What is Title IV?

Federal student aid programs reauthorized under Title IV of the Higher Education Amendments of 1992. Sources of Title IV Aid funding include the following: Federal Family Education Loan Program (Federal Stafford Student Loan (subsidized and un-subsidized) Federal Perkins Student Loan, Federal Parent Loan for Undergraduate Students and Federal Supplemental Loan for Students) Federal Campus-Based Grants (Federal Supplemental Education Opportunity Grant and the Federal Pell Grant Program.

Available Only to Eligible Students Enrolled in Eligible Programs at Eligible Institutions

Types of Eligible Institutions:

• Institution of Higher Education

• Public or Private Nonprofit Institution Located in U.S. or Its Territories

• Proprietary Institution of Higher Education

• Private, For-Profit Institution Located in U.S. or Its Territories

• Postsecondary Vocational Institution

• Public or Private Nonprofit Institution Located in U.S. or Its Territories

Eligible Programs:

• Associate’s, Bachelor’s, Graduate or Professional Degree; or

• At Least a Two-Year Program That Is Acceptable for Full Credit Toward a Bachelor’s Degree; or

• At Least a One-Year (Federal Definition) Program That Leads to a Credential and Prepares Students for Gainful Employment in a Recognized Occupation

• Proprietary Institution of Higher Education

• All Eligible Programs Must Provide Training for Gainful Employment in a Recognized Occupation and at Least One of the Following Programs of Study:

• At Least 15-Week Undergraduate Program (600 Hours or 16 Semester or 24 Quarter Credits); or

• At Least 10-Week Program (300 Hours or 8 Semester or 12 Quarter Credits) at Graduate Level or That Admits Only Students with at Least an Associate’s Degree; or

• At Least 10-Week Undergraduate Program (300-599 Hours) That Admits Students without Associate’s Degree and That Has Verified Completion and Placement Rates of at Least 70% (Federal Calculation), Has Been in Existence for at Least One Year, and Meets Certain Program Length

Eligible Institution:

• Must Be Licensed or Otherwise Authorized by the State Where It Operates to Offer a Postsecondary Education Program

• Must Be Accredited by a Nationally Recognized Accrediting Agency

• Must Admit as Regular Students only Persons with High School Diplomas or the Recognized Equivalent or Persons beyond the Age of Compulsory School Attendance

• Two-Year Rule (Proprietary and Vocational Institutions Only)

• Must Have Been Licensed and Offering the Same Postsecondary Instruction for at Least Two Consecutive Years

• 90/10 Rule (Proprietary Institutions Only)

• Must Not Derive More Than 90% of Revenues from Title IV Funds

• Must Offer at Least One Eligible Program

• Must Not Have Filed for Bankruptcy Protection

• Institution, Owner, and CEO Must Not Have Pled Guilty, Pled No Contest, or Been Found Guilty of a Crime or Determined to Have Committed Fraud Involving Title IV Funds

• Ability-to-Benefit Rule (Non-Degree Institutions Only)

• At Least 50% of the Regular Students Enrolled in an Award Year Must Be High School Graduates or the Equivalent

• No More Than 25% of the Regular Students Enrolled in an Award Year Can Be Incarcerated

• No More Than 50% of Courses in an Award Year Can Be Offered by Correspondence and Telecommunications Courses are Correspondence Courses if All Telecommunications Courses and Correspondence Courses Together Equal at Least 50% of All Courses Provided

• No More Than 50% of Regular Students Enrolled in an Award Year Can Be Enrolled in Correspondence Courses

Federal Definitions:

• Academic Year (Two Components)

• Calendar Time 30 Weeks

• Amount of Instruction 900 Clock Hours; or

• 24 Semester Credits; or 36 Quarter Credits

• Clock Hour to Credit Formulas

• Must Be Able to Process Title IV Electronically

• Must Designate Capable Individual to Administer Title IV Programs

• Must Provide Financial Aid Counseling

• Must Have Adequate Staffing

• Must Adopt an Acceptable Satisfactory Academic Progress Policy

• Must Not Exceed Student Loan Default Limits

• New Schools Must Develop Default Management Plans

• New Schools Must Have Withdrawal Rate No More Than 33% (Federal Calculation)

• Neither School nor Any Principal Has Been Debarred or Suspended

• Financial Responsibility

• Assessment of Whether School Can:

• Provide Services Described in Its Publications

• Properly Administer Title IV Funds

• Meet All of Its Financial Obligations

• Responsible If It Has Composite Score of at Least 1.5 and Has Sufficient Cash Reserves to Make Required Refunds

• Is Current in Debt Payments

• Must Submit Irrevocable Letter of Credit

• Acceptable and Payable to Department

• Equal to 50% of Title IV Funds that Department Determines School Would Receive in Initial Year of Participation

Federal Pell Grant

Direct Non-repayable grant from the federal government to the student. Enrolled at least half-time Award determined by Federal Government. Recipients: Qualified Undergraduates

Federal Supplemental Educational Opportunity Grant (FSEOG)

Non-repayable grant to student by the institution from the federal government. Up to a maximum of $4000 (Determined by the institution) Requirements: Needy undergraduate student, complete FAFSA, Financial Aid Application Deadline: Valid student Aid Report received by May 1st

Federal Work Study Program

Provides part-time, self help employment opportunities on campus.

Work is awarded on the basis of family financial need. To qualify you must complete the Free Application for Federal Student Aid (FAFSA). Requirements: Undergraduate w/out prior degree, at least 3/4 time student, seeking degree, FAFSA.

Federal Stafford Loan Program

Long term, low interest loan from private lenders. Undergraduate and graduate students carrying at least one-half the normal academic load at an eligible institution. Degree seeking student. Up to $2,625 per academic year for 1st year undergraduates, $3,500 for 2nd year undergraduates, up to $5,500 per academic year for undergraduates who have completed their 1st and 2nd year, but have not completed their program with an aggregate limit of $23,000 for dependent students and $46,000 for independent students.

Up to $8,500 per academic year for graduate or professional students with a total aggregate limit of $138,500 including undergraduate loans

Subsidized: Need based; must submit FAFSA

Unsubsidized: Student pays interest or capitalizes interest while in school or deferment; must submit FAFSA