Beauty Link - Volume 4, Issue 4 - (Page 20)
AND THEN THERE’S COMPLIANCE
The Compliance Challenge
THE CURRENT ENVIRONMENT
CONTRIBUTED BY DJA FINANCIAL AID SERVICES, INC.
Although compliance is a requirement, quality is a choice. Strengthen your school’s administration of the federal student aid programs... and you will have more success in meeting these challenging requirements.
of heightened focus and scrutiny on requirements for career schools along with the increasing number of complex regulations can be overwhelming. Some of the signiﬁcant changes made to the FSA programs over the last year alone include the Consolidated Appropriations Act of 2012. Eligibility for the Pell Grant was reduced from 18 semesters to 12 semesters (six years), requiring schools to monitor the Lifetime Eligibility Used for their students. Students who pass an ability to beneﬁt test or who completed six credit hours are no longer eligible for federal grants or loans. New subsidized Federal Stafford Loans made from July 1, 2012, to June 30, 2014, will not be eligible for subsidized interest beneﬁts during the six-month grace period. The Budget Control Act of 2011 effective on July 1, 2012, eliminated subsidized loan eligibility for graduate and professional students on any loans made after July 1, 2012. It is important to also note that this eliminates the need for veriﬁcation for these students as you are not required to do veriﬁcation if the only aid received is unsubsidized. Continuing into the 2013/2014 award year, the changes keep coming, and while most of the Gainful Employment (GE) regulations were overturned in July of 2012, keep in mind that institutions must continue to comply with the GE disclosure regulations. Information that you will need to know moving forward includes the Department of Education’s long-term goal for the veriﬁcation process. The transition to a customized selection approach based on the FAFSA data provided by each applicant is ongoing. For the 2013-2014 award year, veriﬁcation items remain the same, while requirements for documentation have changed for child support paid and SNAP beneﬁts. In addition, certain applicants will be required to verify their high school completion status and/or their identity and resubmit a Statement of Educational Purpose. A nother tidbit to remember is that on July 6, 2012, President Obama signed Public Law 112-141 that included a new limit on eligibility for Direct Subsidized Loans. A new borrower on or after July 1, 2013, will not be eligible for a new subsidized loan if the period during which the borrower has received such loans exceeds 150 percent of the published length of the borrower’s educational program.
The law also provides that a borrower reaching the 150 percent limit becomes ineligible for interest subsidy beneﬁts on all Direct Subsidized Loans ﬁ rst disbursed to that borrower on or after July 1, 2013. With all of these changes (and these are only a few), maintaining compliance with Title IV federal student aid regulations is a challenge, to say the least. It is imperative that institutions understand evolving FSA regulations and how internal policies impact their eligibility for continued participation in the federal student aid programs. To stay in compliance, institutions also need to review their internal policies and procedures on an ongoing basis to guarantee proper administration of the federal student aid programs and ensure that the requirements of institutional eligibility, ﬁ nancial responsibility and administrative capability are met. Developing policies and procedures is a daunting task but essential to form the foundation for assessing whether or not you are in compliance. Continually evaluate if you need to revise your policies and procedures or retrain staff, and never underestimate the value of quality training. Make sure that your staff is given the opportunity to attend compliance webinars, training sessions and conferences. Compliance is an institution-wide responsibility. Communication between the ﬁ nancial aid ofﬁce, administration, admissions and academic departments is critical. Stay informed and up to date with any policy or procedure changes, and collaborate on how these changes may impact the administration of ﬁ nancial aid. A lack of communication and collaboration greatly increases the chances of noncompliance. Although compliance is a requirement, quality is a choice. Strengthen your school’s administration of the federal student aid programs by implementing procedures that allow you to keep current on all provisions of the laws and program regulations and you will have more success in meeting these challenging requirements.
The online course CM105 - Beyond Compliance: Doing the Right Thing is now available on the AACS Online Training Center at www.aacstraining.org. Members call AACS at 800-831-1086 for your VIP Discount Code. Visit the following URL to learn more about this course: http://bit.ly/BeautyLinkCM105.
| B E AU TYLINK | DE STINY | 2012
Table of Contents for the Digital Edition of Beauty Link - Volume 4, Issue 4
Message from the aacs president and cea co-chairs
Workings of Washington
Meet Your New CEA Co-Chairs: Carol Woodard and Dan Cavanagh
Interrupted and Distracted: Five Ways to Get Back on Track
And then there’s compliance
Going Mentor: Paying Your Success Forward
A student’s perspective
Deliver Extraordinary Education: Building Your Dream Team
Considering a Sale: Expert Perspectives on Selling a School
Diversifying Your Offerings: One School’s Approach
Getting Ahead: 2013 Trends in Hair, Skin and Nail Education
Route to Succession: Planning the End of an Entrepreneurial Journey
Beauty changes lives
Strategic Success: Planning, Implementation and Accountability
What Makes a Dream Job: Fulfillment Is Just Around the Corner
The Video Test: Improving Behaviors with Evidence
AACS listserve q & a
Mastering Body Language: Six Nonverbal Cues to Use in the Classroom
The AACS Annual Convention & Expo Photo Spread
Associate member profiles: shears/clippers
People & places
New school members
Upcoming 2012-2013 events
Index to advertisers
Beauty Link - Volume 4, Issue 4