surviving clock hour programs

Surviving Clock Hour Surviving Clock Hour ProgramsPrograms

Missouri Association of Student Financial Aid Missouri Association of Student Financial Aid Personnel Personnel

Fall Conference Nov. 6, 2006Fall Conference Nov. 6, 2006Presented by:Presented by:

Ruth ChrismoreRuth ChrismoreStudent Aid AdministratorsStudent Aid Administrators

Clock Hour ProgramsClock Hour Programs

Maximizing your student’s eligibility Maximizing your student’s eligibility for Title IVfor Title IV

Developing Your Academic YearDeveloping Your Academic Year Maximizing Pell EligibilityMaximizing Pell Eligibility Maximizing Loan EligibilityMaximizing Loan Eligibility Calculations for Return to Title IV at Calculations for Return to Title IV at

Clock Hour InstitutionsClock Hour Institutions Transfer and Re-Entry StudentsTransfer and Re-Entry Students

Clock Hour ProgramsClock Hour Programs

Academic year must be one of the Academic year must be one of the following for a clock hour program:following for a clock hour program: 900 clock hours900 clock hours ANDAND At least 26 weeks of instructional timeAt least 26 weeks of instructional time

Determining “Weeks”Determining “Weeks”

Weeks of instructional time:Weeks of instructional time:– Begins on the first day of classesBegins on the first day of classes– Ends on the last day of classesEnds on the last day of classes

Definition of “week”:Definition of “week”:– Any period of 7 consecutive days in which at Any period of 7 consecutive days in which at

least one day of regularly scheduled least one day of regularly scheduled instruction, examination, or at least one instruction, examination, or at least one scheduled day of study for examination occursscheduled day of study for examination occurs

– Does Does notnot include: periods of orientation, include: periods of orientation, counseling, homework, or vacationcounseling, homework, or vacation

Academic CalendarAcademic Calendar

In a clock hour program academic In a clock hour program academic calendar is always:calendar is always:– Non-termNon-term

Students progress in their program based on Students progress in their program based on coursework successfully completed coursework successfully completed andand weeks of instructional timeweeks of instructional time

Payment Periods in Clock Hour Payment Periods in Clock Hour ProgramsPrograms

Program of an academic year or less Program of an academic year or less than an academic year:than an academic year:Payment period one is the period of time in Payment period one is the period of time in

which the student completes half the which the student completes half the number of clock hours and half the weeks of number of clock hours and half the weeks of instructional time in the programinstructional time in the program

Payment period two is period of time inPayment period two is period of time in

which student completes the remainder of which student completes the remainder of the program in both clock hours and weeks the program in both clock hours and weeks of instructional timeof instructional time


Programs longer than an academic Programs longer than an academic year and the remaining portion is year and the remaining portion is less than an academic year:less than an academic year:– The first payment period is the period of The first payment period is the period of

time in which a student completes the time in which a student completes the first half of the academic yearfirst half of the academic year

– The 2The 2ndnd payment period is the period of payment period is the period of time in which a student completes the time in which a student completes the 22ndnd half of the academic year half of the academic year


– For the remaining portion of the program:For the remaining portion of the program: If the remainder is equal to or shorter than one half of If the remainder is equal to or shorter than one half of

an academic year:an academic year:– the payment period is the remaining portion of the the payment period is the remaining portion of the

program in both hours and weeksprogram in both hours and weeks If the remainder is more than one half of an academic If the remainder is more than one half of an academic

year the payment period is:year the payment period is:– the period of time for the student to complete the 1the period of time for the student to complete the 1stst

half of the remaining portion of the program in both half of the remaining portion of the program in both hours and weekshours and weeks

– payment period two is the period of time for the payment period two is the period of time for the student to complete the 2student to complete the 2ndnd half of the remaining half of the remaining portion of the program in both hours and weeksportion of the program in both hours and weeks

Determining an Academic YearDetermining an Academic Year

Example 1 – Program equal to an Example 1 – Program equal to an academic year: academic year:

Program is 900 clock hours taught over Program is 900 clock hours taught over 30 weeks of instructional time :30 weeks of instructional time :

11stst Payment Period \ 2 Payment Period \ 2ndnd Payment Period Payment Period

0 hrs.0 hrs. 450 hrs.450 hrs. 900 900 hrs.hrs.

15 weeks15 weeks

Determining An Academic YearDetermining An Academic Year Example 2:Example 2: Program is 1500 clock hours and 50 Program is 1500 clock hours and 50

weeks and is considered a 1weeks and is considered a 1stst year certificate year certificate program. Student begins program on 10/15/06 program. Student begins program on 10/15/06 and is expected to complete 10/01/07. EFC is 0.and is expected to complete 10/01/07. EFC is 0.

Academic year is the program: 1500 clock hours Academic year is the program: 1500 clock hours and 50 weeks: and 50 weeks:

11stst Payment Period \ 2 Payment Period \ 2ndnd Payment Period Payment Period0 hrs.0 hrs. 750 hrs. 750 hrs. 1500 hrs.1500 hrs.

25 wks.25 wks. Student receives Pell Grant of 4050 in two payments at 0 Student receives Pell Grant of 4050 in two payments at 0

hours and 750 hours. In addition student (dependent) hours and 750 hours. In addition student (dependent) borrows Stafford Loan at 1borrows Stafford Loan at 1stst year level of 2625. year level of 2625.

Total Title IV aid received = $6,675Total Title IV aid received = $6,675

Determining An Academic YearDetermining An Academic Year

Example 2:Example 2: Program is 1500 clock hours and 50 weeks and is Program is 1500 clock hours and 50 weeks and is considered a 1considered a 1stst year certificate program. Student begins year certificate program. Student begins program on 10/15/06 and is expected to complete 10/1/07. program on 10/15/06 and is expected to complete 10/1/07. EFC is 0.EFC is 0.11stst academic year 900 clock hours in 30 weeks: academic year 900 clock hours in 30 weeks: 11stst Payment Period \ 2 Payment Period \ 2ndnd Payment Period Payment Period0 hrs.0 hrs. 450 hrs. 450 hrs. 900 hrs.900 hrs.

15 wks.15 wks.Student receives maximum Pell – 4050 and 2625 Sub. Stafford Student receives maximum Pell – 4050 and 2625 Sub. Stafford

loan.loan. 22ndnd academic year 600 clock hours in 20 weeks: academic year 600 clock hours in 20 weeks:

33rdrd Payment Period \ 4 Payment Period \ 4thth Payment Period Payment Period901 hrs.901 hrs. 1201 hrs. 1201 hrs. 1500 hrs.1500 hrs.

10 wks.10 wks.Student receives pro-rated Pell award from 07-08 of 2700 and pro-rated Student receives pro-rated Pell award from 07-08 of 2700 and pro-rated

Sub Stafford loan of $2,345. Sub Stafford loan of $2,345.

Determining An Academic YearDetermining An Academic Year

Student crosses over 7/1 so may receive Student crosses over 7/1 so may receive additional pro-rated Pell award from 07-08 additional pro-rated Pell award from 07-08 award yearaward year

In a borrower based academic year, upon In a borrower based academic year, upon completion of the 1completion of the 1stst academic year and academic year and 22ndnd academic year is less than an academic year is less than an academic year Stafford loan is pro-academic year Stafford loan is pro-rated .67 X 3500 = 2345.rated .67 X 3500 = 2345.

Total aid received: $6675 Yr. 1Total aid received: $6675 Yr. 1 5045 5045 Yr. 2 Yr. 2 $11,720 Total Aid $11,720 Total Aid

Pell Grant Crossover PeriodsPell Grant Crossover Periods

A crossover payment period is a payment A crossover payment period is a payment period that begins in the previous award period that begins in the previous award year and ends in the new award, crossing year and ends in the new award, crossing over July 1.over July 1.

School may assign a crossover payment School may assign a crossover payment period to either award year on a student-period to either award year on a student-by-student basisby-student basis

School must have a valid SAR/ISIR for any School must have a valid SAR/ISIR for any award year for which a disbursement is award year for which a disbursement is mademade


In determining which award year to use for In determining which award year to use for crossover payment periods considercrossover payment periods consider Student’s remaining eligibility in earliest award Student’s remaining eligibility in earliest award

yearyear Student’s EFC in both award years Student’s EFC in both award years The date the Pell disbursement can be made – The date the Pell disbursement can be made –

the earliest date for any Pell payment is 7/01 of the earliest date for any Pell payment is 7/01 of the award yearthe award year

If more than six months of a payment period If more than six months of a payment period are in a given award year, the payment must are in a given award year, the payment must be from that award yearbe from that award year


Schools must use same award year Schools must use same award year EFC to determine eligibility for FWS, EFC to determine eligibility for FWS, FSEOG, DL and FFEL crossover FSEOG, DL and FFEL crossover periodsperiods

School must have a valid SAR/ISIR School must have a valid SAR/ISIR from whichever year the award year from whichever year the award year is made fromis made from

Loan Cross Over PeriodsLoan Cross Over Periods

Crossover periods for loansCrossover periods for loans Because loans are calculated on a loan Because loans are calculated on a loan

period/enrollment period basis and subject to period/enrollment period basis and subject to annual limit:annual limit:

Schools may choose to use the needs analysis for Schools may choose to use the needs analysis for either award year for a loan period that crosses over either award year for a loan period that crosses over July 1.July 1.

Disbursement may be made prior to July 1Disbursement may be made prior to July 1 School must have valid SAR/ISIR with official EFC for School must have valid SAR/ISIR with official EFC for

award year selectedaward year selected School may choose award year EFC on student-by-School may choose award year EFC on student-by-

student basisstudent basis

Basis for R2T4 in Clock Hour Basis for R2T4 in Clock Hour ProgramsPrograms

Non-Term Clock Hour Programs: Non-Term Clock Hour Programs: – Payment period or period of enrollmentPayment period or period of enrollment– Consistent for all students in a programConsistent for all students in a program– May use different period for transfer-in May use different period for transfer-in

or re-entry students from those who or re-entry students from those who completed all hours in the program at completed all hours in the program at that schoolthat school

PERIOD USED IN CALCULATION PERIOD USED IN CALCULATION – (Cont’d)– (Cont’d)

May change for new students as they May change for new students as they begin class (after including in begin class (after including in consumer information, etc)consumer information, etc)

May change for current students May change for current students after changingafter changing– Consumer informationConsumer information– Written policies and proceduresWritten policies and procedures– Enrollment agreementsEnrollment agreements

PAYMENT PERIOD VS. PAYMENT PERIOD VS. ENROLLMENT PERIODENROLLMENT PERIOD

EXAMPLE 1 – Clock hour programEXAMPLE 1 – Clock hour programLength of program – 900 hoursLength of program – 900 hoursStudent withdraws at 300 scheduled hoursStudent withdraws at 300 scheduled hours300/450 = .67 – Student completed 67% of 300/450 = .67 – Student completed 67% of payment period.payment period.

Financial aid: Financial aid: ProgramProgram Payment PeriodPayment PeriodPellPell 40004000 20002000FFELFFEL 2000 2000 10001000

Aid disbursed or “could have been disbursed” Aid disbursed or “could have been disbursed” prior to withdrawalprior to withdrawal

PellPell 20002000FFELFFEL 10001000


EXAMPLE 1 – Clock hour program EXAMPLE 1 – Clock hour program (Cont’d)(Cont’d)

Payment Period BasisPayment Period BasisDisbursed aidDisbursed aid 3000 3000Aid that could have been disbursedAid that could have been disbursed 0 0 TotalTotal 3000 3000

Amount earned (100%)Amount earned (100%) 3000 3000Amount to be returnedAmount to be returned 0 0

TOTAL EARNED AID: $3000TOTAL EARNED AID: $3000


EXAMPLE 1 – Clock hour program (Cont’d) 300 EXAMPLE 1 – Clock hour program (Cont’d) 300 scheduled hours/900 program hours = 33.33% scheduled hours/900 program hours = 33.33% Student completed 33% of the programStudent completed 33% of the program

Enrollment Period BasisEnrollment Period BasisDisbursed aidDisbursed aid 30003000Aid that could have been disbursedAid that could have been disbursed 30003000 TotalTotal 60006000

Amount earned (33.33%)Amount earned (33.33%)20002000

Amount to be returnedAmount to be returned 10001000

TOTAL EARNED AID:TOTAL EARNED AID: $2000$2000


EXAMPLE 2 – Clock hour programEXAMPLE 2 – Clock hour program Length Length of program – 900 hoursof program – 900 hoursStudent withdraws in payment period 2 at Student withdraws in payment period 2 at 600 scheduled hours600 scheduled hoursFinancial aid: Financial aid: ProgramProgram Payment PeriodPayment Period

PellPell 40004000 2000 2000FFELFFEL 2000 10002000 1000

Aid disbursed (all eligible aid disbursed)Aid disbursed (all eligible aid disbursed)PellPell 40004000FFELFFEL 20002000


EXAMPLE 2 – Clock hour program EXAMPLE 2 – Clock hour program Payment Period BasisPayment Period BasisDisbursed aidDisbursed aid(payment period 2)(payment period 2) 30003000

Aid that could have been disbursedAid that could have been disbursed 0 0

TotalTotal 30003000

Amount earned 150/450 (33.33%)Amount earned 150/450 (33.33%) 10001000

Amount to be returnedAmount to be returned 20002000

TOTAL EARNED AID:TOTAL EARNED AID: $4000$4000$3000 1$3000 1stst payment period - $1000 2 payment period - $1000 2ndnd payment period payment period


EXAMPLE 2 – Clock hour program Period of EXAMPLE 2 – Clock hour program Period of Enrollment Basis:Enrollment Basis:Disbursed aidDisbursed aid 60006000(Payment period 1 and 2)(Payment period 1 and 2)Aid that could have been disbursedAid that could have been disbursed 0 0 TotalTotal 60006000

Amount earned 600/900 = .67 (100%)Amount earned 600/900 = .67 (100%) 60006000Amount to be returnedAmount to be returned 0 0

TOTAL STUDENT ELIGIBILITYTOTAL STUDENT ELIGIBILITY 60006000$$3000 13000 1stst payment period + $3000 2 payment period + $3000 2ndnd payment period payment period

Transfer and Re-Entry StudentsTransfer and Re-Entry Students

Re-entry students:Re-entry students:– Re-entry within 180 days of withdrawal:Re-entry within 180 days of withdrawal:

Returns into the same payment Returns into the same payment period as when withdrawal took placeperiod as when withdrawal took place

Re-Entry Students Within 180 DaysRe-Entry Students Within 180 Days

Re-entry within 180 days of Re-entry within 180 days of withdrawal date:withdrawal date:– Treated as though attendance did not Treated as though attendance did not

cease for Title IV purposescease for Title IV purposes– Costs are those costs for the original Costs are those costs for the original

payment period before the student payment period before the student withdrewwithdrew

Re-Entry Students Within 180 DaysRe-Entry Students Within 180 Days

– Re-disburse aid returned under Re-disburse aid returned under R2T4R2T4

– Disburse any aid student was Disburse any aid student was eligible for that was not disbursed eligible for that was not disbursed at time student withdrewat time student withdrew

– Cancel any overpayments assessed Cancel any overpayments assessed as a result of the prior withdrawalas a result of the prior withdrawal

Re-Entry Within 180 DaysRe-Entry Within 180 Days Example: 900 hour academic year; calculations Example: 900 hour academic year; calculations

are based on payment period. Student was are based on payment period. Student was scheduled to complete 225 hours at date of W/D. scheduled to complete 225 hours at date of W/D. Aid disbursed was:Aid disbursed was:– $1500$1500 Pell GrantPell Grant– 500500 FSEOGFSEOG

500500 Stafford LoanStafford LoanTotal $2,500 Aid DisbursedTotal $2,500 Aid DisbursedAfter R2T4 School returned $500 to Stafford Loan ProgramAfter R2T4 School returned $500 to Stafford Loan ProgramAfter grant protection applied student incurred $375 After grant protection applied student incurred $375

overpayment of which $100 was repaid to the school overpayment of which $100 was repaid to the school and student made satisfactory arrangements with school and student made satisfactory arrangements with school to repay balance.to repay balance.

Re-Entry Within 180 DaysRe-Entry Within 180 Days

Upon student’s return within 180 Upon student’s return within 180 days of withdrawal:days of withdrawal:– Student returns to the same payment Student returns to the same payment

period as of date of withdrawal. School:period as of date of withdrawal. School:requests that lender re-disburse $500 requests that lender re-disburse $500

Stafford loan returned under R2T4Stafford loan returned under R2T4Cancels $275 grant overpayment reported Cancels $275 grant overpayment reported

to NSLDSto NSLDSRepays student the $100 Pell that was Repays student the $100 Pell that was

repaid to school by studentrepaid to school by studentReschedules subsequent disbursementsReschedules subsequent disbursements

Re-Entry After 180 Days and Re-Entry After 180 Days and Transfer StudentsTransfer Students

Re-Entry 180 days after withdrawal Re-Entry 180 days after withdrawal date and transfer students given date and transfer students given credit for previous hours completed credit for previous hours completed in program of study:in program of study:– Student begins a new payment periodStudent begins a new payment period– Hours remaining in the program treated Hours remaining in the program treated

as student’s entire programas student’s entire program– Number and length of remaining Number and length of remaining

payment periods determined by payment periods determined by remaining length of programremaining length of program


Example: Student transfers to your Example: Student transfers to your Cosmetology program and was given Cosmetology program and was given credit for 650 hours of previous study credit for 650 hours of previous study at another institution. Academic at another institution. Academic year is 900 hours and program is year is 900 hours and program is 1500 hours.1500 hours.

This student’s program is 850 hours This student’s program is 850 hours at your school (1500 – 650 = 850)at your school (1500 – 650 = 850)


Example Cont’d:Example Cont’d: Student is paid in two payment Student is paid in two payment

periods: 425 hours/payment periodperiods: 425 hours/payment period Pell award is pro-rated at 850/900 Pell award is pro-rated at 850/900

(.95)(.95) Annual loan limit is pro-rated at Annual loan limit is pro-rated at

850/900 (.95)850/900 (.95)

Transfer StudentsTransfer Students For transfer students:For transfer students:

– School must check NSLDS History to determineSchool must check NSLDS History to determine Remaining Pell eligibility so student is not paid more Remaining Pell eligibility so student is not paid more

than annual scheduled awardthan annual scheduled award– Reduce Pell award if student has been paid a % of Reduce Pell award if student has been paid a % of

scheduled award at previous schoolscheduled award at previous school Remaining loan eligibilityRemaining loan eligibility

– 30 weeks must have elapsed since most previous loan 30 weeks must have elapsed since most previous loan period begin dateperiod begin date ANDAND

– Loan period end date on most previous loan must be Loan period end date on most previous loan must be prior to new loan period start date at your schoolprior to new loan period start date at your school

Reduce annual loan limit by amount borrowed at Reduce annual loan limit by amount borrowed at the previous schoolthe previous school

Add To NSLDS Transfer Monitoring if Pell or Loans Add To NSLDS Transfer Monitoring if Pell or Loans awarded in current award yearawarded in current award year

Transfer StudentsTransfer Students Example: Student transfers to your school Example: Student transfers to your school

and is enrolled in a 1and is enrolled in a 1stst year certificate year certificate program beginning August 15, 2006 and program beginning August 15, 2006 and has previously attended another has previously attended another institution. Student has 0 EFC and has a institution. Student has 0 EFC and has a 4050 scheduled award for 06-07. She 4050 scheduled award for 06-07. She received $1,012 at the previous school received $1,012 at the previous school from 06-07 Pell award year. In addition from 06-07 Pell award year. In addition student borrowed $875 Sub and 1000 student borrowed $875 Sub and 1000 Unsub loan for the period 7/1/06 to Unsub loan for the period 7/1/06 to 4/25/07. Your loan period is 8/15/06 – 4/25/07. Your loan period is 8/15/06 – 5/25/07. 5/25/07.

Transfer StudentsTransfer Students

Remaining Pell Eligibility:Remaining Pell Eligibility:– 75% of scheduled award: 4050 – 1012 = 303875% of scheduled award: 4050 – 1012 = 3038– Payment period 1: 2025Payment period 1: 2025– Payment period 2: 1013Payment period 2: 1013

– Remaining Loan Eligibility for loan period Remaining Loan Eligibility for loan period 8/15/06 – 5/25/07:8/15/06 – 5/25/07:

2625 – 875 = $1,750 remaining Sub eligibility2625 – 875 = $1,750 remaining Sub eligibility 4000 – 1000 = $3,000 remaining Unsub eligibility 4000 – 1000 = $3,000 remaining Unsub eligibility

QuestionsQuestions

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Ruth ChrismoreRuth Chrismore Student Aid AdministratorsStudent Aid Administrators 4495 Cove Rd.4495 Cove Rd. Osage Beach, MOOsage Beach, MO 573-302-7400573-302-7400

surviving clock hour programs

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