# Presentation: 412710

## Study Abroad Issues

- Marianna DeekenFederal Student AidAnthony JonesOffice of Postsecondary Education

## Overview

- Student Eligibility
- Program Eligibility
- Written Agreements
- Consortium, Contractual, Study Abroad specific
- Title IV Program Issues
- Pell, Loans, LEAP, Byrd
- Determining eligibility

## Student Eligibility

- Student in a study abroad program is eligible for aid if program is approved for academic credit toward student’s degree by eligible home school at which student is enrolled as a regular student
- In order for study abroad program to be eligible, home school must have written agreement with:
- Foreign school;
- Another U.S. school that contracts with foreign school; or
- Single written arrangement with a study-abroad organization to represent an agreement between the home school and the foreign school
- HEA Sec. 484(o), 34 CFR 668.39

## Student Eligibility

- 1992 HEA Amendments clarified that student enrolled/accepted for enrollment in study abroad program is eligible for Title IV assistance if
- Study-abroad program is approved for credit by the student’s home school
- Even if study abroad is not a required part of the student’s degree program

## Student Eligibility

- PPA Requirements
- School cannot deny Title IV funds on grounds that student is studying abroad if student is studying in an approved-for-credit program
- School must establish procedures that ensure its students studying abroad receive Title IV funds to which they are entitled

## Program Eligibility

- Participating institution may establish programs of study abroad through which its students are eligible to receive Title IV aid
- Study abroad program is an eligible program if:
- Students studying abroad concurrently remain enrolled at their eligible home school; and
- Eligible home school awards academic credit for the program of study abroad

## Program Eligibility

- To be eligible, study abroad program must be considered part of student’s eligible program
- However, it does not have to be a required part of the student’s eligible degree program in order to be an eligible study abroad program
- Study abroad program must meet requirements for written agreement
- In information it provides to students about a study abroad program, a school must inform students about the availability of FSA program assistance

## Program Eligibility

- Study abroad program configurations include:
- Home school sends students to a study abroad program at an eligible or ineligible foreign (host) school
- Home school must have a written agreement with the foreign school

## Program Eligibility

- Study abroad program configurations include (cont’d):
- Home school allows a student to complete a portion of student’s program at an eligible host school in U.S. and that host school offers a study abroad program in conjunction with either an eligible or ineligible foreign school
- Home and host schools in U. S. must have consortium agreement.
- Host school in U. S. must have a consortium or contractual agreement with foreign school.

## Program Eligibility

- Study abroad program configurations include (cont’d):
- Home school has a written arrangement with a study abroad organization that represents one or more foreign institutions instead of a separate agreement directly with each foreign school that its students are attending (34 CFR 668.5)
- For purposes of administering FSA programs, written agreement between the eligible institution and study abroad organization must adequately describe duties and responsibilities of each entity and meet requirements of the regulations

## Program Eligibility

- Study abroad program configurations include (cont’d):
- Variants of a study abroad program such as when a home school sends faculty and students to a foreign site
- This does not represent a consortium or contractual study abroad program
- Foreign site is considered an additional location under 34 CFR 600.32

## Written Agreements

- _Consortium Agreement_ – a written agreement between two or more eligible schools
- _Contractual Agreement_ – a written agreement between an eligible school and an ineligible school
- _Home School_ – the school where student is enrolled in a degree or certificate program
- _Host School_ – the school where student is taking part of his or her program through either a consortium or contractual agreement

## Written Agreements

- When there is a written arrangement between eligible institutions
- Any of the institutions participating in a written arrangement may make Title IV program calculations and disbursements without that institution being considered a third party servicer
- True even if student is not taking courses at the institution that is calculating and disbursing the aid.

## Written Agreements

- Two or more schools may enter into a consortium or contractual agreement so that student can continue to receive Title IV funds while studying at a school or organization other than his or her “home” school
- “Home” school is the one that will grant the student’s degree or certificate

## Written Agreements

- Under a written agreement (consortium or contractual), home school must give credit for courses taken at the other school on the same basis (in terms of instructional time) as if it provided the training itself
- Underlying assumption of such an agreement is that home school has found academic standards of the other school or organization to be equivalent to its own, and a completely acceptable substitute for its own instruction

## Written Agreements

- Home school may decline to give credit for courses in which a student earns a grade that is not acceptable at home school:
- Regardless of whether host school has policy of accepting that grade for its resident students.
- However, these courses must be included when calculating the quantitative component of the student’s SAP progress at the home school, even though grades received from a host school do not have to be included in the student’s GPA at the home school.

## Consortium Agreements

- Consortium agreement can apply to all Title IV programs
- Under a consortium agreement, students may take courses at a school other than home school and have those courses count toward degree or certificate at home school
- Student can only receive Title IV funds for courses that are applicable to the student’s degree or certificate program

## Consortium Agreements

- Consortium agreement can apply to all Title IV  programs
- A consortium agreement can be:
- Blanket agreement between two or more eligible schools; or
- Written for a specific student or group of students
- No limit on portion of eligible program that may be provided by eligible schools other than the home school

## Consortium Agreements

- If written agreements are not written for an individual student or group of students, agreements between schools can go on indefinitely
- Agreements do not have to be renewed unless the terms of agreement change

## Consortium Agreements

- Agreement contents can vary widely and will depend upon the interests of the schools involved and accrediting or state agency standards
- ED does not dictate format of the agreement or where it is kept

## Consortium Agreements

- The following items must be in all agreements:
- School that will grant degree or certificate
- Student’s tuition, fees, and room & board costs at each school
- Student’s enrollment status at each school
- School that will be responsible for disbursing aid and monitoring student eligibility, and
- Procedures for calculating awards, disbursing aid, monitoring SAP and other student eligibility requirements, keeping records, and distributing funds

## Consortium Agreements

- Usually home school is responsible for disbursing funds
- If student is enrolled for a full term or academic year at the host school, it may be easier for the host school to monitor student’s eligibility and make payments

## Consortium Agreements

- The school that disburses Title IV funds is responsible for:
- Maintaining information on student’s eligibility;
- How the award was calculated;
- What money has been disbursed; and
- Any other documentation associated with award
- Even if some of that documentation comes from other schools
- School paying student must return Title IV funds as required

## Contractual Agreements

- Eligible institution may enter into a contractual agreement with an ineligible school/organization under which ineligible school/organization provides part of the educational program of students enrolled at eligible school

## Contractual Agreements

- Eligible institutions are prohibited from entering into contracts with ineligible schools or organizations if the ineligible school or organization:
- Has had its eligibility to participate in the Title IV, HEA programs terminated by ED, or
- Has voluntarily withdrawn from participation in the Title IV, HEA programs under a termination, show-cause, suspension, or similar type proceeding initiated by the institution’s state licensing agency, accrediting agency, guarantor, or by ED

## Contractual Agreements

- Under a contractual agreement, eligible school is always the home school
- Home school performs all aid processing and disbursement functions for its students attending ineligible school or organization
- Home school is responsible for maintaining all records necessary to document student eligibility and receipt of aid

## Contractual Agreements

- For schools in a contractual agreement, there is a limit on portion of program that can be offered by the ineligible school
- If both home and ineligible schools are owned or controlled by the same individual, partnership, or corporation, no more than 25% of educational program can be provided by the ineligible school
- If the 2 schools are separately owned or controlled, ineligible school can provide up to 50% of the educational program

## Written Agreements:Study Abroad

- Study abroad program must be part of a written consortium or contractual agreement between 2 or more schools
- Home school must be located in the U.S.
- Study abroad program does not have to be a required part of eligible program at the home school in order for student to be eligible to receive Title IV funds
- Credits earned through study abroad must be acceptable toward degree or certificate.

## Written Agreements:Study Abroad

- Examples:
- Home school sends students to study abroad program at foreign (host) school
-  Home school must have written agreement with foreign school
- Home school allows student to complete a portion of program at eligible host school in U.S. and host school offers study abroad program in conjunction with foreign school
- Home and host schools in U.S. must have written agreement
- Host school in U.S. must have written agreement with foreign school

## Written Agreements:Study Abroad

- Examples (cont’d):
- Home school has written agreement with a study abroad organization that represents one or more foreign schools instead of a separate agreement directly with each foreign school that students attend
- For purposes of administering Title IV, HEA programs, written agreement between home school and organization must adequately describe duties and responsibilities of each entity and meet requirements of the regulations

## Written Agreements: Study Abroad

- Students participating in a study abroad program approved by home school are eligible for Title IV funds regardless of whether study abroad program is required for the student’s regular, eligible program of study, as long as:
- Student is an eligible regular student enrolled in an eligible program at the home school; and
- Eligible institution approves the program of study abroad for academic credit

## COA & Pell COA

- Law addresses costs associated with study abroad programs as follows:
- “For a student enrolled in an academic program in a program of study abroad approved for credit by the student’s home institution, reasonable costs associated with such study (as determined by the institution at which the student is enrolled).”
- For example, travel costs to or from the place of study might be included

## COA & Pell COA

- Student enrolled in study abroad program with COA higher than home school’s COA should have those extra costs reflected in the COA on which Title IV aid is based

## Loan Issues

- Exceptions to delayed delivery and multiple disbursement requirements
- If a school's cohort default rate for each of the 3 most recent fiscal years for which data are available is < 10%, school may choose to exempt itself from the delayed delivery and multiple disbursement requirement
- If eligible for exemption, the school may also apply it to its study abroad students
- If the school's cohort default rate for each of the 3 most recent fiscal years is not < 10%, an exemption may be applied to cover study abroad periods if school's single most recent cohort default rate is < 5%

## Loan Issues

- You may pay a student in an eligible study abroad program in a single disbursement, regardless of length of the loan period
- School’s most recently calculated Stafford Loan default rate _must be_ < 5% for single most recent fiscal year for which data is available

## Loan Issues

- Schools must conduct initial counseling with each first-time Federal Stafford Loan or Direct Loan borrower prior to the release of the first disbursement
- In the case of a student enrolled in a study abroad program, the school must provide written counseling materials by mail prior to disbursing the loan
- School may also use on-line counseling for study abroad students

## Loan Issues

- A student enrolled in an approved program of study abroad may give power of attorney to another individual to approve an EFT by a lender to the school account
- Separate EFT authorization statement is required in this circumstance because the Common Form is not designed to allow for power of attorney

## Loan Issues

- Direct disbursement of loan proceeds are permitted directly to the student at the *student’s* request
- GA or lender must verify enrollment prior to each disbursement
- Applies to FFEL only

**Notes:**
682.207 and 682.604
The requirement for the lender to verify enrollment does apply to each disbursement, including second and subsequent disbursements.

FOR INFO PURPOSES:

In case of confusion between study abroad and foreign schools, the foreign school provision is:
The direct disbursement of FFEL proceeds to a student is made only if requested by the foreign school and enrollment at that school is verified by lender or guaranty agency.

## Perkins Loans

- School may disburse Perkins Loan to student engaged in a program of study abroad if the student meets all eligibility requirements and is enrolled in an eligible program at the school that will accept credits earned abroad
- If the reasonable costs of foreign study program exceed cost of attending the home school, the awarded Perkins Loan may exceed the annual and/or aggregate loan limits by up to 20%

## FSEOG

- Maximum award of FSEOG for a full academic year is usually $4,000.
- You may award as much as $4,400 to a student participating in a study-abroad program that is approved for credit by the home school
- Minimum FSEOG amount is $100
- You may prorate this amount if student is enrolled for less than an academic year

## FWS

- FWS for period preceding study abroad
- Student in an eligible program of study abroad may be employed during a period of nonattendance preceding the study abroad if:
- student will be continuously enrolled in his/her U.S. school while abroad; and
- student’s study is part of U.S. school’s own program
- In this situation, student may be employed in qualified position:
- in U.S.;
- at U.S. school’s branch campus in foreign country; or
- at U.S. government facility abroad

## LEAP/SLEAP

- Many states exclude students who attend schools out of state, but some have reciprocal arrangements with neighboring states so that students may receive LEAP funds from their home state even though they are enrolled in another state
-  LEAP funds may be awarded to students participating in study-abroad programs that are approved for credit by the home school

## Byrd Scholarship

- A Byrd scholar may not use his scholarship to attend a foreign school
- Scholar studying abroad through an eligible institution (home school) that is located in a state is eligible to receive funds as long as she is enrolled at home school and receives credit from it

## Questions?Comments?Feedback? Marianna.Deeken@ed.gov206-615-2583 Anthony.Jones@ed.gov202-502-7652