3)(ii) 2015–16 FSA Handbook, p. 3-142

2. Does the institution provide the graduate or professional student with an opportunity to request the unsubsidized Direct Loan amount in lieu of and/or in addition to the graduate PLUS?

____________

____________

yes no


H. Does the institution originate loans for periods of enrollment that coincide with an academic period established by the school for which institutional charges generally are assessed (e.g., semester, trimester, quarter, length of the student’s program, or academic year)?

____________

____________

yes no

685.301(a)(10)(i) (A)

1. For credit-hour programs consisting of standard terms or nonstandard terms substantially equal in length with no term less than nine weeks, is the minimum period for which the institution originates a loan a single term?

____________

____________

yes no n/a





Response

685.301(a)(10)(i) (B)

2. For all other academic programs, is the minimum period for which the institution originates a loan the lesser of the student’s academic program (or remaining portion if the student has less than a full program remaining) or the academic year?

____________

____________

yes no n/a

685.301(a)(10)(ii) 3. For a transfer student whose prior

school originated a loan for a period of enrollment that overlaps the new period of enrollment, does the institution originate the loan for the remaining portion of the program or academic year in an amount that does not exceed the remaining balance of the student’s annual loan limit?

____________

____________

yes no n/a

685.301(a)(10)(iii) 4. For a student who completes a

program at the institution and then begins a new program, does the institution originate the loan for the remainder of the academic year in an amount that does not exceed the remaining balance of the student’s annual loan limit at the loan level associated with the new program if the student’s last loan to complete the prior program was for less than an academic year?

____________

____________

yes no n/a

685.301(a)(10)(iv) (A)

5. Is the maximum period of enrollment for which a loan is originated the length of the academic year, or an alternative longer period of time corresponding to the period to which the school applies annual loan limits?

____________

____________

yes no


I. For students charged “up front” for an entire program longer than an academic year, does the institution include all tuition charges in the COA only for a loan which includes the first enrollment period, and no tuition charges in the COA for loans originated for subsequent loan periods during the program?

____________

____________

yes no n/a





Response

668.58(a)(1)(iii) J. When the institution has reason to believe the information reported on the FAFSA is inaccurate, does it decline to originate (or disburse) a subsidized Direct Loan for the student until he or she provides verification of, or corrects, the application data in question?

____________

____________

yes no

The Blue Book, 2013, p. 8-3

K. Does the institution collect and document the borrower’s requested loan amount before originating a Direct PLUS?

____________

____________

yes no n/a


1. Does the institution maintain a record of any request by the borrower (in writing, by phone, or electronically) for any adjustment to the loan amount?

____________

____________

yes no n/a

V. Master Promissory Note The Blue Book, 2013, pp. 8-4 and 8-41

A. Does the institution give a Direct Loan borrower the option of completing and signing a paper Master Promissory Note (MPN) if the institution uses the electronic MPN?

____________

____________

yes no n/a

The Blue Book, 2013, pp. 8-4 and 8-41

B. If a Direct Loan borrower does not want to sign the MPN electronically, does the institution require the borrower to complete and sign a paper MPN?

____________

____________

yes no


1. If a power of attorney is used to sign the MPN, does the institution:

Obtain the borrower’s written

authorization to credit loan funds to the student’s institutional account;

____________

____________

yes no n/a

Limit the use of the MPN to one

loan; ____________

____________

yes no n/a

Keep a copy of the original

power of attorney in its files if the MPN is submitted through the school; and

____________

____________

yes no n/a

Submit a copy of the original

power of attorney with the MPN to the loan holder?

____________

____________

yes no n/a





Response


C. Does the institution ensure no new loans are made on a MPN after the earliest of:

____________

____________

yes no

The date the COD System or the

institution receives the borrower’s written notification that no further loans may be made;

One year after the date the borrower

signed the MPN, or the date COD receives the MPN if no disbursement is made, during that 12-month period; or

Ten years after the date the

borrower signed the MPN or the date COD receives the MPN?

Note: If an institution does not use the multi-

year feature of the MPN, skip Questions D through E.


D. If using the multi-year feature of the MPN, does the institution require a borrower to sign a new MPN if:

A valid Direct Loan MPN is not on

file with the COD System for the borrower;

____________

____________

yes no

All MPNs on file have been closed

by the borrower or are expired; and ____________

____________

yes no

The most recent Direct PLUS Loan

MPN included an endorser? ____________

____________

yes no

The Blue Book, 2013, pp. 8-46 to 8-47

E. Does the institution have a documented borrower confirmation process if it uses the multi-year feature of the MPN?

____________

____________

yes no

1. If the institution uses an active

confirmation process, does the institution refrain from disbursing the loan until the borrower either:

____________

____________

yes no n/a

Requests or accepts the

proposed loan type and amount; or





Response

Requests a change to the proposed loan package?

2. If the institution uses a passive

confirmation process, does the institution refrain from disbursing the loan until the borrower:

Is notified of his or her loan

package; and ____________

____________

yes no n/a

The time given to the borrower to

respond has elapsed? ____________

____________

yes no n/a


F. Does the institution ensure each student and parent borrower receives the Plain Language Disclosure statement at or prior to disbursement?

____________

____________

yes no


G. If a parent borrows a Direct PLUS on behalf of multiple dependent students, does the institution require the borrower to complete a separate MPN for each student?

____________

____________

yes no n/a


1. Does the institution require a separate Direct PLUS MPN from each borrower if two parents want to borrow individually on behalf of the same dependent student?

____________

____________

yes no n/a


H. If a graduate PLUS borrower borrows a PLUS on behalf of his or her children, does the institution require the borrower to complete a:

Graduate PLUS MPN for himself or

herself; and ____________

____________

yes no n/a

Separate Direct PLUS MPN for each

dependent student? ____________

____________

yes no n/a


I. If a Direct PLUS endorser is used, does the institution require a separate Direct PLUS MPN and Endorser Addendum for each Direct PLUS obtained with the use of an endorser?

____________

____________

yes no n/a





Response


1. Before originating an increase in the requested loan amount by the PLUS borrower, does the institution require:

The endorser’s approval of the

increase; ____________

____________

yes no n/a

A new MPN; and ____________

____________

yes no n/a

A new Endorser Addendum? ____________

____________

yes no n/a

VI. Loan Limits 685.203(a)-(c),(j) 685.301(a)(4)

A. Does the institution ensure it does not originate a subsidized or unsubsidized Direct Loan for an amount that exceeds the lowest of the student’s need (COA minus EFA and, in the case of a subsidized loan, minus the EFC), applicable annual loan limit, or the student’s request?

____________

____________

yes no

685.203(f),(j)

B. Does the institution ensure it does not originate a Direct PLUS for an amount that exceeds the lesser of the student’s need (COA minus EFA) or the amount requested by the borrower?

____________

____________

yes no n/a

Note: Questions C through F apply only to

the institution’s credit-hour programs offered in standard terms or nonstandard terms consisting of substantially equal terms and no term less than nine weeks.

668.3 685.203(h) 2015–16 FSA Handbook, p. 3-98

C. If the institution chooses to use a scheduled academic year (SAY) to determine the frequency of annual loan limits, does the institution ensure it uses a SAY only for students enrolled in programs that are term-based credit-hour programs offered in a traditional academic calendar (i.e., terms that start and end at about the same time each calendar year)?

____________

____________

yes no n/a





Response

668.3 685.203(h) 2015–16 FSA Handbook, p. 3-100

D. If the student’s program is not offered in a traditional academic calendar, does the institution only use a borrower-based academic year (BBAY) to determine the frequency of annual loan limits?

____________

____________

yes no n/a

2015–16 FSA Handbook, pp. 3-99 to 3-100, 3-104

1. Does a student’s BBAY:

Begin with a term in which the student actually is enrolled; and

____________

____________

yes no n/a

Include enough terms to meet

the minimum number of weeks of instructional time and number of credit hours in an academic year?

____________

____________

yes no n/a


2. If a student has borrowed a Direct Loan for a BBAY, does the institution ensure the student does not receive additional loans during the BBAY unless he or she:

____________

____________

yes no n/a

Did not receive the applicable

maximum annual loan and has remaining eligibility;

Progresses to a grade level with

a higher annual loan limit; or

Changes from a dependent to an

independent student?

2015–16 FSA Handbook, pp. 3-99 to 3-100

E. If the institution alternates between using a SAY and a BBAY, does it:

Ensure the academic years do not overlap; and

____________

____________

yes no n/a

Have a written policy that explains

how it applies this option? ____________

____________

yes no n/a


F. If a student changes programs or is a transfer student and there is an overlap of academic years, does the institution:

Originate the student’s loan only for

the remaining portion of the student’s academic year; and

____________

____________

yes no n/a





Response

Restrict the amount the student may borrow to the difference between the student’s annual loan limit and the amount already borrowed for the academic year?

____________

____________

yes no n/a

Note: Questions G through I apply only to

the institution’s clock-hour programs, nonterm credit-hour programs, and nonstandard term credit-hour programs consisting of terms not substantially equal in length or less than nine weeks.

2015–16 FSA Handbook, pp. 3-101, 3-104

G. Does the institution only use a BBAY to determine the frequency of annual loan limits for students enrolled in these programs?

____________

____________

yes no

2015–16 FSA Handbook, pp. 3-101, 3-104

H. Does a student’s BBAY include the minimum number of weeks of instructional time and number of credit or clock hours in an academic year?

____________

____________

yes no


1. Does the institution ensure a student completes both the number of hours and the number of weeks in the BBAY before he or she is eligible for a new annual loan limit?

____________

____________

yes no


I. If a student has borrowed a Direct Loan for a BBAY, does the institution ensure the student does not receive additional Direct Loans during the BBAY unless the student:

____________

____________

yes no

Did not receive the applicable

maximum annual loan and has remaining eligibility; or

Changes from a dependent to an

independent student?

Note: The following questions apply to all

types of academic programs.





Response

685.301(a)(10)(ii) Federal Register, 11/1/13, p. 65785 2015–16 FSA Handbook, pp. 3-115 to 3-116

J. If a student is a transfer student and there is an overlap of academic years, does the institution:

Originate the transfer student’s loan

only for the remaining portion of the student’s program or academic year that began at the prior institution; and

____________

____________

yes no n/a

Allow the student to progress to a

new annual loan limit only upon completion of the remaining portion of the loan period from the prior institution?

____________

____________

yes no n/a

685.301(a)(10)(iii) 2015–16 FSA Handbook, p. 3-117

K. If a student completes a program at the institution, where the student’s last loan to complete that program was for less than an academic year, and begins a new program, does the institution:

Originate the student’s loan only for

the remainder of the academic year; and

____________

____________

yes no

Restrict the amount the student may

borrow to the difference between the annual loan limit for the student’s new program of study and the amount already borrowed for the academic year?

____________

____________

yes no


L. Does the institution refrain from prohibiting an otherwise eligible student who is maintaining satisfactory academic progress from borrowing more than one annual loan limit at the same grade level?

____________

____________

yes no


M. Does the institution count remedial coursework towards a student’s grade level progression only if the institution’s written and officially approved academic grade level progression policy specifies remedial coursework can be counted for this purpose?

____________

____________

yes no n/a





Response


N. Does the institution ensure it does not link two stand-alone, one-year programs by making one a prerequisite for admission to the other so that students beginning the second one-year program can be classified as second-year students for loan limit purposes?

____________

____________

yes no n/a

668.2(b), Undergraduate student,(1) 2015–16 FSA Handbook, p. 1-75

O. Does the institution classify as undergraduate students only those who are enrolled in:

An undergraduate course of study

that usually does not exceed four years; or

____________

____________

yes no n/a

A longer program designed to lead

to a degree at the baccalaureate level?

668.2(b), Undergraduate student,(3) 2015–16 FSA Handbook, pp. 1-75, 3-106

1. If a student is enrolled in a dual degree program (i.e., a program that allows individuals to complete a bachelor’s degree and a graduate or professional degree within the same period), does the institution allow undergraduate Direct Loan limits only for at least the first three years of the program?

____________

____________

yes no n/a

668.2(b), Undergraduate student,(4) 2015–16 FSA Handbook, p. 1-75

2. If a student is enrolled in an undergraduate program of study which exceeds five years in length, does the institution consider the student to be an undergraduate for only the first three or four years of the program?

____________

____________

yes no n/a

685.203(a)(8),(b), (c)(1)(i),(c)(2)(i)

3. Does the institution impose first-year undergraduate Direct Loan limits if a student is enrolled in an undergraduate program that is one academic year or less in length?

____________

____________

yes no n/a

685.203(a)(1)(iii), (b) 2015–16 FSA Handbook, p. 3-113

4. Does the institution prorate the first-year undergraduate annual loan limits if the program is less than an academic year?

____________

____________

yes no n/a





Response

685.203(a)(9)(i),(b)

5. Does the institution impose first-year undergraduate Direct Loan limits if a student is enrolled in an undergraduate program that is more than one academic year in length but has not successfully completed the first year of the program?

____________

____________

yes no n/a

685.203(a)(9)(ii),(b)

6. Does the institution impose second-year Direct Loan limits if a student:

Is enrolled in an undergraduate

program that is more than one academic year in length;

____________

____________

yes no n/a

Has successfully completed the

first year of the program; and ____________

____________

yes no n/a

Has not successfully completed

the second year of the program? ____________

____________

yes no n/a

685.203(a)(3),(b)

7. Does the institution impose third-year and beyond Direct Loan limits if a student:

Is enrolled in an undergraduate

program that is more than one academic year in length;

____________

____________

yes no n/a

Has successfully completed the

first and second years of the program; and

____________

____________

yes no n/a

Has not successfully completed

the remainder of the program? ____________

____________

yes no n/a

685.203(a)(1)(ii),(2) (ii),(3)(ii),(b) 2015–16 FSA Handbook, pp. 3-113 to 3-114

8. For undergraduate programs equal to or longer than an academic year, does the institution prorate annual Direct Loan limits if a student is enrolled in the final portion of a program that is less than an academic year in length?

____________

____________

yes no n/a





Response

685.203(c) 2015–16 FSA Handbook, p. 3-109

P. If, due to adverse credit history or other exceptional circumstances, the institution determines a dependent student’s parents are likely to be precluded from borrowing a Direct PLUS, does the institution document its determination that the student may borrow under the additional Direct Unsubsidized Loan limits applicable to dependent students whose parents cannot borrow a PLUS?

____________

____________

yes no n/a


1. Does the institution prohibit treating a parent’s refusal to borrow a Direct PLUS as an exceptional circumstance?

____________

____________

yes no n/a

GEN-11-07 2. If the institution does not participate

in the PLUS Program, does it restrict the student to the Direct Unsubsidized Loan limits applicable to dependent students whose parents can borrow a PLUS?

____________

____________

yes no n/a


3. If both parents independently apply for a Direct PLUS, and one is approved and the other denied, does the institution restrict the student to the Direct Unsubsidized Loan limits applicable to dependent students whose parents can borrow a Direct PLUS?

____________

____________

yes no n/a


4. If the institution determines a dependent student is eligible for the additional Direct Unsubsidized Loan limits applicable to dependent students whose parents cannot borrow a Direct PLUS, does the institution re-examine and document that exceptional circumstances continue to apply before originating another loan under those loan limits in subsequent award years?

____________

____________

yes no n/a

685.203(a)(5), (b)(2),(c)(2)(v)

Q. Does the institution allow graduate Direct Loan limits only for students it classifies as graduate or professional students?

____________

____________

yes no n/a





Response

668.2(b), Graduate or professional student

1. Does the institution classify as graduate or professional students only students who:

Are not receiving Title IV aid as

undergraduate students for the same period of enrollment;

____________

____________

yes no n/a

Are enrolled in a program or

course of study above the baccalaureate level or in a program leading to a first professional degree; and

____________

____________

yes no n/a

Have completed the equivalent

of at least three academic years of full-time study either prior to entrance into their program or as part of the program itself?

____________

____________

yes no n/a


2. For a graduate student enrolled in both graduate and undergraduate courses, does the institution consider the student as eligible for graduate loan limits if the student is enrolled at least half time in courses (either graduate or undergraduate) that can be applied to the student’s graduate program requirements?

____________

____________

yes no n/a


3. Does the institution originate only Direct Unsubsidized loans for graduate and professional students?

____________

____________

yes no n/a


R. For a student enrolled in preparatory coursework, does the institution restrict borrowing to one consecutive 12-month period (not per program) beginning with the first day of the first loan period?

____________

____________

yes no n/a


1. If a student has previously borrowed a Direct Loan for preparatory coursework, does the institution deny subsequent requests for a Direct Loan unless the preparatory coursework spans more than one academic year and the request is for the final portion of the consecutive 12-month period?

____________

____________

yes no n/a





Response

685.203(a)(6)(i) 2015–16 FSA Handbook, p. 3-108

2. Does the institution impose a loan limit of $2,625 and a limit of $2,000 in additional unsubsidized loans for dependent students whose parents can borrow a Direct PLUS, who are enrolled in coursework necessary for enrollment in an undergraduate program?

____________

____________

yes no n/a

685.203(a)(6)(i),(b), (c)(2)(vi)(A) 2015–16 FSA Handbook, p. 3-108

3. Does the institution impose a base loan limit of $2,625 and a limit of $6,000 in additional unsubsidized loans for all other undergraduate students (i.e., independent students and dependent students whose parents cannot borrow a Direct PLUS) who are enrolled in coursework necessary for enrollment in an undergraduate program?

____________

____________

yes no n/a

685.203(a)(6)(ii), (b)(1) 2015–16 FSA Handbook, p. 3-108

4. Does the institution impose the third-year and beyond undergraduate base (i.e., combined subsidized and unsubsidized) Direct Loan limit for dependent students who are enrolled in preparatory coursework necessary for enrollment in a graduate program and whose parents can borrow a Direct PLUS?

____________

____________

yes no n/a

685.203(a)(6)(ii), (b)(2),(c)(2)(vii) 2015–16FSA Handbook, p. 3-108

5. Does the institution impose the third-year and beyond undergraduate base and additional unsubsidized loan limits for independent students and dependent students, whose parents cannot borrow a Direct PLUS, who are enrolled in coursework necessary for enrollment in a graduate program?

____________

____________

yes no n/a

2015–16 FSA Handbook, pp. 3-108, 3-113

6. Does the institution refrain from prorating loans for students enrolled in preparatory coursework?

____________

____________

yes no n/a

Note: If an institution does not have a

teacher certificate program, skip Question S.





Response

668.32(a)(1)(iii) 2015–16 FSA Handbook, p. 1-5

S. For a student enrolled at least half time, not as a regular student but in coursework for a teacher credential or certification, does the institution ensure the program is:

Offered in credit or clock hours; and ____________

____________

yes no

Required for elementary or

secondary school teacher certification or recertification in the state where the student plans to teach?

____________

____________

yes no


1. Does the institution document that the coursework is required by the state for teacher certification?

____________

____________

yes no

685.203(a)(7), (b)(1) 2015–16 FSA Handbook, p. 3-108

2. Does the institution impose the third-year and beyond undergraduate base (i.e., combined subsidized and unsubsidized) Direct Loan limit for dependent students who are enrolled at least half time in an eligible teacher certification program and whose parents can borrow a Direct PLUS?

____________

____________

yes no n/a

685.203(a)(7), (b)(2),(c)(2)(vii) 2015–16 FSA Handbook, p. 3-108

3. Does the institution impose the third-year and beyond undergraduate base and additional unsubsidized loan limits for independent students and dependent students, whose parents cannot borrow a Direct PLUS, who are enrolled at least half time in an eligible teacher certification program?

____________

____________

yes no n/a

2015–16 FSA Handbook, pp. 3-108, 3-113

4. Does the institution refrain from prorating loans for students enrolled in coursework necessary for teacher certification?

____________

____________

yes no n/a

685.203(d),(e),(g) T. Does the institution ensure it does not

originate Direct Loans that would cause students to exceed aggregate loan limits?

____________

____________

yes no





Response

685.203(d)(1),(e)(1) 2015–16 FSA Handbook, p. 3-123

1. Does the institution limit dependent undergraduates whose parents can borrow a PLUS to a total of $31,000 in Direct Subsidized and Unsubsidized Loans, of which up to $23,000 may be subsidized?

____________

____________

yes no n/a

685.203(d)(1),(e)(2) 2015–16 FSA Handbook, p. 3-123

2. Does the institution limit independent undergraduates and dependent undergraduates, whose parents cannot borrow a PLUS, to a total of $57,500 in Direct Subsidized and Unsubsidized Loans, of which up to $23,000 may be subsidized?

____________

____________

yes no n/a

685.203(d)(2),(e)(3) 2015–16 FSA Handbook, p. 3-123

3. Does the institution limit graduate and professional students to a total of $138,500 in Direct Subsidized and Unsubsidized Loans (less any amount borrowed as an undergraduate), of which up to $65,500 may be subsidized?

____________

____________

yes no n/a


4. If a student previously qualified for higher additional Direct Unsubsidized Loan limits, but then loses eligibility for those higher loan limits (e.g., the parent received a PLUS after having previously been denied; a student previously in a graduate program enters an undergraduate program), does the institution only include loans the student would have received under his or her current eligibility when determining the student’s remaining aggregate eligibility?

____________

____________

yes no

685.203(e) 5. Does the institution consider all

Direct Subsidized and Unsubsidized Loan unpaid principal balances, excluding capitalized interest, borrowed under the FFEL and Direct Loan programs, as well as Federal Supplemental Loans for Students (SLS), when determining whether aggregate loan limits have been reached?

____________

____________

yes no





Response

Note: If an institution does not have health profession programs, skip Question U.

2015–16 FSA Handbook, p. 3-95 to 3-97

U. Does the institution allow applicable higher Direct Unsubsidized Loan limits for eligible health professions students who are enrolled at least half time in a health profession discipline that:

Was considered eligible under the

Health Education Assistance Loan (HEAL) Program or in certain naturopathic medicine programs; and

____________

____________

yes no

Is accredited by an approved

accrediting agency? ____________

____________

yes no


Note: Students enrolled in eligible foreign institutions of higher education do not qualify for the higher Direct Unsubsidized Loan limits.

2015–16 FSA Handbook, pp. 3-95, 3-97

1. Does the institution limit the amount of supplemental borrowing to the amount students would have been eligible to borrow under HEAL Program loan limits?

____________

____________

yes no


2. For a student enrolled in a doctoral program in Dentistry, Veterinary Medicine, Optometry, Allopathic Medicine, Osteopathic Medicine, Podiatric Medicine, Naturopathic Medicine, or Naturopathy, does the institution limit the amount of additional Direct Unsubsidized Loan a student may borrow to:

$20,000 for a 9-month academic

year; ____________

____________

yes no n/a

A prorated amount for 10- or 11-

month academic year; and ____________

____________

yes no n/a

$26,667 for a 12-month

academic year? ____________

____________

yes no n/a





Response


3. For a student enrolled in a graduate program in Public Health, a masters or doctoral program in Health Administration, or a doctoral program in Pharmacy, Chiropractic Medicine, or Clinical Psychology, Does the institution limit the amount of additional Direct Unsubsidized Loan a student may borrow to:

$12,500 for a 9-month academic

year; ____________

____________

yes no n/a

A prorated amount for 10- or 11-

month academic year; and ____________

____________

yes no n/a

$16,667 for a 12-month

academic year? ____________

____________

yes no n/a

2015–16 FSA Handbook, p. 3-96 to 3-97

4. Does the institution restrict the aggregate subsidized and unsubsidized Direct Loan limits for these students to $224,000, of which up to $65,500 may be subsidized?

____________

____________

yes no


5. If a student previously qualified for higher additional Direct Unsubsidized Loan limits, but then loses eligibility for those higher loan limits (i.e., changes programs to one for which the higher additional unsubsidized loan limits do not apply), does the institution only include loans the student would have received under his or her current program when determining the student’s remaining aggregate eligibility?

____________

____________

yes no


V. When originating a Direct Loan for a student concurrently enrolled, does the institution coordinate with the other institution(s) the student is attending to ensure there is no duplication of noninstitutional costs in the student’s COA?

____________

____________

yes no





Response


1. Does the institution ensure applicable annual loan limits are not exceeded for the period the student is concurrently enrolled?

____________

____________

yes no

VII. Disbursements 685.303(d)(5),(6) A. Does the institution disburse loan

proceeds in two or more substantially equal installments and with no installment being greater than one-half of the total loan amount for students enrolled in any program other than study abroad, unless the:

Loan period is not more than one

semester, one trimester, one quarter, or four months of a nonterm or nonstandard term program; and

____________

____________

yes no


Institution’s cohort default rate is less than 15 percent for each of the three most recent years for which data is available?

____________

____________

yes no

685.303(d)(4) 1. Does the institution combine the

disbursement of more than one installment of a loan only if the scheduled disbursement date of the earlier installment has elapsed and the student is still enrolled?

____________

____________

yes no

GEN-15-09 B. Does the institution treat a student, who

is enrolled in an eligible career pathway program, as ineligible for a Direct Loan for a payment period if the only courses the student is enrolled in are courses from the adult education component of the program?

____________ ____________

yes no n/a

685.303(d)(6)(i)(B) C. For study abroad programs for which it

is the home institution, does the institution disburse loan proceeds in a single disbursement only if the institution’s cohort default rate for the most recent fiscal year is less than five percent and the institution chooses to exercise the single disbursement option?

____________

____________

yes no n/a





Response

685.303(d)(3)(i) D. When the loan period includes more than one payment period, does the institution disburse loan proceeds at least once each payment period?

____________

____________

yes no

685.303(d)(3)(ii) E. When the loan period is one payment

period, does the institution make at least two disbursements of loan proceeds during that payment period?

____________

____________

yes no

685.303(d)(3)(ii)(A) 1. If the loan is originated for a single

term of a credit-hour program offered in standard terms or in substantially equal nonstandard terms with no term less than nine weeks, does the institution wait to make the second disbursement until the calendar midpoint between the first and last scheduled days of class of the loan period?

____________

____________

yes no n/a

685.303(d)(3)(ii)(B) 2. If the loan is originated for a clock-

hour program, a nonterm program, or credit-hour nonstandard term program with terms that are not substantially equal with no term less than nine weeks, does the institution wait to make the second disbursement until the student successfully completes half of the number of credit hours or clock hours and half of the number of weeks of instructional time in the payment period?

____________

____________

yes no n/a

685.303(g) 2015–16 FSA Handbook, p. 4-60

F. If, before disbursing a Direct Loan, the institution learns the borrower has received, or will receive, additional financial aid that exceeds the amount of assistance for which the student is eligible, does the institution reduce or eliminate the overaward by:

____________

____________

yes no

Using the student’s Direct

Unsubsidized Loan, Direct PLUS, state-sponsored, or private loans to cover the EFC;

Returning the entire disbursement

and originating a new loan for a lower amount;





Response

Disbursing the portion for which the student is eligible and returning the ineligible portion to the Direct Loan Program;

Reducing or canceling aid over

which the institution has control if the institution has not already received the loan funds;

Canceling or reducing a second or

subsequent disbursement of the loan; or

Returning the entire loan proceeds

and canceling the loan if the overaward cannot be resolved by any of the above methods?

685.303(g)

1. Does the institution exclude from the overaward determination any FWS funds that do not exceed the student’s need by more than $300?

____________

____________

yes no n/a

VIII. Entrance Counseling 685.304(a)(1),(2) GEN-15-06 2015–16 FSA Handbook, pp. 2-126 to 2-127, 2-128

A. Does the institution provide entrance counseling to each first-time student borrower at, or prior to, the release of the first disbursement of the borrower’s Direct Loan?

____________

____________

yes no

685.304(a)(1) 1. Does the institution treat as a first-

time student borrower any student who has not previously borrowed a subsidized or unsubsidized loan under the FFEL or Direct Loan programs?

____________

____________

yes no

685.304(a)(2) 2. Does the institution treat as a first-

time graduate PLUS borrower any student who has not previously borrowed a graduate PLUS under the FFEL or Direct Loan programs?

____________

____________

yes no n/a





Response

685.304(a)(3) 3. Does the institution ensure the borrower, during entrance counseling, receives comprehensive information on the terms and conditions of the loan and his or her responsibilities with respect to that loan?

____________

____________

yes no

685.304(a)(3) 4. Does the institution conduct the

entrance counseling either: ____________

____________

yes no

In-person; In a separate written form

provided to the borrower that the borrower signs and returns to the school;

Online with the borrower

acknowledging receipt of the information; or

Through the use of interactive

programs that test the borrower’s understanding of the terms and conditions of his or her loans?

685.304(a)(4) 5. If the counseling is online or through

the use of interactive electronic means, does the institution take reasonable steps to ensure the borrower receives the counseling materials, participates in, and completes the counseling?

____________

____________

yes no n/a

685.304(a)(5) 6. Is someone with Title IV expertise

reasonably available shortly after the counseling to answer questions?

____________

____________

yes no

685.304(a)(5) 2015–16 FSA Handbook, p. 2-130

7. Does the institution ensure students enrolled in correspondence or study abroad programs receive entrance counseling?

____________

____________

yes no n/a





Response

685.304(a)(6), (a)(7)(iv)

B. For a Direct Subsidized Loan and Direct Unsubsidized Loan, or a graduate PLUS borrower who has not previously borrowed under the FFEL or Direct Loan programs, does the entrance counseling include:

685.304(a)(6)(i) An explanation of the use of the

MPN; ____________

____________

yes no

685.304(a)(6)(ii) The seriousness and importance of

the repayment obligation the borrower is assuming;

____________

____________

yes no

685.304(a)(6)(iii) The likely consequences of default,

including adverse credit reports, delinquent debt collection procedures under federal law, and litigation;

____________

____________

yes no

685.304(a)(6)(iv) The borrower’s obligation to repay

the full amount of the loan even if he or she does not complete the program, does not complete the program within the regular time for program completion, is unable to obtain employment upon completion, or is otherwise dissatisfied with or does not receive the educational or other services that the borrower purchased from the school;

____________

____________

yes no

685.304(a)(6)(v) Examples of monthly repayment

amounts based on: 1) a range of level of indebtedness of Direct Subsidized and Unsubsidized Loan borrowers or student borrowers with Direct Subsidized, Direct Unsubsidized, and Direct PLUS loans, or 2) the average cumulative indebtedness of other borrowers in the same program as the borrower at the same institution;

____________

____________

yes no

685.304(a)(6)(vi) To the extent practicable, an

explanation of the effect of accepting the loan on the borrower’s eligibility for other forms of financial aid;

____________

____________

yes no





Response

685.304(a)(6)(vii) Information on how interest accrues and is capitalized during periods when interest is not paid by the borrower or ED;

____________

____________

yes no

685.304(a)(6)(viii) The borrower’s option to pay interest

on a Direct Unsubsidized Loan while in school;

____________

____________

yes no

685.304(a)(6)(ix) The institution’s definition of half time

during regular terms and the summer, and the consequences of not maintaining half-time enrollment;

____________

____________

yes no

685.304(a)(6)(x) An explanation of the importance of

contacting the appropriate institutional office(s) if the borrower withdraws before completing his or her program of study so the institution can provide exit counseling, including information regarding the borrower’s repayment options and loan consolidation;

____________

____________

yes no

685.304(a)(6)(xi) Information on the National Student

Loan Data System (NSLDS) and how the borrower can access his or her records; and

____________

____________

yes no

685.304(a)(6)(xii) The name and contact information of

the individual the borrower can contact with questions regarding his or her rights and responsibilities or the terms and conditions of the loan?

____________

____________

yes no

685.200(f)(1)(i), First-time borrower 685.304(a)(6) (xiii)

C. For first-time borrowers on or after July 1, 2013, does the institution explain the limitation on eligibility for Direct Subsidized Loans and the possible borrower responsibility for accruing interest, including:

Possible loss of eligibility for

additional Direct Subsidized Loans; ____________

____________

yes no

How a borrower’s maximum

eligibility period, remaining eligibility period, and subsidized usage period are calculated;

____________

____________

yes no





Response

Possibility the borrower could become responsible for accruing interest on previously received Direct Subsidized Loans and the portion of a Direct Consolidation Loan that repaid a Direct Subsidized Loan during in-school status, the grace period, authorized periods of deferment, and certain periods under the Income-Based Repayment and Pay As You Earn Repayment plans; and

____________

____________

yes no

Impact of borrower responsibility for

accruing interest on the borrower’s total debt?

____________

____________

yes no

685.304(a)(7)(i),(ii) D. For a graduate Direct PLUS borrower,

does the entrance counseling include:

685.304(a)(7)(i) Sample monthly repayment amounts

based on: 1) a range of level of indebtedness of graduate PLUS borrowers or, depending on the types of loans the borrower has obtained, student borrowers with Direct PLUS, Direct Subsidized Loans, or Direct Unsubsidized Loans; or 2) the average indebtedness of other borrowers in the same program at the same school; and

____________

____________

yes no

685.304(a)(7)(ii) Borrower’s option to pay interest on

a PLUS while in school? ____________

____________

yes no

Note: If an institution does not have first-

time graduate PLUS borrowers who have previously borrowed a subsidized or unsubsidized loan, skip Question E.





Response

685.304(a)(7) E. For a first-time graduate PLUS borrower who has previously borrowed a subsidized or unsubsidized loan, does the entrance counseling include the following comparisons for a Direct Subsidized Loan, a Direct Unsubsidized Loan, and a Direct PLUS:

685.301(a)(3)(i)(A) 685.304(a)(7)(iii)

Maximum interest rate; ____________

____________

yes no

685.301(a)(3)(i)(B) 685.304(a)(7)(iii)

Periods when interest accrues; and ____________

____________

yes no

685.301(a)(3)(i)(C) 685.304(a)(7)(iii)

Point at which the loan enters repayment?

____________

____________

yes no

685.304(a)(9) F. Does the institution maintain

documentation substantiating compliance with the entrance counseling requirement maintained for each student?

____________

____________

yes no

685.200(c)(2) (viii)(A)(3) Federal Register, 11/14/15, pp. 1848 to 1849 Federal Register, 10/23/14, pp. 66617 to 66624, 66632 to 66633

G. Does the institution ensure PLUS borrowers who have an adverse credit history are approved for a PLUS loan on the basis of existing extenuating circumstances exist or obtaining an eligible endorser, receive loan counseling before receiving the PLUS loan?

____________

____________

yes no

IX. Exit Counseling 685.304(b)(1),(2) 2015–16 FSA Handbook, pp. 2-127, 2-129

A. Does the institution ensure exit counseling is conducted with each Direct Subsidized Loan borrower or Direct Unsubsidized Loan borrower and graduate or professional student Direct PLUS borrower either in person, by audiovisual presentation, or by interactive electronic means shortly before the borrower ceases at least half-time study at the institution?

____________

____________

yes no





Response

685.304(b)(4) B. During exit counseling, is the student borrower provided the following information:

685.304(b)(4)(i) His or her average anticipated

monthly payment based on the student’s indebtedness or the average indebtedness of borrowers with the same type(s) of loan(s) enrolled in the same program at the institution;

____________

____________

yes no

685.304(b)(4)(ii)

Available repayment plans, including a description of the different features of each plan and samples showing the average anticipated monthly payments with the difference in interest paid and total payments shown with each plan;

____________

____________

yes no

685.304(b)(4)(iii) Options to prepay, pay on a shorter

schedule, and change repayment plans;

____________

____________

yes no

685.304(b)(4)(iv) Effects of using a Consolidation

Loan to discharge FFEL, Direct Loan, and Federal Perkins Loans, including: 1) on total interest to be paid, fees, and length of repayment; 2) a borrower’s underlying loan benefits (e.g., grace periods, loan forgiveness, cancellation, and deferment); 3) the option to prepay or change repayment plans; and 4) borrower benefit programs that may vary depending on the lender;

____________

____________

yes no

685.304(b)(4)(v) Debt management strategies

designed to facilitate repayment; ____________

____________

yes no

685.304(b)(4)(vi) Information about how to contact the

entity servicing the borrower’s loans; ____________

____________

yes no

685.304(b)(4)(vii) 685.304(a)(6)(i)

Explanation of the use of the MPN; ____________

____________

yes no

685.304(b)(4)(vii) 685.304(a)(6)(ii)

Seriousness and importance of the repayment obligation;

____________

____________

yes no





Response

685.304(b)(4)(vii) 685.304(a)(6)(iv)

Borrower’s obligation to repay the full amount of the loan even if he or she does not complete the program, does not complete the program within the regular time for program completion, is unable to obtain employment upon completion, or is otherwise dissatisfied with or does not receive the educational or other services that the borrower purchased from the school;

____________

____________

yes no

685.304(b)(4)(viii) Likely consequences of default,

including adverse credit reports, federal delinquent debt collection procedures, and litigation;

____________

____________

yes no

685.304(b)(4)(ix)(A) General description of the terms and

conditions under which a borrower may obtain full or partial forgiveness or discharge of principal and interest, defer repayment of principal or interest, or be granted forbearance;

____________

____________

yes no

685.304(b)(4)(ix)(B) 2015–16 FSA Handbook, p. 2-129

Printed copy or a link to an electronic copy of ED-provided descriptions of federal student assistance programs, including the rights and responsibilities of students, information to enable student borrowers to assess the debt burden and the repayment obligations for their loans, as well as other repayment information;

____________

____________

yes no

685.304(b)(4)(x) Availability of the ED’s Student Loan

Ombudsman’s office; ____________

____________

yes no

685.304(b)(4)(xi) How to obtain information on their

loans’ statuses from NSLDS; and ____________

____________

yes no

685.304(b)(4)(xiii) Types of available tax benefits to

borrowers? ____________

____________

yes no





Response

685.304(b)(4)(xii) 685.200(f)(1)(i), First-time borrower

C. For first-time borrowers on or after July 1, 2013, does the exit counseling also explain:

1. How the borrower’s maximum

eligibility period, remaining eligibility period, and subsidized usage period are determined;

____________

____________

yes no

2. Sum of the borrower’s subsidized

usage periods at the time of the exit counseling;

____________

____________

yes no

3. Consequences of continued

borrowing or enrollment, including:

Possible loss of eligibility for

additional Direct Subsidized Loans; and

____________

____________

yes no

Possibility the borrower could

become responsible for accruing interest on previously received Direct Subsidized Loans and the portion of a Direct Consolidation Loan that repaid a Direct Subsidized Loan during in-school status, the grace period, authorized periods of deferment, and certain periods under the Income-Based Repayment and Pay As You Earn Repayment plans;

____________

____________

yes no

4. Impact of the borrower becoming

responsible for accruing interest on total student debt;

____________

____________

yes no

5. The Secretary will inform the student

borrower of whether he or she is responsible for accruing interest on his or her Direct Subsidized Loans; and

____________

____________

yes no

6. Borrower can access NSLDS to

determine whether he or she is responsible for accruing interest on any Direct Subsidized Loans?

____________

____________

yes no





Response

685.304(b)(4)(xiv)

D. During exit counseling, does the institution require the borrower to provide:

Borrower’s expected permanent

address; ____________

____________

yes no

Name and address of the borrower’s

expected employer; ____________

____________

yes no

Address of the borrower’s next of

kin; and ____________

____________

yes no

Any corrections to the institution’s

records related to the borrower’s name, address, Social Security Number, references, and driver’s license number and state of issuance?

____________

____________

yes no

685.304(b)(5)

1. Does the institution provide the information collected from the borrower during exit counseling to ED within 60 days?

____________

____________

yes no

685.304(b)(2) E. Is someone with Title IV expertise

reasonably available shortly after the counseling to answer questions?

____________

____________

yes no

685.304(b)(2) 2015–16 FSA Handbook, p. 2-130

F. Does the institution ensure a student enrolled in a correspondence or study abroad program receives exit counseling within 30 days after the borrower completes the program?

____________

____________

yes no n/a

685.304(b)(3) 2015–16 FSA Handbook, p. 2-127

G. When a student fails to attend an exit counseling session or leaves school without the institution’s knowledge, does it ensure exit counseling is provided either through interactive electronic means or by mailing written counseling materials to the student’s last known address within 30 days after the institution learns the student left school or failed to attend a scheduled counseling session?

____________

____________

yes no





Response

668.304(b)(7) H. Does the institution maintain documentation substantiating the institution’s compliance with exit counseling regulations for each student?

____________

____________

yes no

X. Recordkeeping and Reporting GEN-13-13 150% Direct Subsidized Loan Limit: Electronic Announcements #16, #17, and #19

A. Does the institution update a borrower’s academic year and loan period dates in the COD System if his or her actual enrollment differs from what it originally reported?

____________

____________

yes no

685.301(c) B. Does the institution submit required

Direct Loan disbursement records to the COD System in accordance with procedures established through publication in the Federal Register?

____________

____________

yes no

685.309(b)(1) GEN-14-07

C. Does the institution complete and return an enrollment reporting roster to the NSLDS within 15 days of receipt?

____________

____________

yes no

685.309(b)(2) 1. If the institution does not expect to

submit an enrollment report roster within 60 days of learning a student’s enrollment status or permanent address has changed, and that change would normally be reported on the roster, does the institution notify NSLDS within 30 days of the change?

____________

____________

yes no

668.24(c),(d)(3) 685.309(c) 2015–16 FSA Handbook, p. 2-142

D. Does the institution maintain the following records (including hard copy, microform, computer file, optical disk, CD-ROM, or other allowable media formats) for all loans received by, or on behalf of, its students:


Student Aid Report (SAR) or Institutional Student Information Record (ISIR) used to determine eligibility for a Direct Loan and/or graduate PLUS;

____________

____________

yes no

Documentation of each student and

parent borrower’s eligibility for Direct Loan funds;

____________

____________

yes no





Response

Loan amount, loan period, and calculation used to determine the amount of loan eligibility for which each loan was originated;

____________

____________

yes no

Direct Loan origination and

disbursement data submitted to COD;

____________

____________

yes no

Documentation of each Direct Loan

disbursement, including the amount and date of each disbursement;

____________

____________

yes no

Amount, date, and basis of the

calculation or treatment of any refund, overpayment, or return of Title IV funds paid to or on behalf of a student when he or she withdraws;

____________

____________

yes no

Documentation of information

collected during entrance and exit loan counseling; and

____________

____________

yes no

Any other record required for the

institution to document its compliance with applicable requirements with respect to the loan?

____________

____________

yes no

668.24(e)(2)(ii),(3) FSA Handbook, p. 2-143

E. Unless questioned by an audit, program review, investigation, or other review, does the institution maintain records and copies of reports relating to its participation in the Direct Loan Program for three years from the end of the award year in which the records are submitted?

____________

____________

yes no

668.24(e)(2)(i),(3) F. Unless questioned by an audit, program

review, investigation, or other review, does the institution maintain records relating to a student or parent borrower’s eligibility and participation in the Direct Loan Program for three years after the end of the award year in which the student last attended the institution?

____________

____________

yes no





Response

668.24(e)(3) G. Does the institution maintain student and parent borrower records questioned by an audit, program review, investigation, or other review until the later of:

____________

____________

yes no

Three years from the end of the

award year in which the student last attended the institution; or

The resolution of the review? 685.300(b)(6) H. Does the institution provide ED with

timely and accurate information concerning borrowers for purposes of servicing and collecting loans?

____________

____________

yes no

See also the Recommended Good Practices section (Part 1, Section VIII) of the Self-Evaluation Guide. Comments on Direct Loans

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